Are there dual labor markets in Chile?: Empirical evidence

Abstract

In this paper we use a switching regression method to test the hypothesis that segmentation in the Chilean labor market exists. The results support the labor segmentation hypothesis and consequently they contradict those of Corbo and Stelcner (1983). The explanation for this is that we do not make any a priori definition of the population, as Corbo and Stelcner do. In fact, our results show that any a priori definition of the sample will lead to rejecting the segmentation hypothesis.