LMI Reader Logo Labor Force Segmentation
By: Fay Walther


Introduction:
The concept of segmentation of the labor force is illustrated by four articles in this reader: the segments of analysis are age and gender. Some of the work experiences of these segments and labor outcomes such as wages may differ from the larger population or from other segments. The trends of these articles illustrate a pattern in regard to females' work experience and wages which begins with their employment as youths ages sixteen (16) to twenty (20). Age and gender segmentation are further explored in relation to employment and the distribution of wages. The articles which illustrate this concept are reviewed in the following order: 1) youth and employment; 2) gender and employment—two articles, and 3) gender, tenure, and employment. These articles illustrate the importance of research involving different segments of the labor force.

"Work Experiences of Wyoming's Youth" by Carol Toups, Research by Lee Saathoff, in Wyoming Labor Force Trends, July 1997, vol.34 No.7.
This article illustrates the concept of labor market segmentation by age, specifically ages sixteen (16) to twenty (20). The author examined employment by these youth and stated, " the largest group of young people (6,997 or 32.2%) are employed in the lowest paying jobs. Retail Trade… is first with 6,997 or 32.2 percent, and in second place is Services 3,712 or 17.1 percent." With regard to segmentation by gender, the author points out that "a serious problem that becomes apparent from our youth work experience study is that first employment for many young women seems to set the trend for future expectations and they do not always venture out of low paying Retail Trade and Services industries." Males may expand the variety of industries in which they find employment over time.

Additional Resources and References ( from previous article):
Several publications are referenced in the previous article which may be of assistance to teachers and career counselors dealing with youth, especially females who may need advice on occupations outside Retail Trade or Services. Wyoming Career Explorer is specifically designed for high school junior and senior students, and it contains up-to-date information on wages, educational requirements for selected careers, and programs of study offered in Wyoming. Wyoming Career Trails is designed for post high school individuals and includes information on high-technology job searches using the Internet, occupations which are expected to grow, and the financial benefits of changing jobs for some individuals. The publication Where Are The Jobs? What Do They Pay? contains wages and employment for each of Wyoming's counties. Together these publications may offer assistance to youth who want to explore several occupations or industries.

"The Relation of Age and Gender to Employment in Wyoming: Part One" by Brett Judd and Gregg Detweiler in Wyoming Labor Force Trends, May 1996.
The concept of segmentation of the labor market by gender and age is illustrated in this article. It " focuses on gender as a discriminating factor." The difference between males and females average weekly wage is substantial, with males earning $528 and females $270. This difference is $258 per week. The authors described an important trend for this labor segment: "in every industry, males make more than females." This research on labor market segmentation was expanded in a subsequent study in June 1996 which is described below.

"The Relation of Age & Gender to Employment: Part Two" by Gregg Detweiler and Brett Judd.
This article also focused on wage distributions by gender. Two important cautions in interpreting this data are that "no distinction is made between full and part-time employees and there are no analyses of occupations, education, or skill levels." Bearing these cautions in mind, the authors state that "in every one of the industries, the mean wage is higher for males than it is for females. There are six industries in which the average weekly wage for males was significantly higher than for females: depository industries; nondepository industries, security and commodity brokers; insurance carriers; health services, and legal services." The authors emphasize the importance of studying this segment of the labor market: "women are playing a larger role in today's workforce. In the past 15 years, we have seen women in the Wyoming labor force grow form 37.3% to 46.4%".

"Gender, Tenure and Wages" by Mary Beth O'Loughlin, Wyoming Labor Force Trends, August 1997.
This article illustrated labor market outcomes for males and females. O'Loughlin stated that "in all industries, for people with the same tenure, starting wages and wage increases for females lag behind males." This article illustrates the concept of labor market segmentation by gender, and that some outcomes such as wages may vary by gender. The author stressed an important caution in dealing with this segment of the labor market: occupations and hours worked per week was not available. With this caution in mind, females' average wage increases were only about 60 percent those of males with equal tenure. The largest discrepancy occurred after three years of tenure when males average "44.1 percent higher than their starting wages and females average 40.9 percent higher."

An important conclusion related wages and wages increases to age: " the 19-25 years age category may be an indicator of the future where the gaps are smaller or altogether nonexistent." This statement about the future may illustrate the importance of additional research on labor market segmentation for young adults ages 19 to 25. It can also be combined with the previous research on segmentation by youth ages 16 to 20. These studies illustrate the importance of research on the segmentation of the labor market by age and gender.

Conclusion:
In conclusion, the concept of segmentation of the labor market is illustrated by the previous research articles on age and gender: there are important differences between population segments, males and females, in their work experience and in their wage distributions. These segments of the labor market are important to understand in terms of their participation in the labor market as females become a larger segment of the workforce. The concept of segmentation is related to important labor market outcomes such as wages as illustrated in the previous four articles.


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