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Testing for Labor Market Duality
註釋Research on labor market duality, in the context of developing countries, has identified the secondary segment of the labor market more with the self-employed than with salaried employees. A few recent tests derive information on the existence of duality and the relative magnitudes of the primary and secondary sectors entirely from the structure of the wage equation. Furthermore, as an innovation relevant to the current state of the art, this paper estimates an indicator of the degree of formality of the job that a worker holds, and integrates this indicator into the structure of the wages. The indicator is found to have some effect on the structure of the wage equation which therefore suggests the existence of duality, even though duality is measured by the indicator as a continuum, rather than as a dichotomous split. Analysis of the spread of the indicator reveals a single mode in a distribution that can be viewed as the mixture of two normal distributions. Thus, the Ivorian labor market is one with a primary and a secondary pole, and with substantial overlap between those poles so as to deny the rigorous separation that is common in discussion about labor market duality.