Measuring labour market segmentation for a comparative analysis among countries

Abstract

This article raises one main question in a comparative analytical exercise between two countries in different continents, Spain and Argentina. To what extent does labour market segmentation generate similar dynamics of structuring of labour inequalities in two countries with different socio-economic contexts and social models, and which aspects are specific to each country? The article is the first analytical work aimed at comparing European and Latin American countries from the theoretical perspective of labour market segmentation. We set two main objectives. The first was to construct an analysis model to study inequalities in the labour market in comparative terms between Europe and Latin America, taking as a reference Spain and Argentina. To this end, demand and supply variables were combined from an employment perspective. We sought to corroborate the general hypothesis that there is no single labour market that adjusts supply and demand, but that several segments can be expected to structure hierarchical positions in the labour market in line with specific labour supply profiles. We expected to obtain a high correspondence between the employment segments of the two countries, despite the contextual and socio-historical differences. The second objective was to propose a methodology to obtain two synthetic measures of labour market segmentation: first, a categorical measurement through a typology constructed from hierarchical positions and profiles using multivariate techniques (combining multiple correspondence factor analysis and cluster analysis); and second, a continuous measurement based on the results of factor analysis, resulting in a composite indicator of labour inequality.