Economic Dualism and Employment Stability

Abstract

Summary Factor analysis of the three‐digit census industry characteristics data for mining, construction, manufacturing, and communication, transportation, and public utilities reveals a sharp core‐periphery dichotomy in industrial structure. Regression analysis of four different measures of employment stability over four different time periods supports the contention that the circumstances of employment in core industries foster employment stability. These results are quite robust, holding for various different measures of employment stability and phases of the business cycle. They constitute strong evidence of the existence of industrial dualism and of its importance for theories of labor turnover and unemployment and for policies aimed at promoting employment stability.