Influence of labor market structure on differences in outcomes and operation in local labor markets

This research increases our understanding of the relationship between labor market structure and outcomes, creates a valid labor market typology, and identifies labor market processes across labor market types, thus enhancing our knowledge of labor market operation. The importance of differences in the structure of local spatially defined labor markets in influencing labor market processes and outcomes is substantiated. The theoretical section provides an explanation for differential spatial development of labor markets based in the historical development of particular areas. Then, theories related to labor market operation and the attainment of individuals form the basis for theory and models linking labor market structure and operation with differences in labor market outcomes. This study addresses three questions: (1) How do labor market structures influence median earnings and poverty incidence in local labor markets? (2) Do similarities in labor market structures exist that permit the identification of labor market types? and (3) Do variations in local labor market structures influence the operation of labor markets such that individuals in one labor market type receive different returns than individuals in a second labor market type?;The study uses the newly released U.S. Census Public Use Microdata Sample-D, which identifies labor market areas based on patterns of individuals commuting to work. The first empirical phase verifies that local labor market structure--represented by five categories of variables: employment structure, employer power, worker characteristics, labor supply and demand attributes, and labor market size--influences median earnings and poverty incidence for men and women.;Gender differences in these empirical relationships lead to the identification of separate labor market types for men and women in the second empirical phase. The cluster analyses conducted in the second phase identified six men's and four women's labor market types.;In the final analyses, I estimate individual earnings models for men and women in each labor market type, using samples of individuals from the various labor market types. The models provide evidence that labor market structure influences the returns individuals receive in the labor market, linking labor market structure and differences in labor market operation and the rewards individual workers receive.