By Duane E. Leigh
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A third approach consists o f s p e c i f y i n g a w a g e determination m o d e l that includes, in addition to human capital variables, a set o f "structural" variables i n t e n d e d to measure d e m a n d - s i d e factors that distinguish labor markets. I n a study discussed in the p r e v i o u s * Cain (1974, pp. 1245-1247) notes that truncating a sample is appropriate if the selection process is based on an exogenous or predetermined characteristic like skin color, age, or a genetic trait.
T h e simplest approach to testing the dualist hypothesis is to ex a m i n e the occupational or industrial distribution o f earnings and 2 Analytical Framework 27 other measures o f j o b quahty to see w h e t h e r a distinct b i m o d a l distribution is r e v e a l e d . Segmentation into m o r e than t w o sectors w o u l d similarly b e reflected in a m u l t i p e a k e d distribution. Based on the l i m i t e d amount o f e v i d e n c e currently a v a i l a b l e , both C a i n (1976, p .
22 An Analysis of the Determinants of Occupational Upgrading o l d e r workers, s k i l l e d i n d i v i d u a l s o f both racial groups may b e found in b a d j o b s . I n contrast, the dualist emphasis on institutionalized barriers to intersector m o b i l i t y y i e l d s the p r e d i c t i o n that l a r g e differences in rates o f return b y industry and region w i l l persist for groups o f workers w i t h equal e n d o w m e n t s . T h e critical r o l e assigned to racial discrimination suggests, m o r e o v e r , that intersector m o b i l i t y w i l l b e less for blacks than w h i t e s .