The measurement of segregation in the labor force

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When examining labor market inequality among various demographic groups, many instinctively attribute disparities to discrimination. Influential economists, including Nobel Laureate Gary Becker, have extensively analyzed this issue, revealing that measuring discrimination is far more complex than anticipated. This complexity arises not only from the measurement techniques but also from defining discrimination itself. Milton Friedman, another Nobel Laureate, warned against conflating equality of outcomes with equality of opportunity. The present work offers an in-depth exploration of segregation in the labor force, a concept closely related to but distinct from discrimination. While segregation can enforce discriminatory practices, it may also stem from voluntary choices influenced by preferences and household dynamics. The authors challenge the conventional focus on wage discrimination by emphasizing segregation and labor market segmentation. Their analysis is robust, combining theoretical insights with empirical evidence, particularly highlighting gender segregation within the Swiss labor market. This comprehensive examination sheds light on the nuanced interplay between segregation and discrimination, offering a fresh perspective on labor market dynamics.