An Empirical Study of Labor Market Segmentation: Reply.

The article presents a reply by Paul Osterman to a comment on his article by Paul Langley on an empirical study Osterman made about labor market segmentation. A number of errors was committed by Langley including his definition of the appropriate sample and his misspecification of various variables. The Public Use Sample of the 1970 census was used by Langley. The sample is a one-in-a-thousand 5 percent sample. Osterman accepts the changes made by Langley on the definition of the segments. He accepts the changes since the outcome of the tests will not affect the small differences in the definition.