This paper presents a theory of labor market segmentation which pertains to regional sectors rather than dual industrial structures. Two positions are advanced regarding the effects of regional industrialization on status attainment parameters. Whereas the thesis of industrialism describes the emergence of nonascriptive patterns of allocation, the status maintenance thesis contends this transition is impeded by concurrent declines in educational inequality and occupational upgrading. These conflicting positions are examined by estimating attainment models within twelve Japanese regions varying widely in economic development. Results suggest moderate regional heterogeneity in attainment coefficients, implying that estimation of a single national model entails misspecification. The pattern of regional variation provides partial support for the status maintenance thesis, with occupational upgrading particularly important for the development of meritocratic organization. Macro-level structural models of these relationships are presented.
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David B. Grusky (1983) studied this question.