Firm segregation

Date and country of first publication

2020
United States

Definition

Firm segregation refers to the division or separation of different types of firms based on certain characteristics or criteria. This can occur in various ways, including:

1. Industry segregation: Firms within an industry may segregate based on their specialization or focus. For example, in the banking industry, some firms specialize in commercial banking while others focus on investment banking.

2. Size segregation: Firms may segregate based on their size, such as small, medium, or large firms. This can be driven by different operational capabilities, resource availability, or market positioning.

3. Geographic segregation: Firms may segregate based on their location or geographic market. For example, firms may have regional offices or headquarters in different cities or countries, allowing them to cater to specific markets.

4. Segregation by target market: Firms may segregate based on their target market or customer segment. This can involve serving different demographic groups, such as age, income level, or geographical location.

5. Segregation based on business model: Firms may segregate based on their business model, such as traditional brick-and-mortar firms versus e-commerce or online-only firms.

Firm segregation can be influenced by various factors, including market demand, competition, regulatory requirements, and strategic choices made by firms. It can have implications on resource allocation, economies of scale, competition dynamics, and market structure.

Firm segregation appears in the following literature

Carrington W.J., Troske K.R. (1995). Gender segregation in small firms. Journal of Human Resources, 30(3), 503-533. https://doi.org/10.2307/146033

Carrington W.J., Troske K.R. (1998). Interfirm segregation and the black/white wage gap. Journal of Labor Economics, 16(2), 231-260. University of Chicago Press.https://doi.org/10.1086/209888

Müller T., Ramirez J. (2009). Wage inequality and segregation between native and immigrant workers in Switzerland: Evidence using matched employee employer data. Research on Economic Inequality, 17(), 205-243. https://doi.org/10.1108/S1049-2585(2009)0000017014

Storer A., Schneider D., Harknett K. (202). What Explains Racial/Ethnic Inequality in Job Quality in the Service Sector?. American Sociological Review, 85(4), 537-572. SAGE Publications Ltd.https://doi.org/10.1177/0003122420930018