Sociology Index

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Labour Market Segmentation

Labour market segmentation theory splits the aggregate labor market into the primary labour market and the secondary labour market. A related concept is that of a dual labour market, which splits the aggregate labor market between a primary sector and a secondary sector. The labor market segmentation theory revolves around the identification of a split between two analytic divisions in the economy and the labor market. Labor market segmentation theory was developed to accommodate the differences in job markets.

The theory of labor market segmentation contrasts with neo-classical economic theory. Sloane et al. (1993), Orr (1997) and Roig (1999) shed light on the existence of labour market segmentation. The human capital theory does not assume the existence of labour market segments and emphasises differences in the qualities of the labour supply as the allocation basis. In the theory of labour market segmentation, there exists important differences on the demand side which imply differences in compensation. The expectation that a richer human capital stock leads to greater productivity and thereby to a greater chance of acquiring a better job and higher earnings.

A fundamental difference between the neoclassical economic theory and the labour market segmentation theory is the allocation process of workers. Labour market segmentation also refers to differences in the working conditions of individuals in the labour market that cannot be attributed to differences in productivity alone.

Architects and fashion designers work in different markets. Such markets arise from the division of labor and division of specialization. The labour market segmentation theory predicts the existence of a limited number of clearly distinguishable submarkets with the more alluring jobs on the upper tier of the spectrum and the less alluring jobs on the lower tier. The Irish political economist John Elliott Cairnes referred to labour market segmentation as that of "noncompeting groups."

Labour Market Segmentation Abstracts

Unequal Opportunity Structure and Labour Market Segmentation - Reinhard Kreckel. Sociology of social stratification and labour market economics have developed in isolation from one another. The present paper attempts to bring these two traditions closer together. Max Weber's idea of 'class situation as market situation' and to his concept of 'social closure' is advocated. Leads a typology model which is supposed to supersede the traditional notion of social inequality due to hierarchy and superposed strata.

Labour Market Segmentation and the Reserve Army of Labour: Theory, History, Future - Thomas Henry Stubbs. Abstract: This thesis begins by revisiting and building on themes of labour market segmentation, with particular reference given to Karl Marx’s seminal account of segmentation in Capital. A short history of segmentation under capitalism traces recent phases of development in both developed and lesser-developed nations. It is demonstrated that the coercive international regulatory dynamic extends the competitive principle of the capitalist mode of production.

Temporary Contracts and Labour Market Segmentation in Spain - An Employment-Rent Approach - Javier G. Polavieja.
The article presents a theoretical model as well as empirical evidence to explain this process. Two main micro-level effects of deregulation are identified, the so-called ‘incentive’ and ‘buffer’ mechanisms. These two mechanisms are expected to reinforce each other until an equilibrium state in the labour market segmentation process is reached.

Labour market segmentation, flexibility, and recession: a British Columbian case study. R Hayter, T J Barnes. Abstract. The purpose in this paper is to examine theories of labour market segmentation within the context of the early 1980s recession, and its immediate aftermath, in British Columbia, Canada. The paper is divided into four parts: first is a review of Doeringer's and Piore's classic presentation of labor market segmentation theory focusing on the Fordist firm, and a comparison of it with more recent statements on labour markets made by Atkinson in connection with his work on the flexible firm. Employment change and labour market segmentation are examined in terms of occupational, gender, and industry characteristics for manufacturing, wholesaling, and producer service sectors in British Columbia.

Labour Market Segmentation and Informal Work in Southern Europe - Enzo Mingione. This model is characterized by dynamic family enterprises and self-employment, non-wage contributions to house hold livelihood strategies; and the relatively limited formation of a fully proletarianized working class engaged in manufacturing industry.

Labour Market Segmentation in Central Europe during the First Years of Transition - Ariane Pailhé. Abstract: Using estimates from a two-regime model, we show that labour market segmentation has persisted throughout the first years of systemic change. However, labour market segmentation has evolved to some extent. Firms that used to have priority now coexist alongside new activities within the primary segment. In this way, labour market segmentation results both in the appearance of new, formal institutions and the persistence of informal institutions.

Labour Market Segmentation Revisited: A Study of the Dutch Call Centre Sector - Grip Andries de, Sieben Inge, Jaarsveld Danielle van. Call centres are often classified as ‘electronic sweatshops’ offering only ‘dead-end jobs’ (Taylor, et al., 2002; Deery & Kinnie, 2004). The labour market for call centre agents could thus be characterised as a ‘secondary labour market’ of insecure, poorly paid jobs without any career opportunities (Dekker, De Grip & Heijke, 2002). We investigate whether the need for workforce flexibility may provide an explanation for the labour market segmentation in the call centre sector. We begin with a brief overview of labour market segmentation theory. We investigate the differences between employment conditions in in-house and subcontractor call centres, to determine whether there is labour market segmentation. We assess the influence of industrial relations and determine whether these reflect the labour market segmentation.

Labour market segmentation and the state: the New Zealand experience - Peter Brosnan, David Rea and Moira Wilson. Analyses the role of the state in the historical process of labour market segmentation. The New Zealand labour market is used as an example of the state's role in the process of labour market segmentation.

The industrial structure and labour market segmentation: Urban and regional implications - Michael W. Danson. Abstract: Danson M. W. (1982) We argue that dualism in the industrial structure, as suggested by Averitt, 1968, and Galbraith, 1967, determines stratification and segmentation in the labour market, as suggested by Kerr, 1954, Piore, 1973, and Friedmann, 1977.

Labour Market Segmentation in Small Business - Karl-Heinz Schmidt. The paper gives insight into the functioning of the tripartite labour market and its consequences for employment fluctuations in very small enterprises and large firms. The question is whether small business is marked by labour market segmentation.

Labour Market Segmentation, Flexibility and Precariousness in the Italian North East. Tattara, Giuseppe, Valentini, Marco.
Abstract: Since the late 1970s, inequality of condition has been on the rise in a number of OECD countries. One of the main causes of economic inequality, in Italy as in many other European countries, is rooted in the segmentation of the labour market.

Segmentation or Competition in China's Urban Labour Market? John B. Knight, Linda Yueh. Abstract: In China, urban residents have been protected against labour market competition from rural-urban migrants. Rural-urban migration was allowed to increase in order to fill the employment gap as growth of labour demand outstripped that of the resident labour force in urban areas. The paper examines whether the relationship is one of segmentation or competition in the labour market. The findings are consistent with the presence of continued labour market segmentation.

WHAT BECAME OF LABOUR MARKET SEGMENTATION IN FRANCE: ITS CHANGING DESIGN - François Michon. An overview of the empirical questions, which presided at the time of the spreading of theories concerning the Labour Market Segmentation theory in France.

Family labour supply and labour market segmentation - John Baffoe-Bonnie.
Abstract: This paper examines the differences in individuals' labour supply decisions in different segments of the labour market. It is concluded that the family labour supply decisions of individuals differ by labour market segment.

Labour market segmentation: evidence from Cyprus House WJ.
Abstract: It is hypothesized that the market is segmented according to sex and the two endogenous variables, the public/private sector of employment, and firm size. To estimate the degree of labor market segmentation, author questions whether individuals can move from low-wage jobs in the secondary segment to the high-wage segment. The public sector's much smaller differentials show fairer recruitment and promotion policies with assured economic mobility into the sector's professional ranks.

Labour market segmentation in Britain: the decline of occupational labour markets and the spread of ‘entry tournaments’ - David Marsden. Abstract: This paper reviews the changing pattern of labour market segmentation in Britain since the mid-1970s. It examines the spread of highly competitive conditions for entry into service economy and knowledge economy.

TRAINING AND LABOUR MARKET SEGMENTATION
Paul G. Chapman. Abstract: A two period model of the training decision is analysed using a human capital approach.

Do they come back again? Job search, labour market segmentation and state dependence as explanations of repeat unemployment - R. Winter-Ebmer, J. Zweimüller. Empirical Economics, Physica Verlag, An Imprint of Springer-Verlag GmbH. Abstract: Using data from the Austrian unemployment register we test the power of three different approaches: job search theory, labour market segmentation and state dependence. Job search theory does not seem to be able to explain anything, labour market segmentation does.

Labour Market Segmentation: a Comparison between France and the UK From the Eighties to nowadays.
Aline Valette, Université de Provence (U1) et Université de la Méditerranée. Abstract: The evolution of their labour market segmentation. Is the predominance of Internal Labour Market in France and Occupational Labour Market in Great Britain still relevant?

Understanding Labour Market Segmentation: Filipina Healthcare Workers in Transnational Toronto
Philip Kelly, Sylvia D’Addario. Abstract: The concentration of visible minorities in certain occupations is well-established in the labour market literature. Explanations relate to social processes operating at the scale of the urban labour market: social capital and networks, regulatory frameworks, and constructions of racialised and gendered identities.