Earlier it was thought the market was divided into a primary labour market and a secondary labour market. This was interesting because men dominated the primary labour market and women and minorities dominated the secondary labour market.
In the theory of labor market segmentation, there exists important differences on the demand side which imply differences in compensation and labor market segmentation theory splits the aggregate labor market into the primary labor market and the secondary labor market.
All research on labour markets has shown them to be divided or fragmented into a primary labour market and a secondary labour market. The term used today is Labour Market Segmentation suggesting there are many components to the market.
Primary labour markets tend to offer high salaries or wages, better working conditions, and more job stability. Primary labour market tends to be found in those sectors of business that are capital intensive. Labour that is required in primary labour market tends to be more skilled and the high costs of labour can often be covered by the profit generated from an efficient plant.
In primary labour markets, workers are more apt to be unionized and to be able to make greater wage demands than workers in a secondary labour market even though the primary labour market offers high pay, job security, good working conditions with favourable promotion prospects.
A multinomial probit model reveals that Turkish
apprentices and those from the other migrant groups have a significantly lower probability
of transition into the primary labour market, whereas EU15 migrants do not differ from
Germans in this respect. - [Labour market entry of migrants in Germany : does cultural
diversity matter? Haas, Anette, Damelang, Andreas.]
Dual labour market theory makes the connection between primary sector jobs, primary sector employers and primary sector workers. Dual labour market theory highlights the significant hurdles that limit some groups of workers access to primary labour market benefits. Will older workers who have operated in the primary labour market throughout their working lives be willing or able to re-enter the labour force in the less attractive secondary segment? - [Non-Regulatory Impediments to the Labour Market Participation of Mature Workers - Sally Weller].