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id="cite_ref-:0_1-0" class="reference"><a href="#cite_note-:0-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> </p><p>One type of segmentation is to define groups "with little or no crossover capability", such that members of one segment cannot easily join another segment.<sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> This can result in different segments, for example men and women, receiving different wages for the same work.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> 19th-century Irish political economist <a href="/wiki/John_Elliott_Cairnes" title="John Elliott Cairnes">John Elliott Cairnes</a> referred to this phenomenon as that of "noncompeting groups". </p><p>A related concept is that of a <a href="/wiki/Dual_labour_market" title="Dual labour market">dual labour market</a> (DLM), that splits the aggregate labor market between a primary sector and a secondary sector.<sup id="cite_ref-:0_1-1" class="reference"><a href="#cite_note-:0-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="Neoclassical_economics">Neoclassical economics</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Labor_market_segmentation&action=edit&section=1" title="Edit section: Neoclassical economics"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The theory of labor market segmentation contrasts with <a href="/wiki/Neo-classical_economic_theory" class="mw-redirect" title="Neo-classical economic theory">neo-classical economic theory</a>, which posits the existence of a unified market for labor, consisting of buyers and sellers in open competition.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (September 2018)">citation needed</span></a></i>]</sup> The labor market thus functions as do other markets. In this model, the difference between different workers' wages and conditions arise from individual differences in their <a href="/wiki/Human_capital" title="Human capital">human capital</a> (skills, experience, or formal education) or tastes. On the latter, as part of the theory of <a href="/wiki/Compensating_wage_differentials" class="mw-redirect" title="Compensating wage differentials">compensating wage differentials</a>, those who prefer risky or dirty jobs receive higher compensation than those who take safe or clean ones. Put another way, differences in compensation for labor arise only on the supply side. </p><p>The theory of labor market segmentation posits that differences on the demand side imply differences in compensation that are not explained by individual worker characteristics. Labor markets are not <a href="/wiki/Perfect_competition" title="Perfect competition">perfect markets</a>. Non-market institutions such as <a href="/wiki/Craft_unions" class="mw-redirect" title="Craft unions">craft unions</a> and <a href="/wiki/Professional_associations" class="mw-redirect" title="Professional associations">professional associations</a> affect employer strategies, producing different results for workers with similar characteristics. </p><p>All workers should be subject to the same employment standards, such as minimum wages, maximum hour laws, occupational safety, security and health laws, regardless of sector.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="History">History</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Labor_market_segmentation&action=edit&section=2" title="Edit section: History"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1251242444">.mw-parser-output .ambox{border:1px solid #a2a9b1;border-left:10px solid #36c;background-color:#fbfbfb;box-sizing:border-box}.mw-parser-output .ambox+link+.ambox,.mw-parser-output .ambox+link+style+.ambox,.mw-parser-output .ambox+link+link+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+style+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+link+.ambox{margin-top:-1px}html body.mediawiki .mw-parser-output .ambox.mbox-small-left{margin:4px 1em 4px 0;overflow:hidden;width:238px;border-collapse:collapse;font-size:88%;line-height:1.25em}.mw-parser-output .ambox-speedy{border-left:10px solid #b32424;background-color:#fee7e6}.mw-parser-output .ambox-delete{border-left:10px solid #b32424}.mw-parser-output .ambox-content{border-left:10px solid #f28500}.mw-parser-output .ambox-style{border-left:10px solid #fc3}.mw-parser-output .ambox-move{border-left:10px solid #9932cc}.mw-parser-output .ambox-protection{border-left:10px solid #a2a9b1}.mw-parser-output .ambox .mbox-text{border:none;padding:0.25em 0.5em;width:100%}.mw-parser-output .ambox .mbox-image{border:none;padding:2px 0 2px 0.5em;text-align:center}.mw-parser-output .ambox .mbox-imageright{border:none;padding:2px 0.5em 2px 0;text-align:center}.mw-parser-output .ambox .mbox-empty-cell{border:none;padding:0;width:1px}.mw-parser-output .ambox .mbox-image-div{width:52px}@media(min-width:720px){.mw-parser-output .ambox{margin:0 10%}}@media print{body.ns-0 .mw-parser-output .ambox{display:none!important}}</style><table class="box-More_citations_needed_section plainlinks metadata ambox ambox-content ambox-Refimprove" role="presentation"><tbody><tr><td class="mbox-image"><div class="mbox-image-div"><span typeof="mw:File"><a href="/wiki/File:Question_book-new.svg" class="mw-file-description"><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/50px-Question_book-new.svg.png" decoding="async" width="50" height="39" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/75px-Question_book-new.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/100px-Question_book-new.svg.png 2x" data-file-width="512" data-file-height="399" /></a></span></div></td><td class="mbox-text"><div class="mbox-text-span">This section <b>needs additional citations for <a href="/wiki/Wikipedia:Verifiability" title="Wikipedia:Verifiability">verification</a></b>.<span class="hide-when-compact"> Please help <a href="/wiki/Special:EditPage/Labor_market_segmentation" title="Special:EditPage/Labor market segmentation">improve this article</a> by <a href="/wiki/Help:Referencing_for_beginners" title="Help:Referencing for beginners">adding citations to reliable sources</a> in this section. Unsourced material may be challenged and removed.</span> <span class="date-container"><i>(<span class="date">January 2023</span>)</i></span><span class="hide-when-compact"><i> (<small><a href="/wiki/Help:Maintenance_template_removal" title="Help:Maintenance template removal">Learn how and when to remove this message</a></small>)</i></span></div></td></tr></tbody></table> <p>Modern labor market segmentation theory arose in the early 1960s. It changed the view of many economists who had seen the <a href="/wiki/Labor_market" class="mw-redirect" title="Labor market">labor market</a> as a market of individuals with different characteristics of e.g., education and motivation. This perspective was intended to help explain the demand-side of the market, and the nature and strategy of employers. The idea of non-competing groups developed under the general label of labor market segmentation theory. The theory emerged in the United States. </p> <div class="mw-heading mw-heading2"><h2 id="Theory">Theory</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Labor_market_segmentation&action=edit&section=3" title="Edit section: Theory"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The market segmentation model was developed to accommodate the differences in job markets. For example, lawyers and fashion designers work in different markets. Such markets arise from the division of labor, increasing differentiation and specialization. These workers are unable to switch between occupations because they require different skills and investment in training and qualifications. For example, nurses and doctors form separate occupational labor markets even though they work side by side in the same organizations. </p><p>Geographical labor markets emerge because of the costs and disruption workers incur in changing locations. As a result, wages for the same work can remain higher in some locations than others. Conversely, employers would incur costs and disruption if they attempted to relocate to an area of lower labor costs, and might experience increases in non-labor expenses. Cultural differences such as preferences for leisure time versus work may follow geography. As ever more work becomes transacted over digital networks, in some industries, geographical labor markets have become less relevant, and we have seen the rise of a so-called planetary labor market.<sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> </p><p>Geographical segmentation also occurs on a global basis, specifically between developed and less-dedeveloped countries. However, when labor migrates to developed countries, migrants tend to remain within their original segment, receiving less compensation than native workers.<sup id="cite_ref-FOOTNOTEBauder2006_6-0" class="reference"><a href="#cite_note-FOOTNOTEBauder2006-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> One study found that <a href="/wiki/Neoliberal" class="mw-redirect" title="Neoliberal">neoliberal</a> globalization had expanded labor market segmentation. It found that in the West, nations import capital, consumer goods and services exported by countries in the rest of the world, where lower wage workers produce the exports.<sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Sectors">Sectors</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Labor_market_segmentation&action=edit&section=4" title="Edit section: Sectors"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>One important segmentation is primary/secondary.<sup id="cite_ref-auto_8-0" class="reference"><a href="#cite_note-auto-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> The two markets allow limited movement between them. The concepts of primary and secondary labor markets have now passed into conventional thought.<sup id="cite_ref-auto_8-1" class="reference"><a href="#cite_note-auto-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading4"><h4 id="Primary_sector">Primary sector</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Labor_market_segmentation&action=edit&section=5" title="Edit section: Primary sector"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In a primary sector the workforce receives significant wages and benefits. The job market consists of a majority of <a href="/wiki/Blue_collar" class="mw-redirect" title="Blue collar">blue collar</a> and <a href="/wiki/White-collar_worker" title="White-collar worker">white collar</a> jobs. The primary sector generally contains the higher-grade, higher-status, and better-paid jobs, with employers who offer the best terms and conditions. The primary sector is sometimes sub-divided into an upper and lower level. </p> <div class="mw-heading mw-heading4"><h4 id="Secondary_sector">Secondary sector</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Labor_market_segmentation&action=edit&section=6" title="Edit section: Secondary sector"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Secondary sector jobs are mostly low-skilled, require relatively little training, and can be learned relatively quickly on the job. Many such jobs feature high turnover, and/or variable demand. Employers are reluctant to invest in such workers, via advanced training or other employee development activities. Wages are low, and the terms and conditions of the job are less favorable.<sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup> </p><p>The two key formulations are labor market theory and internal labor market theory. The labor market segmentation theory revolves around the identification of a split between two analytic divisions in the economy and the labor market. </p> <div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Labor_market_segmentation&action=edit&section=7" title="Edit section: See also"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><a href="/wiki/David_Gordon_(economist)" title="David Gordon (economist)">David Gordon</a></li> <li><a href="/wiki/Split_labor_market_theory" title="Split labor market theory">Split labor market theory</a></li> <li><a href="/wiki/Flexicurity" title="Flexicurity">Flexicurity</a></li></ul> <div class="mw-heading mw-heading2"><h2 id="Notes">Notes</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Labor_market_segmentation&action=edit&section=8" title="Edit section: Notes"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist"> <div class="mw-references-wrap"><ol class="references"> <li id="cite_note-:0-1"><span class="mw-cite-backlink">^ <a href="#cite_ref-:0_1-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-:0_1-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://www.encyclopedia.com/doc/1O88-labourmarketsegmentation.html">"labour-market segmentation – Dictionary definition of labour-market segmentation | Encyclopedia.com: FREE online dictionary"</a>. <i>www.encyclopedia.com</i><span class="reference-accessdate">. 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Retrieved <span class="nowrap">2016-01-26</span></span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=myweb.lmu.edu&rft.atitle=Labor+Market+Segmentation+--+Notes&rft_id=http%3A%2F%2Fmyweb.lmu.edu%2Fjdevine%2Fnotes%2FLaborMarketSegm.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3ALabor+market+segmentation" class="Z3988"></span></span> </li> <li id="cite_note-9"><span class="mw-cite-backlink"><b><a href="#cite_ref-9">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://web.archive.org/web/20180920234734/http://info.worldbank.org/etools/docs/library/235451/Fields+note_jun06.pdf">"Fields + note"</a> <span class="cs1-format">(PDF)</span>. <i>info.worldbank.org</i>. 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Retrieved <span class="nowrap">2018-09-20</span></span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=info.worldbank.org&rft.atitle=Fields+%2B+note&rft_id=http%3A%2F%2Finfo.worldbank.org%2Fetools%2Fdocs%2Flibrary%2F235451%2FFields%2Bnote_jun06.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3ALabor+market+segmentation" class="Z3988"></span></span> </li> </ol></div></div> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Labor_market_segmentation&action=edit&section=9" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFBauder2006" class="citation book cs1">Bauder, Harald (2006-02-23). <i><a href="/wiki/Labor_Movement:_How_Migration_Regulates_Labor_Markets" title="Labor Movement: How Migration Regulates Labor Markets">Labor Movement: How Migration Regulates Labor Markets</a></i>. Oxford University Press. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/9780195346220" title="Special:BookSources/9780195346220"><bdi>9780195346220</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Labor+Movement%3A+How+Migration+Regulates+Labor+Markets&rft.pub=Oxford+University+Press&rft.date=2006-02-23&rft.isbn=9780195346220&rft.aulast=Bauder&rft.aufirst=Harald&rfr_id=info%3Asid%2Fen.wikipedia.org%3ALabor+market+segmentation" class="Z3988"></span></li></ul>    </div><noscript><img src="https://login.wikimedia.org/wiki/Special:CentralAutoLogin/start?useformat=desktop&type=1x1&usesul3=0" alt="" width="1" height="1" style="border: none; position: absolute;"></noscript> <div class="printfooter" data-nosnippet="">Retrieved from "<a dir="ltr" href="https://en.wikipedia.org/w/index.php?title=Labor_market_segmentation&oldid=1228703790">https://en.wikipedia.org/w/index.php?title=Labor_market_segmentation&oldid=1228703790</a>"</div></div> <div id="catlinks" class="catlinks" data-mw="interface"><div id="mw-normal-catlinks" class="mw-normal-catlinks"><a href="/wiki/Help:Category" title="Help:Category">Categories</a>: <ul><li><a href="/wiki/Category:Economic_systems" title="Category:Economic systems">Economic systems</a></li><li><a href="/wiki/Category:Labour_economics" title="Category:Labour economics">Labour economics</a></li></ul></div><div id="mw-hidden-catlinks" class="mw-hidden-catlinks mw-hidden-cats-hidden">Hidden categories: <ul><li><a href="/wiki/Category:All_articles_with_unsourced_statements" title="Category:All articles with unsourced statements">All articles with unsourced statements</a></li><li><a href="/wiki/Category:Articles_with_unsourced_statements_from_September_2018" title="Category:Articles with unsourced statements from September 2018">Articles with unsourced statements from September 2018</a></li><li><a href="/wiki/Category:Articles_needing_additional_references_from_January_2023" title="Category:Articles needing additional references from January 2023">Articles needing additional references from January 2023</a></li><li><a href="/wiki/Category:All_articles_needing_additional_references" title="Category:All articles needing additional references">All articles needing additional references</a></li></ul></div></div> </div> </main> </div> <div class="mw-footer-container"> <footer id="footer" class="mw-footer" > <ul id="footer-info"> <li id="footer-info-lastmod"> This page was last edited on 12 June 2024, at 18:18<span class="anonymous-show"> (UTC)</span>.</li> <li id="footer-info-copyright">Text is available under the <a href="/wiki/Wikipedia:Text_of_the_Creative_Commons_Attribution-ShareAlike_4.0_International_License" title="Wikipedia:Text of the Creative Commons Attribution-ShareAlike 4.0 International License">Creative Commons Attribution-ShareAlike 4.0 License</a>; additional terms may apply. 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