Dual labour market
Encyclopedia
The dual labour market theory divides the economy
into two parts, called the "primary" and "secondary" sectors. The distinction may also be drawn between formal/informal sectors or sectors with high/low value-added.
The secondary sector is characterized by short-term employment
relationships, little or no prospect of internal promotion
, and the determination of wage
s primarily by market forces. In terms of occupations, it consists primarily of low or unskilled jobs, whether they are blue-collar (manual labour), white-collar
(e.g. filing clerks), or service industry (e.g. waiters). These jobs are linked by the fact that they are characterized by "low skill levels, low earnings, easy entry, job impermanence, and low returns to education or experience."
The informal economy consists of labour that is often "pay-under-the-table". This market tends to attract the poor and a disproportionate number of minority group
members.
The dual labour market theory generally ignores the micro-level decisions such as an individual’s cost-benefit analysis. Instead, it focuses on immigration as a “natural consequence of economic globalisation and market penetration across national boundaries” (Massey, et.al., 1993, p.432). In whole, it is not concerned with individual decisions to migrate but focuses on what pulls them, as a collective group, to migrate. It argues that international migration starts from the labour demands of modern civilisations.
Economy
An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area...
into two parts, called the "primary" and "secondary" sectors. The distinction may also be drawn between formal/informal sectors or sectors with high/low value-added.
The secondary sector is characterized by short-term employment
Employment
Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...
relationships, little or no prospect of internal promotion
Promotion (rank)
A promotion is the advancement of an employee's rank or position in an organizational hierarchy system. Promotion may be an employee's reward for good performance i.e. positive appraisal...
, and the determination of wage
Wage
A wage is a compensation, usually financial, received by workers in exchange for their labor.Compensation in terms of wages is given to workers and compensation in terms of salary is given to employees...
s primarily by market forces. In terms of occupations, it consists primarily of low or unskilled jobs, whether they are blue-collar (manual labour), white-collar
White-collar worker
The term white-collar worker refers to a person who performs professional, managerial, or administrative work, in contrast with a blue-collar worker, whose job requires manual labor...
(e.g. filing clerks), or service industry (e.g. waiters). These jobs are linked by the fact that they are characterized by "low skill levels, low earnings, easy entry, job impermanence, and low returns to education or experience."
The informal economy consists of labour that is often "pay-under-the-table". This market tends to attract the poor and a disproportionate number of minority group
Minority group
A minority is a sociological group within a demographic. The demographic could be based on many factors from ethnicity, gender, wealth, power, etc. The term extends to numerous situations, and civilizations within history, despite the misnomer of minorities associated with a numerical statistic...
members.
The dual labour market theory generally ignores the micro-level decisions such as an individual’s cost-benefit analysis. Instead, it focuses on immigration as a “natural consequence of economic globalisation and market penetration across national boundaries” (Massey, et.al., 1993, p.432). In whole, it is not concerned with individual decisions to migrate but focuses on what pulls them, as a collective group, to migrate. It argues that international migration starts from the labour demands of modern civilisations.