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SECONDARY LABOUR MARKET

Sociologyindex, Labour Market Segmentation, Primary Labor Market, Secondary Labour Market, Sociology Books 2011

Secondary labour market refers to those occupations which tend to be located in the most competitive areas of the economy and are more labour intensive.

Secondary labour market occupations tend to pay lower wages, have insecure employment, be less unionized, and provide less opportunity for advancement.

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 labour market.

Typical secondary labour market industries are restaurant and hotel services, cashiers and retail sales.

Secondary labour market has been dominated by women and minorities, while the other market (the primary labour market) has been dominated by white males.

The term 'secondary labour market' was originally part of what was referred to as dual labour market theory.

The term segmented labour market is now used but studies continue to find a significant dualism to the labour market and this continues to be useful for understanding women's occupational location and their low wages relative to men.

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.

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 be characterised as a ‘secondary labour market’ of insecure, poorly paid jobs without any career opportunities (Dekker, De Grip & Heijke, 2002).


 

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Sociology Index

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