The financial returns to years of education and experience should differ significantly depending on whether the individual is employed in the primary or secondary sector.
Two persons with identical years of education would have very different lifetime levels of income if one were hired into an entry level position in the primary sector and another were forced to work in a secondary job. Not only would the level of income differ between the two so would the rate of increase of earnings with additional years of experience. Therefore the primary worker moved up the job ladder in the internal labor market and the secondary workers’ earnings stagnated in a dead-end job.
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