Showing posts with label Labor market segmentation. Show all posts
Showing posts with label Labor market segmentation. Show all posts

Friday, August 3, 2012

Labor market segmentation


The idea of labor market segmentation is that strong barriers to entry prevent certain groups of workers from effectively competing for jobs in a given market. These barriers may take several forms. 
One is the internal labor market which prevents workers in the external market from competing for job openings above the entry level in the firm. A second is discrimination which causes workers of certain race or sex groups to be excluded from competition for desirable jobs.