What is the Dual Labor Market?
In 1971, Doeringer and Piore, two American economists, noticed that the labour market in the US appeared to be divided into primary and secondary spheres and coined the term "dual labor market." According to the authors, jobs in the primary market are distinguished by relatively high salaries, status and responsibilities, career mobility, and good working conditions. Jobs in the secondary sector, on the other hand, had negative characteristics such as low pay and working conditions, few or no promotion opportunities, and low levels of job security.
Jobs in the secondary sphere were frequently filled by women, ethnic minorities, and people from disadvantaged backgrounds and upbringings when the authors were writing. The initial analysis of the dual labor market asserted that secondary sector workers either chose those jobs or were there because they were less reliable or skilled than primary sector workers. Discrimination was only later brought to light.
The concept of a dual labor market falls under the larger umbrella of labour market segmentation; some analysts believe the market is divided into far more than two sectors. For example, the informal economy is the 'cash in hand' economy that operates outside of traditional legal and administrative frameworks.
What is the difference between primary and secondary labor markets?
There are several significant differences between the dual labor market's primary and secondary tiers. The primary sector markets are often unionised, which has a significant impact on both job security and benefits available to employees. Furthermore, in economies such as the United States, primary market jobs are frequently filled by native residents who were born and raised in the divided market.
In stark contrast to the Primary Sector, the Secondary Sector is associated with more negative characteristics such as low pay, poor working conditions, few or no opportunities for advancement, and unreliable job security. Again, migrants, ethnic minorities, and those with troubled upbringings or disadvantaged backgrounds are frequently employed in the second market. Because secondary market workers lack the dependability, skills, education, or knowledge of primary market workers, many secondary sector jobs have high turnover.