Labor Market Segmentation Theory Research Articles

Crossers in a Segmented Labour Market: Occupational Advancement and Wage Changes from Semi-Skilled and Unskilled Jobs

How the upward mobility chances of workers in unskilled or semi-skilled jobs are shaped by influences at the organisational and sectoral level remains an open question. This article aims to close this research gap by examining the role of internal labour market characteristics in the promotion prospects and wage increases of workers in semi-skilled and unskilled positions. The hypotheses are derived from dual and segmented labour market theory. Regression analyses based on linked-employer-employee-data (LIAB), covering 44,024 workers in semi-skilled and unskilled positions from 2005 to 2010, underline the importance of the internal labour market. A considerable share of workers moved to skilled positions through company change. For the workers who stayed with the company, career advancements were associated with regular training investments and formalised regulations at the company level. Collective agreements, in contrast, were associated with lower chances of upward mobility, but higher wages.

The Evolution of Employment Law in the Gig Economy

Purpose: The general objective of the study was to explore the evolution of employment law in the gig economy. Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library. Findings: The findings reveal that there exists a contextual and methodological gap relating to the evolution of employment law in the gig economy. Preliminary empirical review revealed that traditional employment laws were insufficient for addressing the unique needs of gig workers, who face significant gaps in legal protections and benefits. The rise of gig work exposed flaws in existing legal frameworks, which were designed for permanent, full-time employment and fail to accommodate the flexible and often precarious nature of gig jobs. It was determined that existing laws needed substantial reform to better protect gig workers while maintaining the flexibility that defines gig work, emphasizing the need for updated legal frameworks that reflect the realities of modern employment. Unique Contribution to Theory, Practice and Policy: The Theory of Precarious Work, Flexicurity Theory and the Labor Market Segmentation Theory may be used to anchor future studies on the evolution of employment law. The study recommended several key reforms to address the shortcomings in the legal framework for gig workers. It suggested developing hybrid employment models that combine traditional benefits with the flexibility of gig work, reforming legal classifications to better fit gig work patterns, and enhancing regulatory frameworks to be more adaptive to technological and market changes. The study also advocated for promoting worker representation, implementing monitoring and evaluation mechanisms to assess the impact of reforms, encouraging international collaboration for harmonized regulations, and launching education and awareness initiatives to inform gig workers and employers about their rights and responsibilities. These recommendations aimed to create a more equitable and effective labor market for gig workers.

ÜNİVERSİTE ÖĞRENCİLERİNİN EK İŞTE ÇALIŞMA OLGUSUNUN TEORİK İNCELEMESİ

The practice of moonlighting, where people take on additional jobs to augment their principal source of income, is an intriguing phenomenon, which seems to be gaining more prevalence among higher education students. Researchers are therefore examining the effects of this tendency on students' academic performance and professional prospects more and more, underscoring the significance of this trend for scholarly attention. The current research intends to explore this trend using three well-established theoretical perspectives: Human Capital Theory, Labour Market Segmentation Theory, and Social Exchange Theory. By examining these viewpoints, we can learn more about how moonlighting can be viewed as an investment, comprehend the traits of various labour market segments and how they affect students' moonlighting behaviours, and finally, we can better understand why university students choose to or not to moonlight and the variables that influence their decisions.

Evolution of Informal Employment from a Gender Perspective based on LSTM

This study provides an in-depth examination of gender differences in informal employment and its time evolution in Brazil, uses an LSTM model to quantitatively predict gender differences in informal employment and its evolution in Brazil, and explores the deeper reasons that lead to gender differences in informal employment based on labor market segmentation theory and gender role theory. The predictive analysis shows that Brazilian male and female informal employment will show a slight downward trend from the fourth quarter of 2023 to the third quarter of 2026, and that male informal employment is generally higher than that of females throughout the time series. In addition, market segmentation theory reveals that the structural segmentation of the informal employment market as a peripheral component of lower wages and social security affects the sexes differently, while gender role theory further expands on socio-cultural expectations of men's and women's behaviors and occupational choices, highlighting the reinforcement of gender differences by these structural barriers. Ultimately, the study makes policy recommendations to promote gender equality and improve the conditions of informal employment in support of the sustainable development goals.

The reasons for the gap between academic education and the required skills of the labor market in Iran

PurposeThe present study aims to investigate the reasons for the gap between academic education and the required skills of the labor market in Iran.Design/methodology/approachFor this purpose, the authors adopted a thematic analysis method. The participants in the study were connoisseurs from universities and research institutes in Iran, who were selected with purposeful sampling methods of snowball type. To collect the data, the authors used a semi-structured interview and performed a thematic analysis for data analysis.FindingsThe findings showed that the views and perceptions of the connoisseurs participating in the study about the reasons for the gap between academic education and the skills required in the labor market in Iran can be classified into four main themes including lack of attention to labor market needs in the academic curricula, lack of attention to practical and entrepreneurial skills in the academic curricula, the weak link between universities and industry and society, and shortage of academic resources and equipment in some academic disciplines.Originality/valueThe present study had three implications. First, the human capital theory, the social closure theory, the positional conflict theory and the labor market segmentation theory are more compatible with the labor market of Iranian graduates, compared to other theories of the labor market. Second, the lack of coordination between academic education and the required skills in the labor market has weakened the Iranian economy. Third, the absence of practical and entrepreneurial skills in academic graduates has led to increased unemployment in Iranian society.

Institutional Segmentation, Inequality in Work Opportunities, and Income in Digital Labor Markets: Evidence Based on Witkey Transactions

ABSTRACT Digital technologies are rapidly transforming the world of work, creating digital labor markets. Based on transaction cost theory and labor market segmentation theory, this study adopts binary logistic and multiple regression models and uses EPWK transaction data (n = 21,808) to empirically examine the institutional segmentation phenomenon of digital labor markets. This study finds institutional segmentation existing in such markets, owing to differences in the Witkey level among employees, thus leading to inequality in work opportunities and labor remuneration income. Further, transaction mode and task type moderate the segmentation phenomenon. Suggestions are offered to reduce institutional segmentation by improving the platform system.

Access to the European Labor Market for Immigrant Women in the Wake of the COVID Pandemic

Economic crises and instability during the COVID pandemic have led to a significant additional workload and uncertainty for women. The COVID virus has spread extremely rapidly, and mobility and migration are severely limited, at least in the short term. The virus has a significant impact on the health of people from those considered to be migrants and refugees and their access to the labor market. According to Eurostat, 1.4 million people who previously resided in an EU Member State migrated to another Member State, and almost half of this population are women. Migrating women are particularly exposed to a number of specific consequences of the pandemic. Migrant women are disproportionately the first to be laid off and the last to be rehired. This is due to gender discrimination and precarious working conditions, such as low wages, the greater burden of care work, and alternative employment costs, especially given the gender wage gap and the difficulty of accessing the formal economy. This study examines the challenges many migrant women experienced in accessing the Eurozone labor market during the COVID pandemic. Based on this primary objective, the theoretical perspective of this research relies on the segmented labor market theory. Within the framework of documentary research, this work has chosen the path of descriptive analysis to achieve the study’s objectives. The findings presented in an intersectional framework suggest that the impact on migrant women workers during the COVID pandemic is exacerbated by a segmented labor market rooted in a capitalist context and by gendered structures of racism in the European labor market. In a capitalist context, migrant women would be over-represented in the informal economy due to segmented labor market policies and the effects of gendered racism. As a result, they would be at the forefront of redundancies during the pandemic because of their difficulty accessing the European labor market.

What Role Does EPL Play in Wage Determination under Segmented Labour Markets? A State-level Analysis from India’s Formal Manufacturing Sector

This study explores the role of employment protection legislation (EPL) in wage determination using a state-level panel dataset for India’s formal manufacturing sector. Unlike previous studies, we create a quantitative indicator of EPL using state-wise court judgements (on labour disputes), citing various sections of Chapters 5A and 5B of the Industrial Disputes Act, 1947, particularly those dealing with employment and wage-related legislations. Our findings suggest that pro-worker court judgements specifically on wage-related issues lead to an increase in the share of wages in industrial output. The findings are robust to alternative model specifications. However, we find that the share of wages responds negatively to an increase in pro-worker strictness in the overall EPL. We also analyse the consequences of labour market dualism, which is increasingly becoming a norm even in formal sectors. Using insights from labour market segmentation theory, we argue that a divergence in the regulation between regular and contract labour has a potential to undermine the success of active labour market policies in curbing the ill-effects of market segmentation. JEL Codes: J21, K31

Employment Protection Legislation and Labour Market Outcomes: A Unit Level Analysis of the Indian Manufacturing Sector

Abstract Building on insights from the insider-outsider theory, we examine the effects of the Employment Protection Legislation (EPL) on labour market outcomes, using high-court verdicts on labour disputes invoking Chapter 5-A and 5-B of the Industrial Disputes Act. Our regression analysis of a statewise unit-level dataset suggests that pro-worker judicial verdicts lead to an increase in wages and labour productivity especially in labour intensive industries, but discourage employment. The study demonstrates how the insider-outsider model combined with the labour market segmentation theory, unlike labour adjustment models, explain such findings consistently. The results suggest that loosening the EPL regime will have implications on the balance between the quantity and the quality of jobs, with serious consequences on industrial performance.

DETERMINANTS OF EMPLOYEES' MOVEMENT BETWEEN LABOUR MARKET SEGMENTS

The paper studies upgrading patterns between secondary and primary segments in Polish labour market, with reference to the Segmented Labour Market theory. The type of contact (permanent vs. fixed-term) and wage distribution were used within one framework to define these labour segments. The parameters of binary choice model, based on Labour Force Survey microdata, were estimated to calculate the probabilities of shift from secondary to primary segment, and to identify supply and demand-side determinants of this upgrading. The results are, in general, in line with the trap hypothesis, pointing out to limited chances of upward shift from secondary to primary labour segment. However, this upward mobility has increased in recent years, being a result of changes in real (measured by lowering unemployment rate) and institutional sphere of the Polish labour market. Individual’s age, education attainment, propensity to invest in human capital, as well as the size of an enterprise appeared to be the most important divers of inter-segments upgrading. Moreover, regional as well as sectoral differences in probability of upgrading were identified – this probability was higher in the case of workers living in regions with large agglomerations and close proximity to the German labour market.

Investigation into Labor Market Segmentation in the Construction Industry: A Case Study of Denizli City

Bu çalışmanın amacı, tabakalı işgücü piyasası kuramının ortaya attığı; “iyi iş” – “kötü iş” ayrımını inşaat sektörü özelinde değerlendirip, kuramın geçerliliğini Türkiye örneği ile ortaya koymaktır. Çalışmada nitel ve nicel araştırma yöntemleri bir arada kullanılmıştır. Nitel araştırma kapsamında Denizli ilinde, inşaat sektöründe faaliyet gösteren, iki ayrı inşaat firmasında çalışan 16 kişi ile derinlemesine mülakat yapılmıştır. Nicel araştırma kapsamında ise; Türkiye İstatistik Kurumu 2016 yılı Hane Halkı İşgücü Anketi Mikro Veri Setinden yararlanılmıştır. Araştırmanın nicel bulgularına göre; Türkiye’de inşaat sektöründe çalışanların %95,9’u kötü işte çalışmaktadır. Araştırmanın nitel bulgularına göre ise iyi iş; yüksek ücretli, fiziki güç gerektirmeyen, sosyal etkinliklerin, çalışanına değer veren işverenlerin, sorumluluğun ve saygınlığın olduğu, kişinin kendisini geliştirebildiği, sosyal ihtiyaçlarının karşılanabildiği ve işyerinde aidiyet hissinin yaratılabildiği iştir. Kötü iş ise; düşük ücretli, fiziki güç gerektiren, kayıt dışı çalışmanın, mobbingin ve fazla mesainin söz konusu olduğu, çalışma koşullarının ve çalışanların görev tanımlarının belirgin olmadığı, çalışanların sorunlarını ifade edemediği ve meslek hastalığı riski ile karşılaşabildiği iştir.

Expatriates at the base-of-the-pyramid. Precarious employment or fortune in a foreign land?

PurposeInternational human resource management research has only recently started to recognize the many millions of people who engage with the international labor market as low-skilled self-initiated expatriates. In contrast to company-assigned expatriates, they predominantly come from less-developed countries (often from rural areas) and independently decide to pursue an international career. The aim of this study is apply an expatriate-centered perspective and explore how expatriates at the base of the pyramid perceive the conditions of their international employment.Design/methodology/approachThe paper is based on a qualitative study among self-initiated expatriates in the tourism and hospitality industry in the United Arab Emirates (UAE).FindingsTwo theoretical categories that reflect the evaluation of expatriate employment were identified, namely the social comparison with friends and family who stayed at home as well as with other expatriates and locals and the temporal comparison to the situation before the expatriation and the prospective situation after the expatriation. Both categories largely differ from the concepts and categories prevalent in the expatriate literature.Research limitations/implicationsThe study contributes to the understanding of the temporal and transitory dimensions of expatriation, which have been barely addressed in the academic literature. It shows that self-initiated expatriation often represents a break in the professional and personal biography. It is less perceived as linear continuation of a steadily advancing career path than a restart or springboard to the future. The results are situated in the tourism and hospitality sector in the UAE and cannot be generalized to other countries and industries.Practical implicationsThe study emphasizes the relevance of social inclusion, equal opportunities, a safe work environment and a relaxed corporate culture for expatriates at the base of the pyramid.Originality/valueWhile research about self-initiated expatriates usually compares them with company-backed assignees, this comparison is not salient in the narratives of the interviewees in this study. Instead, low-skilled self-initiated expatriates predominately compare their current foreign assignment with the situation in their home country. This social comparison reflects their perceived reality of life better than a fictional comparison with highly skilled and company-assigned expatriates that is prevalent in the academic expatriation literature. By emphasizing an expatriate-centered perspective, the study supports and extends Piore's (1979) application of segmented labor market theory.

"노동시장분절이론 중심으로 본 다문화 한국 사회의 특징과 함의 -재한조선족 집거지를 중심으로-"

본 연구의 목적은 다문화 한국에서 같은 민족이자 해외 이주민 소수집단을 대표하는 조선족의 한국 이주와 집거지 형성의 특징과 그 함의를 알아보고자 하였다. 분석방법으로 다양한 이론 중 노동시장분절이론을 적용하였고 결과는 다음과 같다. 첫째, 집거지 형성의 특징은 집거지 내부에서의 분절동화현상과 중국 소수민족으로서 정체성 형성 및 자신들만의 사회단체를 설립 활동을 강화하고 있다. 둘째. 한국 사회에 뿌리 내려 있는 기존의 민족주의 개념 확대와 다문화주의 적용 실천, 그리고 완전한 영주권 전치주의로 전환을 고려해야한다는 함의가 있다. 연구 결과는 다문화 한국 사회가 미래 해외 이주민들과의 공존을 위한 연구에 활용될 수 있을 것이다.

Unclear Signals, Uncertain Prospects: The Labor Market Consequences of Freelancing in the New Economy

AbstractThe advent of various types of contingent jobs complicates selection criteria for full-time employment. While previous studies analyzed the penalties associated with other forms of contingent work, the labor market consequences of freelancing have been overlooked. I argue that freelancing works have features of both “good” and “bad” jobs, transcend the demarcation between “primary” and “secondary” sectors implied by segmentation theorists, and thus embed uncertainty around their categorization and meaning. Drawing on the “signal clarity” concept from management scholarship, I extend existing sociological works on employer perceptions of candidates by proposing a model to theorize how a history of freelancing affects workers’ prospects at the hiring stage. I present results from two interrelated studies. First, I use a field experiment that involves submitting nearly 12,000 fictitious resumes to analyze the causal effect of a freelancing work history on the likelihood of getting callbacks. The experiment reveals that freelancing decreases workers’ odds of securing full-time employment by about 30 percent. Second, I use data from 42 in-depth interviews with hiring officers to illustrate two mechanisms that could account for that observed effect. Interview data demonstrate that freelancing sends decidedly unclear competence signals: employers are hesitant to hire freelancers not because these candidates lack skills but because verifying these skills is difficult. Freelancing also sends clearer and negative commitment signals. This study sheds new lights on labor market segmentation theory and deepens our understanding of how nonstandard work operates as a vehicle for inequality in the new economy.

Skilled migrant employees' perceptions of support from line managers

PurposeThis paper explores the experiences of non-English-speaking background (NESB) skilled employees working in Australian workplaces, their perceptions of managers' actions and how a lack of employee involvement and participation (EIP) practices and performance appraisal (PA) is perceived regarding career progression.Design/methodology/approachThis exploratory research project is based on 26 semi-structured interviews with skilled migrant NESB employees based in Australia. Social exchange theory (SET) and labour market segmentation theory (LMST) are applied to help explain macro- and micro-level influences on NESB employees and their relationships with their line managers and the workforce.FindingsParticipants perceived line managers to be highly communicative and approachable; however, they indicated how a lack of EIP in decision-making and in their PA affected career progression opportunities for NESB employees. While they were satisfied overall with their jobs, the research indicated a need for improved practices and support from the broader organisation in these two identified areas.Originality/valueThere is relatively little research on how the challenges of an increasingly diverse workforce are managed, particularly from NESB employees' perspective. Therefore, this research fills a gap concerning NESB employees' experience in Australian organisations.

Decolonizing Migration Studies: A Chicanx Studies Perspective and Critique of Colonial Sociological Origins

Sociological research on international migration shares a fundamental question: What underlining forces drive migration? Sociologists use a number of theories such as neoclassical economics, new economics of migration, network theory, segmented labor market theory, and world systems theory among others to untangle the complexities of individual and group migration patterns. These theoretical propositions, and the methodological applications that are informed by them, are colonial in their epistemic origins and assumptions. Explored in this paper are the assumptions, limitations, and the epistemic privileging within westernized migration studies and sociology. Chicanx Studies systematically addresses this question by confronting colonization’s impact on how we contemporarily study, measure, and analyze human behavior including migration. Moreover, the discipline works to humanize Chicanx populations and their historic migratory life ways. For borderland theorist Gloria Anzaldúa the underling force that drives Chicanx and Mexican migration is their ontological and epistemological connection to their indigenous tradition of “long walks” across recent politicized borders. Her work contributes to migration studies’ lack of epistemic diversity and also gives insight to the historical relationship Chicanxs have with migratory practices to other parts of the U.S. beyond the Southwest.

Newly Hired Teacher Mobility in Charter Schools and Traditional Public Schools: An Application of Segmented Labor Market Theory

Compared with traditional public schools (TPS), charter schools on average have much higher teacher turnover rates. Our study draws on segmented labor market theory to examine the dynamics of the teacher labor market in charters and TPS, focusing on newly hired teachers. Based on longitudinal data for Utah’s public school teachers, we employ multiple methods to determine how the timing of newly hired teachers’ decisions to transfer or exit can be attributed to the sector differences. Results indicate that newly hired teachers in charters are more likely to exit the teaching profession and less likely to transfer to another school than TPS teachers.

Employment Quality: An Overlooked Determinant of Workers’ Health and Well-being?

In the past four decades, high-income countries have seen a thorough socio-economic restructuring with important implications for the jobs of many workers, including health- and safety-related aspects. Much attention has been paid to psychosocial risks related to intrinsic features of contemporary work tasks, while the occupational health and safety consequences of 'new' conditions and relations of employment have remained neglected. This relative neglect is unjustified given the disrupting nature of many contemporary forms of employment. In this commentary, I introduce the concept of 'employment quality' as a novel approach towards measuring employment-related OHS risks. Employment quality involves a 'typological approach' towards employment arrangements, identifying five employment types in European labour markets, showing a distinct profile in terms of health-related employment characteristics. Moreover, these types align with segmented labour market theory, have a clear socio-economic profile, and show strong associations with workers' self-reported health.

When Collective Bargaining Leads to Inequality: Determinants of Two-Tier Provisions in Canadian Collective Agreements

This study examines two-tier provisions—a form of labor segmentation in firms that is increasingly formalized in collective agreements. Drawing on a large population of Canadian collective agreements from the private sector, the authors show that the adoption of these provisions is related more to industrial relations context than to economic uncertainty. Also, depending on whether the two-tier provisions focus on compensation or on job security, their determinants operate dissimilarly. This study contributes to labor market segmentation theory by showing the circumstances under which collective bargaining can marginalize newly hired workers in the primary labor market, namely, weak union power, pressures from sectoral comparisons, employer use of concessionary tactics and, ironically, collective agreements featuring advantageous working conditions.

Multiple frames of reference: Why international student workers in Australia tolerate underpayment

This article advances research on why international students, who comprise a growing segment of the workforce in many countries, are underpaid. By revisiting Piore’s dual frames of reference theory, the article builds an important knowledge base around migrant workers’ tolerance of low pay. The research uses mixed methods incorporating a survey of 1433 international students, and interviews with 40 of them. Drawing on segmented labour market theory and examining workers’ ‘multiple frames of reference’, the article seeks to explain migrant workers’, in this case international students’, tolerance of extensive and persistent underpayment. While migrants’ reference to lower pay in their home country has long been accepted as explanation for their acceptance of low pay, it is not found to be a significant factor. The new concept of ‘peer frame of reference’ is developed to explain their tolerance of underpayment.