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Dual Labor Markets

The analysis of the labor market is a critical topic in economics. From a microeconomic perspective, rational individuals invest in human capital (mainly accumulated in two ways: schooling and experience) to get better jobs and higher wages once they complete their educational attainment and join the labor market. An efficient labor market that properly matches the supply and the demand of jobs by qualifications is thus of salient importance for individuals. This entry describes the term dual labor market and discusses the implications of this market for education.

Definition

Optimal functioning of the labor market is prevented by the existence of a number of imperfections. These include persistent divisions among workers based on, for example, sex, ethnicity, educational attainment, and industry. Peter Doringer and Michael J. Piore ...

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