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Theoretical Approaches to Segmented Labour Markets

Theoretical Approaches to Segmented Labour Markets In neoclassical economic theory labour is a commodity and the ultimate value of the employer's services is determined by the sales value of the product of these services the cost of supply reflects both the disutility of work for the recruit and his equalisation of net advantages between jobs. For modern labour economists the assumption that entrepreneurs require identical inputs of labour and the new recruits will therefore possess similar skills the conditions of free competition is an unrealistic one. Hence segmental labour market theory has grown out of the need to explain differences between shared needs and commonalities within each group of consumers employers on the one hand and suppliers employees on the other. In this way it has been possible to carry on assuming the existence of perfect competition on both sides of the market within the boundaries of labour markets thus defined. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Social Economics Emerald Publishing

Theoretical Approaches to Segmented Labour Markets

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0306-8293
DOI
10.1108/eb013879
Publisher site
See Article on Publisher Site

Abstract

In neoclassical economic theory labour is a commodity and the ultimate value of the employer's services is determined by the sales value of the product of these services the cost of supply reflects both the disutility of work for the recruit and his equalisation of net advantages between jobs. For modern labour economists the assumption that entrepreneurs require identical inputs of labour and the new recruits will therefore possess similar skills the conditions of free competition is an unrealistic one. Hence segmental labour market theory has grown out of the need to explain differences between shared needs and commonalities within each group of consumers employers on the one hand and suppliers employees on the other. In this way it has been possible to carry on assuming the existence of perfect competition on both sides of the market within the boundaries of labour markets thus defined.

Journal

International Journal of Social EconomicsEmerald Publishing

Published: Jul 1, 1980

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