Segmentation theory

from Wikipedia, the free encyclopedia

Segmentation theories deal with how labor markets work. The term labor market segmentation comes from American labor economics of the 1950s. Due to the inductive nature of its origin, there are numerous forms of theory; The common element is the assumption that the labor market is split up into various sub-labor markets that function according to different principles and between which there is only limited exchange of labor.

Dual labor markets

The dual segmentation theory assumes two types of labor markets. In 1971, Doeringer and Piore wrote an often cited paper on the distinction between internal and external labor markets. External labor markets function according to conventional economic theory; H. the market determines both the allocation of labor and wages. In contrast, administrative rules and procedures play this role in internal labor markets.

Doeringer and Piore also divide the labor market in a vertical dimension, with employment risks serving as a differentiating criterion. In the primary sector, employees benefit from high wages, stable employment and good career opportunities. In the secondary sector, the chances of vertical mobility at work are lower and wages are lower.

Three-part segmentation

Werner Sengenberger developed a segmentation theory for the German labor market that distinguishes three types of labor markets:

  • unstructured (everyone's) labor markets
  • vocational partial labor markets
  • in-house partial labor markets

The unstructured labor market works according to neoclassical theory . There is only a loose bond between employee and employer; Job changes can be carried out inexpensively on both sides. The employees in the professional labor market have formal qualifications from a supra-company institution. There is a bond between a specific group of workers and a specific group of employers. The workers in the in-house labor market are protected from outside, have high wages and good prospects for advancement. You show a high level of loyalty to the employer and know company-specific processes.

criticism

The limited mobility between the various sub-labor markets is often explained with the aid of human capital theory. As a result, the segmentation theory remains "largely stuck in neoclassical thought structures instead of adopting an opposing position."

See also

literature

  • Peter B. Doeringer, Michael J. Piore: Internal Labor Markets and Manpower Analysis . Lexington (Mass.): Heath Lexington Books, 1971
  • Werner Sengenberger: Structure and functioning of labor markets. The Federal Republic of Germany in an international comparison . Frankfurt am Main: Campus Verlag, 1987.

Individual evidence

  1. Doeringer / Piore p. 2
  2. Michael J. Piore: Learning Processes, Mobility Chains and Labor Market Segments . P. 67–99 in: Werner Sengenberger (ed.), The split labor market. Problems of labor market segmentation. Frankfurt am Main / New York: Campus Verlag, 1978.
  3. Werner Stuhlmeier, Lothar Funk and Bernd Waas: Labor market theories. An economic-legal introduction. Heidelberg: Physica Verlag, 2010