Dual Labor Market Theory posits that the labor market is divided into two segments: the primary market, characterized by high wages, job stability, and opportunities for advancement, and the secondary market, which features low wages, high turnover, and limited mobility. This segmentation is often attributed to structural factors and institutional practices rather than individual worker attributes, leading to persistent inequality in labor outcomes.

Dual Labor Market Theory

The labor market is the arena in which workers and employers interact, determining employment levels and wage rates based on supply and demand dynamics. It is influenced by various factors, including economic conditions, policy decisions, technological advancements, and demographic trends.

Labor Market

The primary market is where securities are created and sold for the first time, allowing issuers to raise capital directly from investors. It plays a crucial role in the financial system by facilitating the flow of funds from savers to entities that require capital for growth and development.

primary market

high wages

Job stability refers to the likelihood that an individual will retain their current employment position over time, often influenced by economic conditions, industry trends, and organizational practices. It is a crucial factor for personal financial security and can impact employee morale, productivity, and long-term career planning.

job stability

opportunities for advancement

The secondary market is where investors buy and sell securities they already own, allowing for liquidity and price discovery in financial markets. It is crucial for maintaining market efficiency and provides a platform for investors to exit their investments or adjust their portfolios.

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