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The segmented labour market theory - Essay Example

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This research aims to evaluate and present the segmented labour market theory. It is a theory which looks at immigration as a demand driven part of the economic structure of developed industrial countries built in tendencies in modern capitalism led to a segmented labour market…
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The segmented labour market theory
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It is evident from the study that there is a primary sector which produces jobs that have a secure tenure, good benefits, with better working conditions, while a secondary sector is full of instability, limited benefits, and hazardous working conditions with low pay. Thus, workers in industrialised nations do not want the secondary sector jobs, resulting in employers looking for recruits among immigrants to fill the rejected positions. This secondary sector has little mobility options that impact negatively on educational returns, skills, base and working experience as compared with nations.

This has been evidenced by educated Mexicans with skills who have migrated internally rather than into the United States as immigrant labour thus this only changes during periods of financial crisis. The above theory can be related that throughout American history, the ambitious and unsatisfied always had an economic theme giving them reason to immigrate to another place. The first three countries of European settlement was evidenced by an outward mobility, i.e. getting immigrants to the continent, thereafter the frontier to develop it.

After the disappearance of the frontier in the 19thC, foreign conquest continued for example acquisitions of places like Cuba, and the Philippines etc. Late 19thC i.e. from the late 1590s into 1960s due to industrialisation, internal mobility was witnessed i.e. from the rural areas to the cities beginning in the industrial worth then the South with health accumulation and plenty of white collar jobs, movements were from the cities into the suburbs. An aging population moved from the colder regions into the warmer climes.

Creating attendant jobs in the construction, restaurants, retail and healthcare industries After the cold war, mobility has tended to stagnant as there has been a wide stagnation in the economic growth of the country. The previous decade witnessed the devaluation of most mortgages resulting in majority owning houses that are not worth the mortgage paid for initially. This segmented the country into the so-called I presenters against the 99ers. But in reality the segmentation has been into two classes: the immobile and mobile.

This classification is due to the industrial vibrantly; in the 1870s young people want to Chicage, 1910s people want to Detroit while 1970s movement was to Housen. This were characterised by; cowboys, the auto industry and the oil industry. The cities had industries that could after both skilled and unskilled people ample work. Nowadays due to the decline in industrial activities, mobility tends to be zero. The tech industry still offers jobs to the highly skilled although recruitment in those high tech industries like Silicon Valley computers, Raleigh-Dusham-bio- tech research is global recruitment for people with specific skills (www.nytimes.com/2012/01/22/.

/adam-davidson-mobile-class.html) These high tech industries afford the mobile class good salaries and high bargaining power. The immobile class is constituted by citizens with less specialization; therefore the only jobs are the low paying ones in the declining auto-industry and green energy clusters. The difference in the immobile class now that most are educated to a degree level i.e. B.A. degree meaning a degree especially one not from the top universities does not guarantee a job, but rather with specific skills one has.

This has coalesced graduates of mid level colleges into a pool defined into a secondary segment. It leaves problems

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