Labour Market Segmentation Theory Term Paper Example | Topics and Well Written Essays - 250 words

Labour Market Segmentation Theory - Term Paper Example 56-60). Labor market segmentation theory is actually one of neo-classical economic theories. According to the neoclassical economists, there is a labor market, which is similar to other markets with sellers and buyers in open competition with one another. It is different from the other markets in some ways. It is a universal fact that labor is not a homogeneous commodity, when it comes to the interests and choice between work and leisure it varies from worker to worker, have different tastes for monetary rewards as opposed to non-monetary rewards (Toft, pp. 36-44). In a labor market, neither the employer nor the workers can move from one place to another without incurring certain costs. It results in wages remaining high in cities that are big even when there are many workers unemployed when other parts of the country are taken into account. Local labor market is a term that often comes under utilization to refer to the market with jobs restricted to a particular locale it can be a t own or a city. Where employers in different industries require certain skills and wish to keep workers once the workers are equipped with certain skills industrial labor markets arise (Toft, pp. 25-30).