Dual Labor Market - Definition & Meaning

Published in Human Resources Terms by MBA Skool Team

What is Dual Labor Market?

Dual Labor Market is a concept that separates the jobs in the labor market into Primary and Secondary Sectors. The primary sector is characterized by jobs with good pay and high status along with security in the job. The conditions of working are good and promotional opportunities are plenty. The secondary sector on the other hand is associated with jobs of low-status and low paying packages. With poor working conditions and very less job security, it hardly provides any opportunities of promotion. This separation is done based on different criteria like gender, race, social background etc.

This primary sector is again separated into sub-ordinate and independent primary jobs. Subordinate primary jobs are usually routine-oriented. They enhance the reliability and discipline along with adherence to rules and administration. It encourages the acceptance of firm's goals. The independent primary jobs, on the other hand, needs creativity, pro-active characteristics with standards of professionalism at work.

The employment systems in both the secondary and primary sectors are different from each other. The ability to improve the economic status of a family is drastically limited between these two sectors. The people in the secondary sector are often stuck in this sector and are unable to increase their economic mobility. The underemployment which marks the secondary sector is caused because of the confinement of workers to unskilled jobs who could be trained for skilled jobs at no more than the usual cost.

Hence, this concludes the definition of Dual Labor Market along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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