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Dual labour markets: A survey

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  • Wapler, Rüdiger
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    Abstract

    Whereas the standard modern theories of unemployment were developed in the context of a single sector labour market, this paper presents a survey of how these theories can be integrated into a dual labour market setting. This approach dichotomises the labour market into two sectors, a primary with high wages and high job security, and a secondary sector with lower wages and higher labour turnover. The survey consists of three main parts. Part one applies standard labour market theories to dual labour markets. Part two extends this setup by introducing uncertain product demand. Finally, in part three, open economies are discussed. It is shown that dual labour market theory is an important contribution to understanding unemployment and therefore a useful extension of standard labour economics. --

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    Bibliographic Info

    Paper provided by University of Tübingen, School of Business and Economics in its series Tübinger Diskussionsbeiträge with number 166.

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    Date of creation: 1999
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    Handle: RePEc:zbw:tuedps:166

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    Related research

    Keywords: Dual Labour Market Theory; Segmented Labour Market Theory; Unemployment;

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    Cited by:
    1. Stadler, Manfred, 2003. "Innovation and growth: The role of labor-force qualification," Tübinger Diskussionsbeiträge 255, University of Tübingen, School of Business and Economics.
    2. Manfred Stadler & Rüdiger Wapler, 2004. "Endogenous Skilled-biased Technological Change and Matching Unemployment," Journal of Economics, Springer, vol. 81(1), pages 1-24, 01.

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