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Dual labour markets: A survey

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  • Wapler, Rüdiger

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.

Suggested Citation

  • Wapler, Rüdiger, 1999. "Dual labour markets: A survey," Tübinger Diskussionsbeiträge 166, University of Tübingen, School of Business and Economics.
  • Handle: RePEc:zbw:tuedps:166
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    File URL: https://www.econstor.eu/bitstream/10419/47603/1/575620846.pdf
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    Cited by:

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

    More about this item

    Keywords

    Dual Labour Market Theory; Segmented Labour Market Theory; Unemployment;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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