The Role Of Employers In Split Labor Market

Split labor markets are a complex part of our global economy, but absolutely essential one. It is the way we can ensure that employers have access to the right talent they need while ensuring workers receive fair wages and working conditions.

But what role do employers play in split labor markets? This blog post will explore the various roles employers have in this type of market, from paying wages to providing benefits and more.

What Is A Split Labor Market?

A split labor market is an economic system where two distinct groups of workers are employed in different sectors of the economy, with one group receiving higher wages and better working conditions than the other. For example, in the U.S., low-wage jobs are typically found in service industries such as hospitality, retail, and food service, while higher-wage jobs are typically found in manufacturing and technology.

Employers play a major role in maintaining and shaping split labor markets. Employers have the power to set wages, create job requirements, and determine working conditions for their employees. By paying higher wages to skilled workers and providing better working conditions, employers can attract more qualified and experienced workers. Conversely, by underpaying low-wage workers and providing subpar working conditions, employers can limit the number of qualified workers willing to take on low-wage jobs.
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What Is The Difference Between Primary And Secondary Labor Markets?