Small Business Glossary and Definitions

Dual Labor Markets (also called segmented labor markets) divide the economy into primary and secondary segments. (These also can be called formal and informal or high-value-added and low-value-added.)

In dual labor markets, the secondary segment involves short-term employment, no or little promotion opportunities and market-set wages. This typically encompasses service industry or other unskilled or low-skilled occupations.

In contrast, the primary segment involves long-term employment, promotional opportunities and career mobility, good working conditions and higher salaries, responsibilities and status.

Some researchers have argued that this division of labor reflects broad-based discrimination, as women and minorities usually are under-represented in the primary labor market.