Segmented Labor Market Models in Developing Countries

Gary S. Fields

in The Oxford Handbook of Philosophy of Economics

Published in print March 2009 | ISBN: 9780195189254
Published online September 2009 | e-ISBN: 9780199892105 | DOI:

Series: Oxford Handbooks in Philosophy

Segmented Labor Market Models in Developing Countries

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This article is about labor-market models. Its aim is to construct models that are as simple as they can be but as complicated as they need to be. Such models, if carefully done, can contribute to an understanding of observed labor market phenomena and to the formulation of sound labor market policies. Some branches of economics work with models that assume that everybody who works participates in a single, undifferentiated labor market. This article regards such models as grossly unrealistic. The notion of labor market segmentation can be stylized most simply by maintaining that there are two labor market segments. In this article, labor markets should be thought of as consisting not only of wage and salaried employment but also of self-employment. All who work or seek to work in labor markets are termed workers.

Keywords: labor-market models; labor market phenomena; labor market policies; salaried employment; self-employment

Article.  13695 words. 

Subjects: Philosophy of Science ; Social and Political Philosophy

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