DEFINITION of Dual labour market
The Dual labour market theory divides the economy into two parts, called the “primary” and “secondary” sectors. The distinction may also be drawn between formal/informal sectors or sectors with high/low value-added.
The secondary sector is characterised by short-term employment relationships, little or no prospect of internal promotion, and the determination of wages primarily by market forces. In terms of occupations, it consists primarily of low or unskilled jobs, whether they are blue-collar (manual labour), white-collar (e.g. filing clerks), or service jobs (e.g. waiters). These jobs are linked by the fact that they are characterized by “low skill levels, low earnings, easy entry, job impermanence, and low returns to education or experience.”