"Labor mobility and relative wage flexibility in parts of the
segmented labour market provide adjustment means from a political economy perspective.
We think a range of structural weaknesses centering on the
segmented labour market could cap growth over the long term.
In its most recent review of the economy of Saudi Arabia, the International Monetary Fund (IMF) warned late last year that generating private sector employment for nationals, without severely impacting competitiveness, requires tackling the underlying distortions in what is a highly
segmented labour market. Saudi nationals account for only about 10 per cent of employment in the private sector and large wage differences between Saudis and expatriates.
Segmented labour market theories were all the rage at the time and sociologists arguably made some of the most important contributions to this field of research (Hodson and Kaufman 1982).
The vast majority of sole support parents are women who suffer more than men from the dismantling of social programs because of their disadvantaged position in a gender
segmented labour market. A sole support mother with two children is expected to live on $14,868 a year, which means that she and her children will have to get by on $5.91 per person per day.
This exacerbates the
segmented labour markets we see in countries like Spain, where some workers enjoy highly secure contracts at the expense of others, who have no security at all.
(1) Markets increase regional inequalities; cumulative causation (linked to concentration, centralization, and
segmented labour markets) must be limited without impeding investment and training.
Acknowledging the limitations of this approach, he draws on current research on education, vacancy chains, and
segmented labour markets in order to suggest how industrial organization and education levels within given societies govern the opportunities available to the population, as well as the ability of individuals to take up these opportunities up.