Secondary labor market
From Wikipedia, the free encyclopedia
The secondary labor market is the labor market consisting of high-turnover, low-pay, and usually part time and/or temporary jobs. Sometimes, secondary jobs are performed by high school or college students with no need to support themselves upon wages earned (since they can live off their parents' incomes). But these jobs are mostly filled by members of ethnic minority groups, women, the disabled, older laid-off workers, and others who face discrimination in their efforts to attain jobs in the primary labor market. The majority of service sector, light manufacturing, and retail jobs are considered secondary labor. These are often called "McJobs".
In sum, secondary-labor jobs are mostly taken by lower-income working people, or the working poor. Earning wages well below subsistence level, often they must work two or three such jobs to avoid financial ruin.
A secondary-market job is distinct from a "secondary worker". The latter term refers to someone in a family (traditionally, the wife or a child) who earns a smaller income than the "bread-winner" in order to supplement the family income.
The existence of the secondary labor market challenges classical explanations of the functioning of the labor market. Classical and neo-classical economists conceived of the labor market as a commodities market: the concurrent interaction of labor supply (rational workers seeking their well-being) and labor demand (rational employers searching to maximize their profits) should determine general employment and wage levels. However, these traditional theories leave unexplained major real-life issues, such as the large differences observed among wages and employment conditions in the current labor market. The Neoclassical school had argued that these differences were due to disparities in workers' productivity based on employees' different human capital endowments, but as critics have pointed out, most of them would be due to institutional factors more than to economic causes. In other words, it is not people that are different but rather job characteristics, and it is not human productivity that is behind the differences but rather market, technical, organizational and political factors. To sum up, there are not "good" and "bad" workers, but "good" and "bad" jobs.
