Labor Market Segmentation

Labor market segmentation refers to the division of the job market into distinct subgroups, where different rules and outcomes apply. For example, one group may have stable, well-paying jobs with benefits, while another may face temporary, low-wage positions without security. These segments can be influenced by factors like education, industry, or location. Understanding segmentation helps policymakers and organizations address inequalities and develop targeted strategies to improve job opportunities and economic growth for all workers, not just those in the more favorable segments.