Another approach adopts a distinct methodology and looks over the relationship present between economic structure development and segmented labour markets emergence. In such models inequalities originating are through the system of economics itself (Dickens 2005). Two key theoretical sets have been produced through use of such methodology inclusive of theories on dual labour market and radical theories. Dual labour market systems and their theories look specifically at technology based developments under capitalism or for divergent industrial structure development for explaining labour market segmentation emergency. Most of the particular dale labour market elements are found within economics of orthodox nature. The essential aspect of the dual labour market analysis is its focus over interactions taking place between economic structure developments, technological developments and labour market behaviour pattern. According to Bonacich, it has been argued that antagonism of ethnic nature initially comes from a split market in the labour. In this market two or more distinct working groups racially or ethnically are vie for similar jobs. This is where the total price to the hiring workers employed from a group is essentially low than the hiring cost from other groups (Gallie 1991). He explained this theory to advocate for its elements as well as segmentation of labour market through ethnicities or race with regard to political power and structure in the society instead of prejudice at individual level.
Employers have a preference of hiring cheap labour and do so in absent opposition actively from workers who are highly priced resulting in creation of an antagonism between groups from higher price and lower price. Differences in labour prices have a sociological as well as a political nature rather than being a personal preference matter. This is because, for example, unionized workers enjoying complete rights politically will demand more wages and have more likeliness of resisting prerogatives in comparison to immigrants or non-union workers without document from poor nations (Daniels et al 2006). As per Bonacich, there is likeliness for split labour market outcomes inclusive not only of antagonism but depending over higher priced workers political power. This is a caste type of system in which workers who are lowly priced have restriction to particular profession or complete lower priced group exclusion from labour markets. The theory contends for dynamics among three labour groups inclusive of employers, highly paid labour groups as well as cheap labour systems. Employers have an aim of having cheap labour force which is docile for them so as to effectively compete with other businesses and enhance the return economically. Businesses start dispensing with and undercutting the working class of white collar if they can and this has been done by them when opportunity is given. Labour paid highly is often threatened though cheap labour introduction into their markets with a fear that this will in turn engage in forcing them to leave working place or reducing their level of pay (EOR 1999). If higher paid labour has strength or it possesses resources allowing power then they have the ability of preventing their replacement or undercut through cheap labour by exclusion based movements or caste system creation. Cheap labour furthermore is utilized through employers for undermining the position of highly expensive working force through under cuts or strikes being broken. Usually, cheaper labourers are not skilled but their training can be provided.
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