Labor market segmentation

Labor market segmentation is the division of the labor market according to a principle such as occupation, geography and industry.

One type of segmentation is to define groups "with little or no crossover capability", such that members of one segment cannot easily join another segment. This can result in different segments, for example men and women, receiving different wages for the same work. 19th-century Irish political economist John Elliott Cairnes referred to this phenomenon as that of "noncompeting groups".

A related concept is that of a dual labour market (DLM), that splits the aggregate labor market between a primary sector and a secondary sector.