Secondary labor market
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. The majority of service sector, light manufacturing
, and retail
jobs are considered secondary labor.
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 commodity 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.
Part time
A part-time job is a form of employment that carries fewer hours per week than a full-time job. Workers are considered to be part time if they commonly work fewer than 30 or 35 hours per week...
and/or temporary jobs. Sometimes, secondary jobs are performed by high school
High school
High school is a term used in parts of the English speaking world to describe institutions which provide all or part of secondary education. The term is often incorporated into the name of such institutions....
or college
College
A college is an educational institution or a constituent part of an educational institution. Usage varies in English-speaking nations...
students. The majority of service sector, light manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
, and retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
jobs are considered secondary labor.
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
Classical economics
Classical economics is widely regarded as the first modern school of economic thought. Its major developers include Adam Smith, Jean-Baptiste Say, David Ricardo, Thomas Malthus and John Stuart Mill....
and
neo-classical economists
Neoclassical economics
Neoclassical economics is a term variously used for approaches to economics focusing on the determination of prices, outputs, and income distributions in markets through supply and demand, often mediated through a hypothesized maximization of utility by income-constrained individuals and of profits...
conceived of the labor market as a commodity 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
Human capital
Human capitalis the stock of competencies, knowledge and personality attributes embodied in the ability to perform labor so as to produce economic value. It is the attributes gained by a worker through education and experience...
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.