Segmented labour markets

Migration is a prominent feature on the debate surrounding segmented labour markets. In most neo-classical models, migration is seen as an equilibrating factor as individuals respond rationally to the comparative incentives of different sectors. On the other hand, migrants are often seen as an identifiable group in the labour market who are either discriminated against or favoured. This discrimination is one factor leading to the emergence of segmented labour markets. Migration pattern itself may raise barriers to competitive forces within urban labour markets - by limiting entry into particular occupations, restricting access to training and influencing wage determination - and hence result in segmentation.