Summarize the theory of split labour market. Give an example.

The theory of split labor market, proposed by sociologist Edna Bonacich, suggests that the labor market is divided into two segments: the primary sector and the secondary sector. The primary sector consists of high-paying, stable jobs with opportunities for advancement, while the secondary sector consists of low-paying, unstable jobs with little to no opportunity for advancement.

This division is often based on factors such as race, ethnicity, gender, and immigration status, with marginalized groups being disproportionately represented in the secondary sector. Employers in the primary sector benefit from this division by being able to pay lower wages and offer fewer benefits to workers in the secondary sector, while also using the threat of outsourcing to keep primary sector workers in line.

An example of the split labor market theory in action can be seen in the agricultural industry, where migrant workers are often employed in low-paying, temporary positions while non-migrant workers are more likely to hold higher-paying, permanent positions with opportunities for advancement. This division allows employers to exploit the vulnerable position of migrant workers and maintain a cheaper labor force.