📚 Learning Guide
Labor Market Segmentation
hard

A company is hiring for two types of positions: one requires a college degree and offers a high salary with comprehensive benefits, while the other requires only a high school diploma, providing minimal benefits and lower pay. Which categories do these positions belong to in the context of labor market segmentation?

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Choose the Best Answer

A

Primary labor market and secondary labor market

B

Tertiary sector and primary labor market

C

Secondary labor market and informal labor market

D

Primary labor market and informal labor market

Understanding the Answer

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Answer

In the context of labor market segmentation, the two positions described belong to different segments based on their requirements and rewards. The job that requires a college degree and offers a high salary with comprehensive benefits is part of the primary labor market. This segment usually has better job security, higher wages, and more advantages, attracting individuals with higher education. On the other hand, the position that only requires a high school diploma falls into the secondary labor market, where jobs often have lower pay and fewer benefits, leading to less job security. For example, a teacher might work in the primary market with a degree and stable income, while a retail worker might find themselves in the secondary market with less pay and fewer benefits.

Detailed Explanation

The primary labor market has jobs that need more education and pay well. Other options are incorrect because This mixes job types incorrectly; The informal labor market includes jobs that are not officially recognized, like babysitting.

Key Concepts

Labor Market Segmentation
Primary and Secondary Labor Markets
Economic Sectors
Topic

Labor Market Segmentation

Difficulty

hard level question

Cognitive Level

understand

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