Labor market segmentation indicates that all workers in the secondary labor market have equal job insecurity and low wages, regardless of their specific roles or industries.

Labor market segmentation is a theory that explains how jobs are divided into different categories, mainly the primary and secondary labor markets. In the secondary labor market, workers often experience job insecurity and low wages, which means they have less stability and earn less money compared to those in the primary market. This situation occurs because jobs in the secondary market tend to be less skilled and offer fewer benefits, leading to similar experiences for all workers, regardless of their specific roles or industries. For example, a cashier in a fast-food restaurant and a warehouse worker might both face low pay and uncertain job prospects, highlighting how segmentation affects their work lives. Therefore, while their jobs are different, the overall conditions they face are quite similar due to their placement in the secondary labor market.