LABOUR MARKET SEGMENTATION theory offers a useful framework for considering the pattern of worker participation in the construction industry.
Consequently, viewing construction labour market dynamics through the lens of labour market segmentation theory has the potential to reveal new insights into the industry and its practices.
Mitchell and McDade (1992) reconsider the market segmentation theory
by focusing on property and liability insurance companies and find strong evidence of market segmentation.
The findings of this study support the market segmentation theory
since AAA-rated insured bonds had the lowest yield relative to uninsured BBB-rated bonds.
Also, the aggregation problems (that is, whether the aggregation should be done on the basis of similarity of elasticities, marginal responses, or response function coefficients) of normative market segmentation theory (Tollefson and Lessig, 1978) are some of the factors that complicate the practical implications of market segmentation studies.
(1978), "Aggregation criteria in normative market segmentation theory", Journal of Marketing Research, Vol.
"Labor Market Segmentation Theory
: Reconsidering the Evidence.' Unpublished manuscript, University of California-Berkeley and Boston University.
Contending that "the human capital perspective has not fared well," Dickens and Lang urge that labor market segmentation theory
be "taken seriously" by economists and argue that it deserves an important position in the economist's toolbox.
The authors note that their main purpose is the elaboration of the market segmentation theory
and its implications.
Conventional labor market segmentation theory
suggests that secondary segment workers may not be prevented from nonemployment mobility simply based on job tenure.