What is a dual labor market
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What is a dual labor market

The omnibus job creation bill has become a topic of much discussion, from factory workers to office workers. This bill is considered unfavorable to workers and takes away rights that previously existed. I will not discuss the details of the controversy over the Job Creation Bill in this article. But I’m more interested in a discussion of a theory of the workers’ world called dual labor market. Why is this theory interesting, because when talking about workers and laborers, this theory doesn’t seem to sell and is never mentioned. In fact, this theory can describe the structure of workers in a country and the impact of regulatory policies on workers from the perspective of this theory.


Contents

The dual labor market as a theory

In the early 1970s, Michael Piore and Peter Doeringer conducted research on the structure of a country’s economy. They found that there were two sectors in the national economy, the first sector consisted of educated blue-collar workers from similar backgrounds, the second sector consisted mainly of women, migrant workers and those whose jobs could be easily replaced. This segregation is what Piore and Doeringer would later call “dual labor market”.

By definition dual labor market refers to a theory according to which the labor market (laboratory market) is divided into two categories, the primary sector and the secondary sector. Primary sector workers have jobs with good incomes, good roles, good company status, secure careers with clear career paths. The secondary sector, on the other hand, has low or minimal income, a poor work environment, can be easily fired, and there is no clear career path.

The characteristics of workers in the two sectors are also different. The primary sector is generally occupied by those who have a good educational background, a good family social status and a good living environment. On the other hand, the secondary sector is generally occupied by those who have a poor academic background.

A dual labor market from an economic point of view

Dual labor markets play an important role in the economy. The dual labor market illustrates supply and demand for jobs under certain economic conditions. Countries with good economic conditions tend to have balance in the chain provide and demand on laboratory market. Meanwhile, countries with poor economic conditions typically have deep imbalances. supply and demand on laboratory market. Can occur request which is too high but which is not accompanied by provide what is insufficient, or vice versa provide there are many but there are none request sufficient. The latter can have a very negative impact on the economy. There are many factors that cause this phenomenon, including the demographics of the population, the education level of the population, and policies relating to expatriate workers in a country.

Dual labor market in Indonesia

In the conditions of Indonesia laboratory market not as simple as conditions in America. Maybe the same but the model made dual labor market too simple to describe laboratory market in Indonesia. Simply laboratory market in Indonesia can be classified into three:

  1. White-collar sector
  2. Blue collar sector with union protection
  3. The informal sector of workers does not benefit from union protection

This second and third grouping of sectors is very important to be able to describe the Indonesian economy. These three categories are not the same between regions in Indonesia. Therefore, the policies developed should also pay attention to the conditions of each region.

The first sector has the same characteristics as the primary sector in dual labor market theory. Workers in this sector have good education, job protection, sufficient income and a clear career path.

The second sector is characterized by a diversity of training, ranging from good to fairly good. The income of workers in this sector is generally low, at the minimum income level of a region, with a clear career path. Workers in this sector generally benefit from the protection of unions in order to become owners voice if you have an opinion on getting better rights in your job.

The third sector generally has weak educational characteristics. Incomes in this sector are generally low, below the minimum income. Since most work in the informal sector (without clear business status), workers in this sector do not benefit from protection from unions. unable to speak whatever we do to them. Workers in this sector therefore have no career path. Most workers only work to survive. Unfortunately, workers in this sector are often spared social security due to their economic status which is that of beneficiary social security.

When discussing policies regarding workers, policymakers must understand that Indonesia has a third sector. The size of this third sector may require further research/study. However, if this third sector is important but does not have the ability to influence policy, then economic policymaking in a country/region may be inappropriate and take the wrong steps. It is dangerous because the portion is the largest laboratory market those who run the economy don’t even make their voices heard.


This is what this article says, I hope it will be useful and happy Coding Functioning!

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