Segmented Labor Market Theories and the Australian Experience of Equal Pay for Women

Abstract

Recently, there has been an upsurge of interest in segmentation and rigidities in labor markets that are associated with relative wages, the job creation process, and access to particular jobs. Reder (1955) and Thurow (1975), for example, have emphasized relative wage rigidities and argued that employment is allocated across industries and occupations by the creation and destruction of job opportunities and not by changes in relative wages. Wages are determined largely by social custom and institutional factors, and queues of workers at each fixed wage constitute the supply curve of labor.

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