In creating the most systematic conceptual scheme for studying labor market segmentation since Doeringer and Piore (1971), Althauser and Kalleberg (1981) argued that job security, prospects for advancement, and job control were the three foundations for a typology of labor markets. In their view, an internal labor market (ILM) was best defined as “a cluster of jobs, regardless of occupational titles, or employing organizations, that have three basic structural features: (a) a job ladder, with (b) entry only at the bottom, and (c) movement up this ladder, which is associated with a progressive development of knowledge and skill” (p. 130). The four possible pairings of type of control with prospects for advancement produced four different categories of labor market structures: (a) firm internal labor markets (FILM), which are internal labor markets controlled by firms, (b) occupational internal labor markets, which are internal labor markets controlled by occupational incumbents, (c) firm labor markets (FLM) or jobs with firm-specific security but without advancement prospects, and (d) occupational labor markets or jobs with occupational security but without advancement prospects. In describing internal labor markets and occupational labor markets further, they argued that “some holders of FLM jobs originally enter FILM job ladders but either level off or for other reasons do not progress all the way up the ladder” (p. 135). The jobs these workers have, which exist at many levels and “parallel” firm internal labor market and occupational internal labor market job ladders, constitute the firm or occupational labor market.
KeywordsLabor Market Gray Zone Lower Tier Entry Port Empirical Phenomenon
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