Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/75782 
Year of Publication: 
2001
Series/Report no.: 
CESifo Working Paper No. 485
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Two trends have marked the politico-economic discussion in many industrialized countries in recent years. On the one hand, international production, workplace decentralization, shareholder orientation and generous manager remuneration have changed the face of firms in the primary economy. On the other hand, there is increased pressure on the secondary labor market revealed by unemployment or declining wages of low-skilled workers. This paper establishes a causal relationship between the two trends by developing a model in which labor market segmentation stems from the fact that organizational labor (management) is a key element in the primary, but not in the secondary economy. We also evaluate the effectiveness of selective immigration policies for high-skilled workers (green card).
Subjects: 
Dual labor market
reorganization of work
organizational labor
international competition
green card
Document Type: 
Working Paper
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