ABSTRACT

Introduction The previous chapter outlined the segmented nature of the British labour market, where there is differentiation between groups of employees resulting in unequal outcomes and opportunities. While it is important to recognize that groups within the labour market are not homogeneous (discussed later), some groups on average experience more disadvantage than others. This chapter aims to present the various and competing theories about the structures and processes which give rise to these differential patterns and trends. It draws on both demand-and supply-side arguments, and critically appraises their ability to offer explanations for the segmentation and segregation of the labour market. For utility, a

distinction is made between neoclassical and human capital theories, labour market segmentation theories and social identity theories. It should be recognized that these overlap and interconnect, but the distinction provides a useful classificatory tool for discussion and analysis. This prepares the reader for the discussions at a microlevel in the following chapters, exploring how people within and between different social groups experience discrimination and disadvantage in employment.