ABSTRACT
This chapter offers a succinct review of segmentation theory and to indicate its usefulness in explaining contemporary labor market problems. It explores some of the many linkages between segmentation theory and institutionalist analysis. The chapter focuses on some of the ways that segmentation theory is useful in comprehending labor market problems and designing ameliorative policy. It discusses some commonalities and elaborates the distinctive elements in the dual and segmentation approaches. Dual and segmented approaches share common heritage, time frame, and set of concerns, but differ in underlying causal arguments. The dual hypothesis resulted in a "theory" of segmentation founded on competitive difference, which viewed segmentation as an arguably aberrant deviation from some optimum and offered limited guidance for public policy. The chapter provides a brief summary of the several key elements of segmentation theory. Segmentation theorists advanced labor analysis by focusing attention on actual processes of production, and of learning and training on the job.
