ABSTRACT
Introduction Chapter 2 outlined the segmented nature of the European 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 homogenous (this is 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
Aim To provide the conceptual and theoretical underpinning that is necessary to develop a critical analysis of both the differentiation which exists within the labour market outlined in Chapter 2 and of diversity policies and practices, which will be discussed in Part Two.
