Advanced industrial economies face a work crisis in creating wage employment in a changing job market without greatly increased job inequality. There is a fundamental conflict between a deregulatory labor-market philosophy and policies intending to use educational expansion to increase employment with higher productivity and wages. Education and…

The study reviews orthodox theories of labor markets, presents new formulations of segmentation theory, and provides empirical tests of segmentation in the United States and several developing nations. Orthodox labor market theory views labor as being paid for its contribution to production and that investment in education and vocational training…