UNIT 4: SOCIOLOGY OF LABOUR MARKETS


One of the basic questions for sociologists is who gets access to interesting jobs, high incomes, high-status professions, and top decision making positions in organizations. Asking this and other questions about inequality guided our discussion of labour market trends, in Unit 3. Unit 4 tries to provide more comprehensive answers to these questions by explaining how labour markets operate to create and perpetuate inequalities. We begin by considering what constitutes a "good job", the crucial resource that seems to be in chronically short supply in the labour market. This prompts analyses of the labour market structures and processes which open the doors leading to good jobs for some groups in society, while closing these doors for others. The Unit considers different theories of how labour markets operate: human capital theory, theories of social mobility and status attainment, and labour market segmentation theory. The reading assignment assesses how adequately each accounts for the emergence and persistence of inequalities. Particular attention is focused on how specific groups -- namely women, native Canadian, persons with disabilities, and visible minorities -- historically have been disadvantaged in the labour market.

Unit Objectives

After completing this unit, students should be able to:
  1. Define the major differences between good and bad jobs.
  2. Outline the human capital model of the labour market, comparing and contrasting it with other theoretical perspectives, particularly labour market segmentation theory.
  3. Evaluate the role of education in determining an individual's success in the labour market.
  4. Assess the insights derived from status attainment and social mobility research about how labour markets operate.
  5. Discuss the strengths and weaknesses of labour market segmentation theory.
  6. Document the kinds of discrimination which specific groups (e.g., visible minorities, disabled individuals, aboriginal persons, and women) have faced in the Canadian labour market.

Readings (85 pages)

Krahn and Lowe, Work, Industry and Canadian Society:

Lowe and Krahn (eds.), Work in Canada: Readings in the Sociology of Work and Industry:

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Section 1: Defining Good and Bad Jobs

Thought Questions

As you read, keep the following questions in mind:
  1. What are the various approaches taken by sociologists to examine the inequalities created in the labour market?
  2. How does this section help to enlarge your view of what defines a "good" job?

Reading Assignments

Krahn and Lowe, Work, Industry and Canadian Society:

Key Concepts

To review key concepts encountered through the reading, prepare your own explanations of each of the following. Sometimes it is useful to compare related terms, as indicated.

Study Questions

When you have completed the assigned reading, test your understanding of the material by answering the following study questions.
  1. Define the concept of a labour market, and identity other institutions and organizations that interact with it.
  2. Document the major differences in occupational rewards, in terms of income and fringe benefits.
  3. Discuss the evidence on the gender-based wage gap presented in Figure 4.1 on page 111 of the textbook.
  4. Assess the long-term pattern of income inequality in Canada.
  5. Explain how Blishen scores measure socioeconomic status.
  6. Outline the alternative measures for socioeconomic status.

Practice Exercise

We began pursuing the question of employment differences in Unit 2 by using the rather crude distinction between good jobs and bad jobs. Now you have become familiar with many labour market trends that document differences in employment, and also have an understanding of analytic concepts used (such as class, nonstandard jobs, socio-economic status) to analyze these distinctions. To help you assess and assimilate this information, it would be timely to pull together these pieces of evidence and concepts into your own comprehensive definition of good jobs and bad jobs. Try to make your distinctions between these two general categories of jobs as detailed and thorough as possible.

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Section 2: Human Capital and Occupational Success

Thought Question

As you read, keep the following question in mind:
  1. What role does education play in determining a person's success in the labour market?
  2. What other factors determine who gets the better jobs?

Reading Assignments

Krahn and Lowe, Work, Industry and Canadian Society:

Key Concepts

To review key concepts encountered through the reading, prepare your own explanations of each of the following. Sometimes it is useful to compare related terms, as indicated.

Study Questions

When you have completed the assigned reading, test your understanding of the material by answering the following study questions.
  1. Summarize the basic arguments of human capital theory.
  2. Explain how a person's social class origins influence her or his educational aspirations and how, in turn, these aspirations are related to educational attainment.
  3. Explain how higher educational and occupational aspirations tend to translate into higher occupational attainment.
  4. Discuss what the concept of cultural capital tells us about the reproduction of class inequalities in society.
  5. Evaluate to what extent Canada is an open or a closed society, in terms of the degree of social mobility that occurs.
  6. Discuss how status attainment research provides evidence both for and against a human capital model of the labour market.

Practice Exercise

Take each of the theoretical perspectives presented in this Section and identify its key argument about who gets ahead. Now draw on your own social circles to compare and contrast the usefulness of each perspective in accounting for inequalities in Canadian society. Which model best accounts for how your acquaintances, friends and family members achieved their present educational or occupational status? Would a combination of some of these theories provide a fuller analysis?

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Section 3: Segmented Labour Markets

Thought Questions

As you read, keep the following questions in mind:
  1. How are labour markets organized, or "structured", to create good jobs with restricted access?
  2. How do various kinds of secondary labour market segments, as described in the readings, contribute to social inequality?

Reading Assignments

Krahn and Lowe, Work, Industry and Canadian Society:

Lowe and Krahn (eds.), Work in Canada: Readings in the Sociology of Work and Industry:

Key Concepts

To review key concepts encountered through the reading, prepare your own explanations of each of the following. Sometimes it is useful to compare related terms, as indicated.

Study Questions

When you have completed the assigned readings, test your understanding of the material by answering the following study questions.
  1. Explain how the labour market segmentation perspective rejects the core assumptions of human capital theory.
  2. Discuss the dual economy model's analysis of why some industries offer good employment conditions and high wages.
  3. Describe how Reiter's study of Burger King (pages 130-131 of the textbook) illustrates the dual economy model's concept of employment in a secondary labour market.
  4. Define an internal labour market and give three major examples.
  5. Document the various ways professions create and maintain sheltered labour markets for their members.
  6. Outline Calliste's analysis, in her article on black sleeping car porters, of how race (or ethnicity) is used as a basis for building inequality into the railways' systems of employment.

Practice Exercise

Using the studies by Reiter, reported in the textbook on pages 130 to 131, and Calliste (in her article in Work in Canada) as models, pick an occupation or a workplace you are familiar with and imagine conducting a similar study. What theoretical concepts and insights from the readings in this section would be good analytic tools? Does the case you selected lend further support to a labour market segmentation model of how the labour market operates?

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Section 4: Labour Market Barriers and Discrimination

Thought Questions

As you read, keep the following questions in mind:
  1. How significant a problem is labour market discrimination in Canada?
  2. What government and employer policies could reduce or eliminate the barriers faced by the visible minorities, the disabled, and native people?

Reading Assignments

Krahn and Lowe, Work, Industry and Canadian Society:

Lowe and Krahn (eds.), Work in Canada: Readings in the Sociology of Work and Industry:

Key Concepts

To review key concepts encountered through the reading, prepare your own explanations of each of the following. Sometimes it is useful to compare related terms, as indicated.
  • structural labour market barriers
  • marginal work world
  • forms of employer discrimination
  • student labour market
  • racial discrimination
  • racial conflict
  • employment equity policies
  • discriminatory behaviour versus discriminatory attitudes
  • integrating employees with disabilities
  • costs versus benefits of development projects for native Canadians
  • native employment as tokenism

    Study Questions

    When you have completed the assigned readings, test your understanding of the material by answering the following study questions.
    1. Describe how geography can create barriers to mobility out of secondary labour market segments.
    2. Explain how age, gender, disability, or race can be the basis for excluding individuals with these characteristics from primary labour markets.
    3. Assessing the evidence presented in the textbook on pages 137 to 138 and in Reitz's article in Work in Canada, .what is the extent of racial discrimination in Canada?
    4. Discuss why Reitz, in his article in Work in Canada, argues that there is less racial conflict in Canada compared with Britain.
    5. Identify the most effective ways of integrating disabled employees into the workplace, based on McKay's discussion in her article in Work in Canada.
    6. Analyze the overall impact of development projects on native employment, using the material presented by Waldron in his article in Work in Canada.

    Practice Exercise

    What is your assessment of the extent of discrimination in your local labour market. Which groups are discriminated against, and how does this discrimination occur? Do you see any way of constructively addressing this problem?

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    Section 5: Segmentation and Polarization

    Thought Questions

    As you read, keep the following questions in mind:
    1. How does a labour market segmentation perspective contribute to our understanding of the changing patterns of inequality in society?

    Reading Assignments

    Krahn and Lowe, Work, Industry and Canadian Society:

    Key Concepts

    To review key concepts encountered through the reading, prepare your own explanations of each of the following. Sometimes it is useful to compare related terms, as indicated.

    Study Questions

    When you have completed the assigned readings, test your understanding of the material by answering the following study questions.
    1. Outline Gordon, Edwards and Reich's (on page 139 of the textbook) thesis regarding the historical decline of class conflict in the United States.
    2. Identify the major new trends in labour market segmentation found in Canada, and relate these to discussions in earlier Units.
    3. Itemize the key criticisms of labour market segmentation theory.
    4. Assess the strengths of labour market segmentation theory in comparison to human capital theory.

    Practice Exercise

    Make a list of the major theoretical perspectives presented in this Unit on a page, leaving a half-dozen blank lines under each theory. Now make your own evaluation of each, based on how well you think it contributes to your understanding of how labour market structures and processes create social inequality. Using these criteria, list under each theory one main strength and one main weakness. Do you see useful ways of combining elements of these theories?

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