Labor Market

Posted on Jun 22 2019 - 3:24pm by simplinotesadmin

Edmund Phelps has classified labour market in two types:

  1. Structural Market
  2. Unstructured Labour Market

1. Structured Market

Phelps, has defined structured markets and identified their main types of structured labour markets :

a) The market which is for the public employees where the entry and exit can be made by legislation and administration rules.

b) The market which is known as the non-unions labour market in any big organization where all the rules will be made by personnel department.

c) The third type of labour market is where the rules have been formulated considering the collective bargaining agreements and norms of trade unions.

2. Unstructured Labour Markets

Phelps, has identified unstructured labour market where specified rules by any authority have not been formulated but people get the market information through established institutions.

a) In this type of market, people have to attach themselves with any type of the organization and show their connectivity.

b) In this type of market, there are no unions, prescribing their rules, and workers are usually unskilled.

c) Labour is paid according to the piece production rather than time production and not a huge capital have been invested in this type of labour market.

d) Unstructured market is devoid of any fringe benefits and basically for the unskilled and semiskilled workers.

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