Question

What factors account for the fact that labor markets are segmented rather than unified?

Answer 1

Difference in the wages rates (different labor market groups) can be reasoned for different productivities where skilled worker is more productive than unskilled. The same is true for Men versus Women. This gender difference suggests Men are paid more because their MPL is higher. Another factor is the discrimination based on statistics, race, gender, and other grounds. The type of work is also one of the factor that is reasoned for the creation for white collar and blue collar jobs.