... we can look at is real wage rigidity. Real shocks, which shift the marginal product of labour, may alter employment but leave the real wage unchanged. In other cases, shocks will have an impact on the real wage but not sufficiently to leave unemployment unaltered. Dual labour markets may induce unemployment because of wage differentials and differences in overall quality of jobs between sectors. The primary labour market are where all the "good" jobs are, (i.e. with large companies like Microsoft), with such characteristics as job security, stability, high and rising wages and good opportunities. Compare this to "bad" jobs, (i.e. restaurant jobs), that the secondary sector offers, where there is high worker turnover, low wage rates and few job ladders/opportunities. It is little surprise that people would rather remain unemployed and wait for a primary sector job opening. Theorists emphasising the importance of unemployment due to the frictions of ...

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