The labour market has two sectors: primary and secondary. The primary labour market is typified by high incomes, fringe benefits, job security, and good prospects for upward mobility. This sector may be subdivided into upper primary workers—long-term workers who advance their position as their years of service increase—and lower primary workers who are usually blue collar workers in stable, skilled labour.

The secondary labour market is typified by low incomes, little job security, and little training. There are no rewards apart from wages. Mobility between the primary and secondary markets is very low. These differences are held to derive from the structures of capital. This analysis tends to oversimplify a complex reality.
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