Workbook A (Week 4)
Topic:
Segregation and sociological approaches to inequality in organizations
Question 1: Explain the rationale for segregation in the labour market using
either economic or sociological theories?
The justification for labor market segregation finds its roots in a combination of economic and
sociological theories. It is crucial to recognize the intersection of these theories, as economic and
social elements are intertwined in shaping the dynamics of the labor market.
Some important economic and sociological theories are following
Economics theories
• Human Capital Theory
• Discrimination and
Prejudice
• Occupational Crowding
Sociological theories
• Social Capital Theory
• Cultural and Societal
Norms
• Institutional
Discrimination
 Rationale for segregation in the labour market using either economic
The rationale for segregation in the labor market often stems from economic considerations.
Economic theories, such as human capital theory, underscore the importance of skills and
education in determining an individual's productivity and earning potential. Disparities in access
to education and training opportunities lead to certain groups being disproportionately
represented in lower-skilled jobs, thereby contributing to labor market segregation (Blundell et
al., 2021, Williams, 2008). Discrimination and prejudice theory explains that a prevalent
economic factor can also play a significant role in rationale for segregation in the labour market.
Systematic exclusion from higher-paying or prestigious jobs based on factors like race, gender,
or ethnicity perpetuates segregation (Lundahl and Wadensjo, 2015). Occupational crowding
theory explained that segregation in the labour market influence by economic forces like wage
differentials, can result in the concentration of specific groups in particular occupations (Misir,
2021). In essence, economic theories provide insights into how unequal access to education,
discriminatory practices, and occupational dynamics contribute to the rationale behind labor
market segregation.
References
BLUNDELL, R., CRIBB, J., MCNALLY, S., WARWICK, R. & XU, X. 2021. Inequalities in education, skills, and
incomes in the UK: The implications of the COVID-19 pandemic. Institute for Fiscal Studies, 1-42.
LUNDAHL, M. & WADENSJO, E. 2015. Unequal Treatment (Routledge Revivals): A Study in the NeoClassical Theory of Discrimination, Routledge.
MISIR, P. 2021. COVID-19 and Health System Segregation in the US: Racial Health Disparities and
Systemic Racism, Springer Nature.
WILLIAMS, D. R. 2008. The health of men: structured inequalities and opportunities. American journal of
public health, 98, S150-S157.