[3] 19th-century Irish political economist John Elliott Cairnes referred to this phenomenon as that of "noncompeting groups".
Non-market institutions such as craft unions and professional associations affect employer strategies, producing different results for workers with similar characteristics.
The idea of non-competing groups developed under the general label of labor market segmentation theory.
These workers are unable to switch between occupations because they require different skills and investment in training and qualifications.
Geographical labor markets emerge because of the costs and disruption workers incur in changing locations.
Cultural differences such as preferences for leisure time versus work may follow geography.
[5] Geographical segmentation also occurs on a global basis, specifically between developed and less-dedeveloped countries.
However, when labor migrates to developed countries, migrants tend to remain within their original segment, receiving less compensation than native workers.
The primary sector generally contains the higher-grade, higher-status, and better-paid jobs, with employers who offer the best terms and conditions.