Labour Market Segmentation, Flexibility, and Recession: A British Columbian Case Study

Abstract

The purpose in this paper is to examine theories of labour market segmentation within the context of the early 1980s recession, and its immediate aftermath, in British Columbia, Canada. In particular, the conclusions are based on a large sample of firms in the manufacturing, wholesale, and producer service sectors for the period 1981–86. The paper is divided into four parts: First is a review of Doeringer's and Piore's classic presentation of segmentation theory focusing on the Fordist firm, and a comparison of it with more recent statements on labour markets made by Atkinson in connection with his work on the flexible firm. Second is a brief description of the recent changes affecting the economy in British Columbia over the last decade or so. Third, employment change and labour segmentation are examined in terms of occupational, gender, and industry characteristics for manufacturing, wholesaling, and producer service sectors in British Columbia. Last, given that the authors's evidence is in terms of aggregate trends, the fourth section provides three case studies, one drawn from each sector.