The early 1970s saw another institutionalist theoretical upsurge intended to explain the persistence of race and gender wage discrimination and the growth of a newly emergent "working poor" category. Reviving and building upon a previous institutionalist concept of internal labor markets (ILMS), two "new institutionalist" labor economists, Peter Doeringer and Michael Piore (1942-), led the effort to tackle those issues. They emphasized two major theoretical issues pertinent to ILMS theory: the growth of job-specific skill training and the notion of a modern "dual economy." In support of their job-specific skill approach, they argued that the development of large manufacturing firms provided the impetus for stable internal labor markets. So structured, firms could minimize the rising costs associated with skill training and worker turnover. Being somewhat sheltered from competitive external labor market pressures, firms could develop mutually beneficial internal job ladders. These would allow experienced workers to reap seniority benefits, be more inclined to stay within the firm, and train new workers.
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