This dualism in production is reflected in the labour market and employment. Peripheral firms, being at the mercy of core firms and market forces, require a cheap and flexible workforce. Because their technology is labour-intensive and productivity and profitability low, employment in peripheral firms is often poorly paid, unskilled and insecure. In marked contrast, core firms require a stable and usually skilled workforce. One response to this need is the creation of internal labour markets (ILMs) which by regulating recruitment, promotion, pay and conditions will reduce labour turnover and secure a stable labour force for the firm. Access to ILMs is often limited to one or two
‘ports of entry’ with subsequent progression up a job ladder being dependent upon the acquisition of skills and experience. Thus employment in core firms is characterized by good pay and conditions, security of employment and a career structure.