One Firm, Two Labor Markets: The Case of Mcdonald's in the Fast-Food Industry

Abstract

Students of industrial sociology have noted theoretical and empirical inadequacies in dual-economy and dual-labor market theories, and have called for revisions in these perspectives. A single case, McDonald's in the fast-food industry, is analyzed as a vehicle towards reformulation. It is argued that, as a center retailer, McDonald's contains elements of both primary and secondary labor markets, and that this dualism is a partial function of its economic structure that contains both core and peripheral elements. The job hierarchies, hiring practices, compensation, training, and control systems all evidence elements of both primary and secondary markets. The external validity of these findings is explored, and implications for dual-economy and dual-labor market theories and research are developed.