Split labor market clarifies racial/ethnic pressures and labor market segmentation by race/ethnicity as far as social structure and political power as opposed to individual-level partiality. Racial threat rises out of a split labor market, where at least two racially/ethnically different groups of laborers strive for similar occupations, and where the aggregate cost to the business (counting wages) of procuring specialists from one group is fundamentally lower than the cost of enlisting from the other gathering. Businesses (or entrepreneurs) like to contract less expensive experts and will do as such missing dynamic resistance from higher-evaluated laborers, making a threat amongst higher-and lower-valued
