THE DUAL ECONOMY.
Many developing counties have t largely separate economics. One traditional economy of poor peasants consuming most of what they produce and selling little on the market. The other is a modern, cash economy in which people produce the market. Mobility In the modern sector may be rapid even while the traditional sector is stagnant or declining. Some scholars believe that the United States and other industrialized societies also have a dual economy. The favored service and the highly capitalized, semitone politic industries with a labor force. This sector pays high Income. and gives more fringe benefits. The less-favored sector consists of highly competitive, labor-intensive industries and businesses, frequently nonunion, with low wages and fewer fringe benefits. Thus, auto workers and steelworkers make high wages, not because of superior skill, ability ox rang but because they are in high 61 tries. Whether this will continue to upon future changes in technology, world trade, and other factors. There a so are many low-wage industries and businesses, such as furniture factories, restaurant and many others. One's mobility depend to some success in getting into one, favored sectors of the economy [Sorer son and Tuma, 1981; Jacobs, 1982]. Just why automobile assembly workers should be paid twice as much as textile or furniture file Tory workers is difficult to explain on any rational basis other than bargaining power. Conflict theory fits this case better than functionalist theory.
