<u>Split labor market </u>theory argues that higher-priced dominant-group labor uses prejudice and discrimination to limit the ability of lower-priced minority-group labor to compete for jobs.
<u>Explanation:</u>
In the early 1970s, sociologist Edna Bonacich developed the divided labor market hypothesis as an effort to explain racial and ethnic tensions and segmentation of the labor market by race or ethnicity in terms of social context and political strength, instead of just individual discrimination.
It is a sort of conflict hypothesis in that it considers discriminatory practices as a consequence of confrontation among highly competitive interest groups. The company owner or capitalist acknowledges that racial discrimination is corrupt and incompetent for the business organization and chooses not to segregate. The capitalist's aim is to get the best laborer for the cheapest wage, and therefore it is in the hands of the capitalist.
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