The objective of the research described here is to assess how recent changes in the organization of industry and discrimination in the workplace affect the employment of Latinos. One of the most important developments in labor markets during the past two decades is the erosion of internal labor markets. Employers are responding to intensified competitive conditions that developed during the 1980s: increased international competition in domestic markets and deregulation in telecommunications, banking, insurance, and other industries. The development of information technologies and the diffusion of secondary and postsecondary education have enabled organizations to cut labor costs. In particular, firms are recruiting externally a greater number of workers for positions that once were filled by in-house trainees. A growing number of entry-level jobs have become divorced from internal training and career ladders. The authors conclude that the Latino workforce is affected primarily by the compositional shift of employment away from manufacturing, which has resulted in further concentration of Latinos in farming and service occupations, both of which entail low wages and few benefits. Additionally, the erosion of internal labor markets will probably result in even further diminished opportunity through seniority and experience for Latino incumbent workers who might have a chance at internal labor markets, in reduced numbers of job opportunities for future cohorts, and in the rise of part-time and temporary work.



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