Technological Progress with Segmented Labor Markets

Authors


  • The authors are grateful to an anonymous referee for helpful comments on an earlier version of this paper. The usual disclaimer applies.

Beladi: Department of Economics, College of Business, University of Texas at San Antonio, One UTSA Circle, San Antonio, TX 78249, USA. Tel: +1-210-458-7038, E-mail: hamid.beladi@utsa.edu. De la Vina: University of Texas at San Antonio, One UTSA Circle, San Antonio, TX 78249, USA. Marjit: Centre for Studies in Social Sciences, Calcutta, India.

Abstract

It is argued here that with segmented labor markets, all types of technological progress in the fixed wage organized sector always hurts the unorganized or informal workers. However, such technical progress in the informal sector always helps the informal workers. This result is independent of the factor intensity ranking between the sectors.

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