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Technological progress and wage inequality in an economy with a segmented labor market

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  • Shigemi Yabuuchi

    (Aichi University)

Abstract

We examine the effect of technological progress on the wage gap between skilled and unskilled labor. Furthermore, we apply Beladi et al.'s (2012) analysis of technological progress and informal workers to the problem of wage inequality between skilled and unskilled labor. We conclude that technological progress in the organized sector will harm informal workers, while progress in the unorganized sector will benefit them. Additionally, we find that the effect of labor-saving technological progress on the wage gap depends on the industries' relative factor intensities.

Suggested Citation

  • Shigemi Yabuuchi, 2015. "Technological progress and wage inequality in an economy with a segmented labor market," Economics Bulletin, AccessEcon, vol. 35(3), pages 1992-1999.
    • Handle: RePEc:ebl:ecbull:eb-15-00256
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Technological progress; Wage inequality; Skilled and unskilled labor;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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