IDEAS home Printed from https://ideas.repec.org/a/eme/ijsepp/v34y2007i10p735-740.html
   My bibliography  Save this article

Exogenous technological change and wage inequality in rural India: a theoretical note

Author

Listed:
  • Arindam Banik
  • Pradip K. Bhaumik
  • Sundayo Iyare

Abstract

Purpose - The purpose of this paper is to develop a theoretical model to explore the economic consequences of an exogenous skill-biased technological change. Design/methodology/approach - The paper develops a theoretical model based on assumptions and conditions that replicate those of a government-sponsored poverty reduction programme in India. Findings - The paper finds that, under certain stated conditions, wage inequality between artisans with improved toolkits and those without is likely to increase, while, under a different set of conditions, this is likely to decrease. Research limitations/implications - Actual wage inequality implications of specific exogenous skill-biased technological changes need to be studied to take the theoretical model further. Practical implications - One major implication is that, when government help is provided by way of an exogenous skill-biased technological change to a fraction of workers, it may have the unintended consequence of increasing wage inequality between the beneficiary and the non-beneficiary workers. In extreme cases, it may even lower the equilibrium wages of the non-beneficiary workers. Originality/value - The paper brings out the critical role of efficiency units of workers with skill-biased technology (artisans with improved toolkits) and those without these in determining the wage inequality between these categories of workers (artisans) based on a theoretical model of the trajectory along which the rural economy moves.

Suggested Citation

  • Arindam Banik & Pradip K. Bhaumik & Sundayo Iyare, 2007. "Exogenous technological change and wage inequality in rural India: a theoretical note," International Journal of Social Economics, Emerald Group Publishing, vol. 34(10), pages 735-740, September.
  • Handle: RePEc:eme:ijsepp:v:34:y:2007:i:10:p:735-740
    as

    Download full text from publisher

    File URL: http://www.emeraldinsight.com/10.1108/03068290710816865?utm_campaign=RePEc&WT.mc_id=RePEc
    Download Restriction: Access to full text is restricted to subscribers

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Change management; India; Skills; Labour efficiency;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ijsepp:v:34:y:2007:i:10:p:735-740. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman). General contact details of provider: http://www.emeraldinsight.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.