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Technology, trade and ‘urban poor’ in a general equilibrium model with segmented domestic factor markets

Technology, trade and ‘urban poor’ in a general equilibrium model with segmented domestic factor markets
Technology, trade and ‘urban poor’ in a general equilibrium model with segmented domestic factor markets

Drawing on the evidence from Indian provinces, this paper, using a four-sector general equilibrium model with segmented domestic labour and capital markets, proposes that factor-specific technological progress only in the capital-intensive segment of the urban formal sectors may affect the urban informal workers adversely, while a trade induced progress in the vertically integrated skill-intensive formal sector benefits them. The numerical analysis further illuminates the importance of credit-product inter-linkage to channel the impact on urban informal wage. Such analysis also helps to infer the well-being of the urban poor, given its strong association with the trends in informal wages.

General equilibrium, Technological progress, Urban informal wage
1059-0560
400-416
Mukherjee, Soumyatanu
3eb37c57-3efd-4203-a81b-de3acad02811
Mukherjee, Soumyatanu
3eb37c57-3efd-4203-a81b-de3acad02811

Mukherjee, Soumyatanu (2016) Technology, trade and ‘urban poor’ in a general equilibrium model with segmented domestic factor markets. International Review of Economics and Finance, 45, 400-416. (doi:10.1016/j.iref.2016.07.003).

Record type: Article

Abstract

Drawing on the evidence from Indian provinces, this paper, using a four-sector general equilibrium model with segmented domestic labour and capital markets, proposes that factor-specific technological progress only in the capital-intensive segment of the urban formal sectors may affect the urban informal workers adversely, while a trade induced progress in the vertically integrated skill-intensive formal sector benefits them. The numerical analysis further illuminates the importance of credit-product inter-linkage to channel the impact on urban informal wage. Such analysis also helps to infer the well-being of the urban poor, given its strong association with the trends in informal wages.

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Accepted/In Press date: 6 July 2016
e-pub ahead of print date: 8 July 2016
Published date: 1 September 2016
Keywords: General equilibrium, Technological progress, Urban informal wage

Identifiers

Local EPrints ID: 439044
URI: http://eprints.soton.ac.uk/id/eprint/439044
ISSN: 1059-0560
PURE UUID: a5feaff8-496a-450a-a924-01bfbd03a0d9
ORCID for Soumyatanu Mukherjee: ORCID iD orcid.org/0000-0003-0674-1064

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Date deposited: 02 Apr 2020 16:31
Last modified: 09 Jan 2022 04:10

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