01825cas a2200253 a 4500 AALejournalIMF009095 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451853407 1018-5941 BD-DhAAL BD-DhAAL Aizenman, Joshua. Technological Change, Relative Wages, and Unemployment / Joshua Aizenman, Pierre-Richard Agenor. Washington, D.C. : International Monetary Fund, 1994. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the effect of skill-biased technological change on the structure of wages, the composition of employment and the level of unemployment in a two-sector economy with a heterogenous work force. Efficiency wage considerations and minimum wage legislation lead to labor market segmentation. A technological shock that reduces the demand for unskilled labor and raises the demand for skilled labor in the primary, high-wage sector is shown to increase the relative wage of skilled workers and reduce aggregate employment as well as the employment level of unskilled workers in that sector. The net effect of the shock on the employment level of skilled workers is mitigated by the existence of efficiency factors. Mode of access: Internet Agenor, Pierre-Richard. IMF Working Papers; Working Paper ; No. 1994/111 Full text available on IMF http://elibrary.imf.org/view/journals/001/1994/111/001.1994.issue-111-en.xml IMF e-Library