This article proposes an original analytical framework to study unemployment in segmented labor markets, emphasizing both intra-segment frictions and intersegmental mismatches. It introduces two key indicators to measure matching inefficiency and imbalance between jobseekers and vacancies. The model decomposes unemployment into three components: job shortage, frictional, and mismatch unemployment. Using a modified matching function and an empirical simulation, the study shows how inefficient allocation across segments sustains unemployment. Results highlight that enhancing intra-segment efficiency alone is insufficient; reducing structural mismatches is equally essential. This framework provides practical insights for labor policies focused on mobility, skill alignment, and improved distribution of employment opportunities.
Ahmed Bedhiaf (Mon,) studied this question.