Which of the following is believed to cause recent increases in wage inequality?
A) Skill- biased technological progress.
B) International trade.
C) The weakening of trade unions.
D) Both A and C.
E) Both B and C.

Question

Quizplus · Accepted Answer

Skill-biased technological progress has led to an increase in demand for skilled workers, which has caused their wages to increase relative to those of unskilled workers. The weakening of trade unions has also resulted in a decline in their ability to negotiate on behalf of workers and protect their wages, exacerbating the inequality. Therefore, both A and C have contributed to recent increases in wage inequality.

Which of the Following Is Believed to Cause Recent Increases