Wages for low-skilled positions are typically higher in developed countries than wages for identical positions in less- developed countries. Which of the following explain why this is the case. I. There is a greater supply of low-skilled labor in less- developed countries. II. There is a greater demand for low-skilled labor in developed countries. III. There is a greater demand for low-skilled labor in less- developed countries.

Question

Quizplus · Accepted Answer

Option I is correct because in developing countries, the labor market is typically over-supplied with low-skilled workers, which drives down wages. Option II is correct because developed countries have a higher demand for low-skilled labor due to their advanced economies and more extensive infrastructure.

Wages for Low-Skilled Positions Are Typically Higher in Developed Countries