Skill-biased technological change _____ the demand for high-skilled workers, while a slowdown in the pace of educational advancement reduces the supply of skilled workers. If we observed both of these phenomena, we would expect _____ wages for skilled workers.
A)increases; higher
B)increases; lower
C)decreases; higher
D)decreases; lower

Question

Quizplus · Accepted Answer

Skill-biased technological change increases the demand for high-skilled workers, and if the supply of skilled workers does not keep up due to a slowdown in educational advancement, it would lead to higher wages for skilled workers due to the increased demand and limited supply.

Skill-Biased Technological Change _____ the Demand for High-Skilled Workers, While