-In the above figure, an innovation that increases the demand for high-skilled workers and decreases the demand for low-skilled workers will

Question

Quizplus · Accepted Answer

An innovation that increases the demand for high-skilled workers and decreases the demand for low-skilled workers will increase the wage gap between high-skilled (W_H) and low-skilled (W_L) workers, as the demand for high-skilled workers raises their wages while the demand for low-skilled workers decreases their wages.

-In the Above Figure, an Innovation That Increases the Demand