Shifts in the demand curve of labor due to increased competition from Chinese imports are comparable to shifts in the demand curve due to ________.

Question

Quizplus · Accepted Answer

Technological developments that replace manual labor also lead to a shift in the demand curve of labor. Both shifts are caused by changes in the productivity of labor, which affects the demand for labor at different wage levels. The increase in competition from Chinese imports reduces the demand for labor in industries that compete with Chinese imports, while technological advancements reduce the demand for labor in industries where machines can perform tasks more efficiently and effectively than humans.

Shifts in the Demand Curve of Labor Due to Increased