Most economists maintain that the major factor underlying wage stagnation in the United States in the 1990s has been:
A) Import competition
B) Technological change
C) Rising real value of the minimum wage
D) Increasing union membership

Question

Quizplus · Accepted Answer

Most economists agree that technological change has been the major factor underlying wage stagnation in the United States in the 1990s. With advancements in automation and information technology, many low-skilled jobs have been replaced by machines or outsourced to other countries with cheaper labor costs. This has put downward pressure on wages for low-skilled workers and contributed to overall wage stagnation. Import competition, the rising real value of the minimum wage, and increasing union membership have all played a role, but not to the same extent as technological change.

Most Economists Maintain That the Major Factor Underlying Wage Stagnation