Factors increasing the labor supply and thereby contributing to the slowdown in real-wage growth that began in the 1970s include ______ and _____.
A) skill-biased technological change; globalization
B) increased labor force participation by women; the coming-of-age of the baby-boom generation
C) technological progress; diminishing returns to labor
D) increasing wage inequality; globalization

Question

Quizplus · Accepted Answer

The increased labor force participation by women and the coming-of-age of the baby-boom generation are both factors that have led to an increase in the labor supply, which has contributed to the slowdown in real-wage growth since the 1970s. Skill-biased technological change and globalization have also had an impact, but these are not the factors mentioned in the question. Technological progress and diminishing returns to labor may affect the productivity of workers, but they do not directly increase the labor supply. Increasing wage inequality and globalization may affect income distribution, but again, they do not directly increase the labor supply.

Factors Increasing the Labor Supply and Thereby Contributing to the Slowdown