Critics of globalization maintain that the apparent decline in real wage rates of unskilled workers
A)owes far more to a technology-induced shift within advanced economies toward jobs that require significant education and skills.
B)is due to the migration of low-wage manufacturing jobs offshore and a corresponding reduction in demand for unskilled workers.
C)has been impacted most by technological change.
D)can be checked by increasing society's investment in education to reduce the supply of unskilled workers.

Question

Quizplus · Accepted Answer

Critics of globalization argue that the migration of low-wage manufacturing jobs to developing countries leads to a reduction in demand for unskilled workers, resulting in a decline in real wage rates. This is supported by evidence that wages for unskilled workers in manufacturing have declined relative to those for higher-skilled workers in advanced economies. While technological change can also contribute to a shift in demand towards higher-skilled workers, it is not the primary driver of the decline in real wage rates for unskilled workers. Increasing society's investment in education may help to address the skills gap, but it is unlikely to reverse the trend of declining wages for unskilled workers.

Critics of Globalization Maintain That the Apparent Decline in Real