Which of the following explains why immigration has led to an increase in income inequality in the U.S.?
A)Immigration has increased the supply of experienced and skilled laborers who effectively earn more than the U.S.workers.
B)Immigration has lowered the wage earnings of the U.S.residents and increased the income of the capital owners.
C)The proportion of immigrants in the working-age population has far exceeded the proportion of U.S.workers
D)The immigrants are more educated than the domestic residents

Question

Quizplus · Accepted Answer

Immigration has increased the supply of low-skilled labor, which has lowered the wages of the U.S. residents working in those sectors. At the same time, immigration has had a positive effect on highly skilled labor, which has increased the income of the capital owners. This has resulted in an increase in income inequality in the U.S.

Which of the Following Explains Why Immigration Has Led to an Increase