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The relative wage of unskilled workers has fallen in the United States likely as a result of a relative a. increase in the number of unskilled workers available due to immigration into the United States b. decrease in the demand for unskilled workers because workers are more inadequately educated c. decrease in the demand for unskilled workers because of skill-biased technological change and increases in international trade d. increase in the number of unskilled workers available because workers are more inadequately educated

Ask by Powers Li. in the United States
Mar 10,2025

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The relative wage of unskilled workers has fallen in the United States because there has been a decrease in the demand for unskilled labor due to skill-biased technological changes and increases in international trade.

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Beyond the Answer

The landscape of labor markets in the United States has evolved dramatically, particularly with the influx of technology. The economy has increasingly favored skilled labor due to advancements in technology, meaning that unskilled workers face a tougher job market. This skill-biased technological change has resulted in more demand for educated workers, while routine jobs performed by unskilled laborers have been outpaced or replaced by machines. Additionally, international trade has played a pivotal role in this dynamic. As globalization has expanded, industries often relocate to countries where labor costs are lower, reducing opportunities for unskilled workers domestically. This combination of factors contributes to a decrease in demand and wages for unskilled labor, illustrating the intertwined nature of education, technology, and global economics.

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