Asked by Alexandra Ivars on Jun 25, 2024
Verified
Some economists argue that changes in U.S. trade flows have altered the gap between wages of skilled and unskilled workers. Explain.
Trade Flows
The movement of goods and services across borders, reflecting the import and export activities between countries.
Skilled Workers
Individuals who have acquired special skills, training, knowledge, and abilities in their work.
Unskilled Workers
Individuals in the workforce who possess limited or no specific skills in their job roles and typically perform simple tasks that require little training.
- Analyze the impact of trade policy changes on wage disparities between skilled and unskilled workers.
Verified Answer
CM
Chloe MarieJun 29, 2024
Final Answer :
The U.S. tends to import goods produced by unskilled workers and export goods produced by skilled workers. Increased imports and exports have reduced U.S. demand for unskilled workers and raised U.S. demand for skilled workers. Consequently, wages of unskilled workers have fallen relative to wages of skilled workers.
Learning Objectives
- Analyze the impact of trade policy changes on wage disparities between skilled and unskilled workers.