What do economists suggest as a reason for the growing wage disparity between skilled and unskilled labor?

Show Answers

A reduction in demand for unskilled labor caused by advancements in technology and expanded international tradeA rise in the supply of unskilled workers due to immigration into the UKA decline in demand for unskilled workers because they have lower educational attainmentAn increase in unskilled labor supply as a result of poorer education levels among workers

Explanation

Economists attribute the widening wage gap primarily to a decreased demand for unskilled workers, which stems from technological progress and greater international trade. These factors reduce the need for unskilled labor relative to skilled labor, thereby increasing wage inequality.