Asked by Alexandra Ivars on Jun 25, 2024

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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.
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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.