Which of the following does not explain the rise in income inequality in the United States from 1970 to 2011?
A)Changes in technology.
B)An increase in minimum wages.
C)A reduction in the demand for unskilled labor.
D)Increased international trade with low-wage countries.

Question

Quizplus · Accepted Answer

An increase in minimum wages would actually reduce income inequality as it would increase the wages of lower-income workers. Therefore, it is not a factor that explains the rise in income inequality from 1970 to 2011, while A, C, and D are all factors that have been identified as contributing to this trend.

Which of the Following Does Not Explain the Rise in Income