Which of the following explains the rise in income inequality in the United States from 1970 to 2011?
A)An increase in minimum wages.
B)An increase in the demand for skilled labor.
C)An increase in the demand for unskilled labor.
D)Reduced international trade with low-wage countries.

Question

Quizplus · Accepted Answer

The increase in demand for skilled labor led to a higher wage for those workers, while the demand for unskilled labor did not experience the same growth. This resulted in a widening gap between the wages of skilled and unskilled workers, contributing to income inequality.

Which of the Following Explains the Rise in Income Inequality