Large disparities in wages could possibly result from all but which one of the following?
A)Parental investment in a child's human capital.
B)Increases in the amount of middle class jobs.
C)Skill-biased technological change.
D)Globalization.
E)An increase in the demand for highly skilled labor.

Question

Quizplus · Accepted Answer

Increases in the amount of middle-class jobs are unlikely to cause large disparities in wages. In fact, the creation of more middle-class jobs may help to reduce income inequality by providing opportunities for those who would otherwise earn low wages. The other options- parental investment in human capital, skill-biased technological change, globalization, and an increase in the demand for highly skilled labor- are all factors that can contribute to large wage disparities.

Large Disparities in Wages Could Possibly Result from All but Which