A major finding of the offshoring model is that an increase in offshoring will raise the relative demand and relative wage for skilled labor in both countries. Does evidence from the 1980s confirm this result?
A) No, relative wages for all U.S. workers fell during the 1980s.
B) Yes, both the wage and employment of U.S. nonproduction workers increased during the 1980s.
C) Partially since the relative wage of U.S. nonproduction workers increased but the relative demand decreased.
D) Partially since the relative wage of U.S. nonproduction workers decreased while the relative demand increased.

Question

Quizplus · Accepted Answer

The evidence from the 1980s supports the offshoring model's prediction that an increase in offshoring would raise the relative demand and relative wage for skilled labor (nonproduction workers in this context) in the U.S., as both their wage and employment increased during that period.

A Major Finding of the Offshoring Model Is That an Increase