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Immigration and Trade in Relation to Wage Inequality

Explain how immigration and trade may worsen wage inequality, and how college education may mitigate against that.

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The more trade that takes place, the lower the specialization throughout those industries, which directly leads to lower wages in those areas. The areas that are the most specialized or that require a high degree of customization are not the jobs that are involved in trade the heaviest, as compared to the jobs that do not require such specialization. Therefore, the higher the trade in these areas, the lower the wages. When we compare the wages from these ...

Solution Summary

This solution explains how immigration and trade affect wage inequality. This solution also discusses how a college degree affects wage inequality.