Why does the wage inequality gap often appear in developed economies? Select one – the most appropriate answer.Single choice

A

No correct answer.

B

Economists mostly explain that by the fact that stems from Heckscher-Ohlin model – trade between economies with different level of endowment with high-skilled and low-skilled labor brings about the expansion of this gap.

C

There can be different reasons which also depends on particular economy, but economists mostly explain that by trading with less developed countries (implying provisions of Heckscher-Ohlin model) and technological change.

D

Wage inequality gap actually results from different technological level in different economies that brings about the skill-biased technological change.

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