... , however, one more way in which international trade could affect the economy, which could explain both the increase in U.S. inequality and the rise in European unemployment: increased trade with countries abundant in unskilled labor could increase the premium on skill. This idea is attractive at several levels. First, it offers a broad common explanation of what is happening on both sides ... their Western counterparts earn and often work in much harsher conditions. The proper comparison, however, is not between U.S. wages and developing-country wages but between export-sector wages in d...

• Word Count: 3449
• Approx Pages: 14
• Has Bibliography
• Grade Level: Undergraduate