07-22-2016, 10:30 PM
If trade with low wage countries were the reason for the wage stagnation in the bottom half, we should have seen a market shift towards more skilled sectors and a loss at the low skill part. This isn't what we've seen though, here is Krugman:
Quote:trade should have produced a shift in employment toward more skill-intensive industries; it couldn’t explain what we actually saw, which was a rise in the level of skills within industries, extending across pretty much the entire economy