Why is income inequality in America so pronounced? Consider education
Outsourcing, immigration, and the gains of the super-rich are the most common reasons for the income inequality in America. Tyler Cowen disagrees: The problem is largely the lack of education. To date,
outsourcing is not yet common enough to have much effect. Immigration doesn't account for much of the change in the wages paid to unskilled workers since 1950. Advances in technology raises the incomes of
highly skilled workers. Inequality will be reduced if more people undertake education.
Source: The New York Times, May 17, 2007
Immigrants to the United States include unskilled workers from Mexico and skilled workers from countries such as India and China. How would each of these types of immigrants influence the personal
distribution of income?
Unskilled immigrant workers ______ and skilled immigrant workers
A. decrease the percentage of total income earned by the poorest 20 percent;
increase the percentage of total income earned by the richest 20 percent
B. decrease the percentage of total income earned by the richest 20 percent;
increase the percentage of total income earned by the poorest 20 percent
C. have no effect on the personal distribution of income;
have no effect on the personal distribution of income
D. increase the percentage of total income earned by the poorest 20 percent;
decrease the percentage of total income earned by the richest 20 percent
