📚 Learning Guide
Impact of Technology on Labor Demand
hard

How does the adaptation of technology in the workplace contribute to wage polarization, particularly in the context of the skills gap?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

It reduces the demand for low-skilled workers while increasing wages for high-skilled workers.

B

It increases the demand for all types of labor equally.

C

It has no significant impact on wage structures in the economy.

D

It eliminates the need for skilled labor altogether.

Understanding the Answer

Let's break down why this is correct

Answer

The adaptation of technology in the workplace can lead to wage polarization, which means that there is a growing gap between high and low wages. As companies adopt advanced technologies, they often seek workers who have specialized skills to operate these tools, creating a higher demand for skilled labor. For example, a factory that uses robots may need engineers and programmers who understand how to work with these machines, while the demand for unskilled labor, like assembly line workers, may decrease. This shift can result in higher wages for skilled workers, while unskilled workers may face stagnant or declining wages, widening the income gap. Ultimately, the skills gap—where some workers do not have the necessary skills for new technology—exacerbates this issue, leaving many behind in the job market.

Detailed Explanation

Technology often replaces jobs that require less skill. Other options are incorrect because Some might think technology helps all workers equally; It's a common belief that technology doesn't change pay.

Key Concepts

skills gap
wage polarization
technological adaptation
Topic

Impact of Technology on Labor Demand

Difficulty

hard level question

Cognitive Level

understand

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.