Question

If the United States allows a greater quantity of highly skilled workers, what will be the impact on the average wages of highly skilled employees?

Short answer

If the United States allows a greater quantity of highly skilled workers the average wages of highly skilled employees would start following a decreasing trend.

Step-by-step solution

Concept Introduction

Advanced degree (university and higher), the capacity to accomplish complex tasks, the capacity to adjust quickly to technological changes, and the creative application of information and skills obtained via training in their work are characteristics of highly skilled labor.

Explanation

The situation in which the United States supplies highly skilled people in large numbers will have a detrimental impact on wages. Due to the abundance of high-skilled individuals on the market, the supply curve will shift to the right, indicating that equilibrium average salaries will begin to decline and the optimum pool of labor will increase. Wages per labor will reduce as the number of labor increases.

Final answer

Therefore, as a result of the increased availability, workers' average pay will decrease.