FIGURE 15.9 Why Would Wages Rise for High-Skilled Labor? The proportion of workers attending college has
increased in recent decades, so the supply curve for high-skilled labor has shifted to the right, from S0 to S1. If the
demand for high-skilled labor had remained at D0, then this shift in supply would have led to lower wages for high-
skilled labor. However, the wages for high-skilled labor, especially if there is a large global demand, have increased
even with the shift in supply to the right. The explanation must lie in a shift to the right in demand for high-skilled
labor, from D0 to D1. The figure shows how a combination of the shift in supply, from S0 to S1, and the shift in
demand, from D0 to D1, led to both an increase in the quantity of high-skilled labor hired and also to a rise in the
wage for such labor, from W0 to W1.

What factors would cause the demand for high-skilled labor to rise? The most plausible explanation is that
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