Which of the following is not a possible explanation as to why wage inequality increased markedly over the last 40 years in the United States?
A. There was an increase in the supply of low-skill workers, particularly through immigration.
B. Recent technological changes have been complementary to skilled labor while substituting for unskilled labor.
C. Competition from international economies has increased demand for highly productive workers.
D. Institutional changes in the United States such as a steady decline in union coverage and a falling real minimum wage have led to changes in the wage distribution.
E. Federal legislation allowed employers to legally engage in more racial discrimination.
Answer: E
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