The combination of higher pay despite growing supply can only mean that the relative demand for skilled labor increased even faster than supply. And at the same time, the demand for tasks that could be completed by high school dropouts fell so rapidly that there was a glut of this type of worker, even though their ranks were thinning. The lack of demand for unskilled workers meant ever-lower wages for those who continued to compete for low-skill jobs. And because most of the people with the least education already had the lowest wages, this change increased overall income inequality.
