Inequality and trade:

a. Describe the "Hallowing Out of the Middle Class" phenomenon in the US? What are the possible causes of the phenomenon. b. Discuss four broad global trends economists considered as the drivers of rising inequality in advanced economies. Based on Autor, Dorn, and Hanson (2016) "The China Shock: Learning from Labor Market Adjustment to Large Changes in Trade" Annual Review of Economics, answer the following questions. c. Describe the local labor market approach in simple English. d. Explain the idea of the instrument the authors used. What is the endogeneity problem it is used to address?