The paper discusses how trade and technological change affect wage differences. It suggests that in countries with strict labor laws and high minimum wages, the government may need to support technological innovation to prevent job losses due to foreign competition. This can lead to lower wage gaps between skilled and unskilled workers. The study shows that in these countries, unskilled workers can be more productive in certain industries, and the demand for skilled workers may increase even as their wages decrease. This helps explain why trade may not have a big impact on wage gaps and why trade between developed and less-developed countries is limited.