Final answer:
Most in-demand jobs in the ICT sector require technical and soft skills. Technological advancements and globalization have raised the demand for high-skilled labor, and increased competition for lower-skilled workers, contributing to greater wage inequality.
Step-by-step explanation:
The most in-demand jobs in the ICT sector generally require a combination of technical and soft skills. The rise in high-skilled labor demand can be attributed to the proliferation of new information and communications technologies that enhance productivity, particularly for high-skilled workers like business managers, consultants, and design professionals.
Technological advancements have fostered globalization, increasing international trade and thereby expanding opportunities for high-skilled labor globally while simultaneously expanding competition for lower-skilled workers. In contrast, information technology tends to reduce the demand for low-wage labor because it can substitute for certain kinds of low-skill jobs and facilitate offshoring work to other countries.
For high-wage labor, on the other hand, technological advancements shift the demand to the right as it enables these workers to manage more tasks and become more productive. This dynamic contributes to an overall greater wage inequality between high-wage and low-wage labor markets.