We believe that the U.S. evidence on income and wealth shares for the top 1 percent is most consistent with a “superstar”-style explanation rooted in the importance of scale and skill-biased technological change. In particular, we interpret the fact that the top 1 percent is spread broadly across a variety of occupations as most consistent with an important role for skill-biased technological change and increased scale. These facts are less consistent with an argument that the gains to the top 1 percent are rooted in greater managerial power or changes in social norms about what managers should earn.
blogging my (mis)adventures in China between and during bouts of jetlag peppered with random thoughts on investing, strategy and development
Monday, June 24, 2013
Are the 1% the 1% because they deserve it?
New paper: "It’s the Market: The Broad-Based Rise in the Return to Top Talent" by Steven N. Kaplan and Joshua Rauhvia via Greg Mankiw:
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