I highly recommend this talk [0] by Kevin Murphy. Rising inequality can be explained by the rising wage premium for higher-skilled workers. In the 60s, a college graduate made only 40% more than a high school graduate; this number climbed and is now more than 80%.
The demand for, and productivity of, high-skilled workers is increasing rapidly, while the supply is not increasing very much. The masses have responded to these price signals by going to college more, but aren't actually coming out the other side with higher skills, or even diplomas, probably due to deficits in K12.
Notably, this is not a story about the top and bottom 1%. The premium has widened enormously across the board, i.e. between the 25th and 75th percentiles.
The demand for, and productivity of, high-skilled workers is increasing rapidly, while the supply is not increasing very much. The masses have responded to these price signals by going to college more, but aren't actually coming out the other side with higher skills, or even diplomas, probably due to deficits in K12.
Notably, this is not a story about the top and bottom 1%. The premium has widened enormously across the board, i.e. between the 25th and 75th percentiles.
[0] https://www.youtube.com/embed/KevV_A6N-6o