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Economists Have Figured Out Who's Really to Blame for Increase in Income Inequality
The Washington Post; subscription may be required Link to more items from this source
May 29, 2015

"[I]f CEOs really are gobbling up a bigger and bigger slice of the profit pie, then inequality within society at large should have increased because inequality within companies increased. But that's not what happened.... [Researchers] were able to look at what had previously between private earnings data for every company between 1978 and 2012 -- the best data we have so far -- and found that the pay gap between executives and their own workers had barely changed during this time. What had changed, though, was the pay gap between every worker at the highest-paid firms and everyone else. In other words, inequality exploded because the top 1 percent of companies were making more and paying all their employees more. This was true across the country and across industries."

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