Insights / Video

UnCommon Core: Human Capital Investment Inequality and Growth with Kevin Murphy

Recently the seeming permanence of the rise of earnings inequality has motivated policy proposals to mitigate its impact, including more progressive income taxation, wealth and inheritance taxes, and pay regulation. In this UnCommon Core, economist Kevin Murphy argues that most of these treat the symptom rather than the disease. Instead he suggests a focus on the supply side, where the human capital choices of individuals and families affect the skill composition of the labor force.