Income Inequality = Education Inequality

The most commonly cited culprits for the income inequality in America — outsourcing, immigration and the gains of the super-rich — are diversions from the main issue. Instead, the problem is largely one of (a lack of) education.

For the economy as a whole, labor’s share of national income has stayed roughly constant at just above 70%. What has changed is that highly skilled laborers earn more labor income than low-skilled workers.

College graduates have been gaining relative to high school graduates.

From an editorial in today's NYTimes by George Mason economist Tyler Cowen.