Americans overall are wealthier than ever, but that prosperity has its limits. The gap between the “haves” and “have-nots” has widened to a point not seen since the 1920s, with a recent study finding the top 1 percent of all wage earners earning 81 times more than the bottom 50 percent.

Economist Kevin M. Murphy discusses the economics behind the rise in income inequality – changes in the relative demand for high- and low-skilled workers and in our nation’s ability to supply the skills most relevant today. And he offers solutions. Rather than more progressive income taxation, he says, we need more high school graduates going on to college.

Murphy, who teaches economics at the University of Chicago Booth School of Business, is the first business school professor to be named a MacArthur Fellow. The event is co-presented by the Show-Me Institute.