How Do You Define Wage Inequality?

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In order to understand the dynamics of wage inequality, we must introduce other factors. The labor market is not a mathematical abstraction whose workings are entirely determined by natural mechanisms and implacable technological forces. It is a social construct based on specific and compromises. I would argue that you could have written that paragraph more or less a and he has a few others like that.

Daron Acemoglu, the Elizabeth and James Killian Professor at the Massachusetts Institute of Technology, talks with EconTalk host Russ Roberts about his new paper co-authored with James Robinson, "The Rise and Fall of General Laws of Capitalism," a critique of Thomas Piketty, Karl Marx, and other thinkers who have tried to explain patterns of data as inevitable "laws" without regard to institutions. Acemoglu and Roberts also discuss labor unions, labor markets, and inequality.