“This growing inequality,†President Obama said during his recent Knox College speech, “is not just morally wrong, itÂ’s bad economics.â€A strong statement — but one not supported by data, suggests a blockbuster new study by economists Steven Kaplan (University of Chicago) and Joshua Rauh (Stanford University). They examine two possible explanations for the rise in top-end inequality in their paper “It’s the Market: The Broad-Based Rise in the Return to Top Talentâ€:1. The Superstar Syndrome. Technology and globalization has enabled highly talented and educated individuals to manage or perform on a larger scale, “applying their talent to greater pools...