Krugman on Inequality

1. Suggest three reasons why the return to education has risen in the last 30 years. Why are “greater returns to education” not enough to explain the increase in inequality over the last 30 years?
2. How are CEO salaries set? How do you measure the marginal productivity of Citibank's Charlie Prince or Merrill Lynch's John Thain?
3. Discuss Table 10 on page 248.
4. “France is great because of the huge welfare state.” We would answer, “But French unemployment is huge and the French are very unproductive.” How does Krugman respond to our objection?