Pay inequality is a heated issue with many people believing CEOs and other “fat cats” earn too much while those at the bottom of the salary scale are barely scraping by.
But Raghuram Rajan, a former Chief Economist at the International Monetary Fund (IMF), is more concerned about those caught between these two extremes.
Rajan refers to these people as “the missing middle,” and he says in the United States and elsewhere, they are increasingly sliding into lower middle class status. He believes education and skills training can help close the gap.
To learn more about this, the IMF’s Lika Gueye sat down with Mr. Rajan who is a finance professor at the University of Chicago’s Booth School of Business.