Fiscal conservatives might tell you that inequality is an inevitable and salutary side effect of the free enterprise system. In the U.S., after all, income inequality tends to be the most pronounced in highly innovative economies such as New York or the Silicon Valley. As a counterpoint, liberals might point to the many Scandinavian nations that are among the wealthiest, happiest, most productive, and most equal places on earth. Who’s right? A recent study from Shigehiro Oishi at the University of Virginia and Selin Kesebir at the London Business School takes a close look at the connecti...