People's incomes are relatively low when they are young, reach a peak in middle age, and then decline. This fact helps explain

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Quizplus · Accepted Answer

The fact that people's incomes start low, peak in middle age, and then decline suggests that over a lifetime, individuals may experience various income levels. This variability tends to even out income disparities when viewed over the entire lifespan, making the lifetime distribution of income more equal than the distribution observed in any single year, where people of all different ages and stages of their career are compared simultaneously.

People's Incomes Are Relatively Low When They Are Young, Reach