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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As people's incomes increase with age, the lifetime distribution of income is more equal than the distribution in any given year. This is because those who may have lower incomes earlier in life may see an increase in their income as they age and gain experience in their field or receive promotions. Conversely, those who may have had high incomes earlier in life may see a decline in their income as they approach retirement age. This leveling effect leads to a more equal lifetime distribution of income.

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