Remix.run Logo
mdnahas 2 days ago

I’m an economist who has looked into something like this. This paper is about intra-company performance. I’ve look at incomes of the whole population. There, you find two distribution. Wages seem to follow a log-normal distribution, while income from investments follows a heavy-tailed distribution, like a Pareto.

Wages tend to be smaller than asset income. Top sports players and musicians work for wages and become billionaires. Startup founders, who own assets, become trillionaires.

Obviously, there are differences. Wages are not productivity. (But the article didn’t say how productivity was measured.). Also, a company can choose who joins and leaves it. So one company’s wage distribution doesn’t have to follow the distribution of the wider economy.