why is the lifetime distribution of income more equal than the distribution in anyspecific year.?

Answer 1

Most people are not 'rich' or 'poor' for their entire life. Most people start out with a lower income and retire at a higher income. Younger workers with low income and older workers with higher income cause a wider spread in any given year than the actual spread over the same workers lifetimes.

Answer 2

I think I understand your question, but if not, forgive me. If you look at the lifetime income of people, the "rich" typically earn most of their money in a short time instead of over 40-60 years. Yes they have income after the big burst, but it will often be interest, or residual income based upon work from prior years. This residual will sometimes not be included in the calculation, thus making the lifetime income more equal to that of most people. Sorry if this doesn't make sense, I am having problems thinking clearly today.