3 ms·
It's hard to tell what the distribution of income is without good data. I'm skeptical that normal, non-startup businesses fall into this pattern. I'd expect mor
by xapata 10y ago
It's hard to tell what the distribution of income is without good data. I'm skeptical that normal, non-startup businesses fall into this pattern. I'd expect more of a log-normal for most industries.
The log-normal also applies somewhat for lawyers. The partners of big firms make millions annually.
As long as we're getting into nuance, I should add that the two-peak distribution is most clear for lawyer starting salary, not long-time professional. You either go top firm or not.
- jtfairbank 10y agoGreat points all around! The reason I think small businesses are relevant is that the founders/owners own the entire business. They either lose money, break even, or make money. In the sucessful small business cases where they make money, since they own 100% their profit requirements for a good return are far lower than those of a startup. I'd guess it's still a power law scenario (just with less amplitude than startups).