Full text: The Personal Distribution of Income

6 
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globale” (Polya) of the past. Second, the model is con 
fined to a life-cycle from »—* entrance to exit. But the 
relevant stochastic process goes far beyond that. In 
fact, when somebody starts in life, his chances of re 
ceiving certain incomes are already settled to a large 
extent by the condition of his parents: By their wealth, 
status, connections, reputation and the education or training 
they have been able to give him. In other words, the exits 
and the entries in the life-time model are linked by in 
heritance etc., and the process of diffusion continues on 
a higher stage. 
tO > Tly 
Both arguments point/lthe same conseqaence: ¥e must relate 
the chances of getting certain incomes to the amount of 
wealth, material and immaterial, and its distribution. 
In this way we can link the income to a suitable state 
variable (wealth) which is evolving in a long run process 
through the generations. 
Also, we shall then be able to answer the question ifhy 
income distribution is relatively stable, although so many 
elements relevant to it are changing day by day; She answer 
is that the stability lies in the distribution of wealth, 
*) 
education, training etc., which change only slowly. 
12 7 p. 142 
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