1. The distribution of total labor income can only be changed in one way.
Over the period and geographical area considered, nominal wage variations are or are not uniform. While uniform, hourly wage differentials have remained constant and the distribution of total labor income is stable. If nominal wage changes are not uniform, wage differentials and the distribution of total labor income change. From these observations results an iron law, that of remuneration for work.
2. Higher wages than others reduce the average of those below them.
If it were otherwise, the distribution of total labor income would not be modifiable by modulating changes in nominal wages differently. And it is. An increase in the gap between the highest and lower hourly wages is necessary and sufficient for the highest wages to increase faster than total labor income in the country under consideration.
This relationship holds because the distribution of total labor income is responsive to variations in nominal wage growth. It follows logically that an increase in the wage gap is the necessary and sufficient condition for top-tier wages to rise more rapidly than the country's total labor income.
3. Higher wages reduce the average of those that are lower.
An increase in the gap between the lowest and higher hourly wages is necessary and sufficient for the highest wages to rise faster than the total labor income in the country under consideration.
4. A large variation in the gap between the highest wages and the average of the others has a big effect on this average.
If 2% of hourly wages have an average 40 times higher than that of the average of the other 98% of hourly wages, at constant payroll, how much could the average of the other 98% be increased from 40 times to 20 times – thus lowering the average of the top 2% hourly wages by 50%? It is expected to increase by 41%:
The distribution of this mass would become:
€17,800 - €4,000 = €13,800;