  The personal income distribution (PID) above the Pareto threshold is studied
and modeled. A microeconomic model is proposed to simulate the PID and its
evolution below and above the Pareto income threshold. The model balances
processes of income production and dissipation for any person above 15 years of
age. The model accurately predicts the observed dependence of the number of
people reaching the Pareto threshold on work experience and the functional
dependence of the relationship on the per capita real GDP growth for the period
from 1994 to 2002. Predictions of the income distribution depending on age are
given for past and future. In future, relatively less rich people are observed
in the younger age groups and the peak of the relative number shifts to older
ages with time. The effect of the power law distribution extending itself to
very high incomes is speculated to be the cause of low performance of socialist
countries.
