Plausibly, it’s most cultural but, at the moment, I would say that most people expect to go up in pay and respect as they age; they also will want to boost their own family and friends to the amount that they have the power to do so. A wealthy person thinks that they should be able to put their kids in the best schools, push to get their kids hired into the best jobs, etc.
In general, the idea of capitalism is that it’s more effective to harness and guide human instinct rather than to fight it. Part of human nature is the sense that things should be “fair” - i.e. that the economy should be a meritocracy. But the above items are exceptions to that. People don’t like to have 22 year olds as their boss and they might feel like their money is worthless if, for example, we forced everyone to attend the same public schools/banned outside money from schools/etc., and they can’t spend their money, effectively, on their kids. It would be like you give everyone free food, free entertainment, free vacations, etc. so that no one really needs anything more - but give more money to those who work harder. What are they supposed to spend it on?
A quasi-meritocracy is probably the best we can get.
From my own career, I’d say that there are people who are ~12x more effective than most others. I’d venture to guess that most careers will follow this pattern.
From that, you’d expect the distribution of wealth to make these individuals worth about 12x more than the others.
As a percentage, I’d probably say that in a group of 12 people, at least one of them will be ~4x better than the rest. In a group of 60 people, you’re likely to get one of the 12x types.
So we would expect that the top earners are roughly 1/60th (1.67%), middle tier are about 1/12th (8.33%), and the remainder of the population make up the rest. Obviously, we’d expect a smoother breakout than that, but it gives us a sense for the amount of centralization of money.
Now, I’d probably say that on the second criteria - how narrow the spike of higher income should be - our society might not be so far off. But in terms of the expected wage difference between the highest and the lowest, things are way off from what I would expect from a meritocracy. We expect a 12x difference in pay but we see multi-digit powers of magnitude of difference.
One problem with the above model, though, is that one skill in life is money management and another skill is salesmanship - convincing people to do things that make no sense. If a real world talent is “reducing meritocracy” then, in a meritocracy, we wouldn’t really expect things to follow the expected payout.