How so? The paper claims to be measuring performance, not ability. Performance following a Paretian distribution says something about how society is organised, not about how people act. For example, take academic paper publication. If you identify a particularly prolific author, and shoot him, would there be fewer publications next year, or the same? Unless you think that some publications would suddenly fold without their favourite contributor, it seems obvious that the same number would be published. Which means that what the distribution is showing is not that publishable ideas are concentrated in a few people, but rather that the system is geared up to reward the already sucessful with greater recognition.
Your conclusion does not follow.
Lets put it in a different realm where it's clearer. Al-Qaeda hits the All-Star game, a bunch of top players are killed.
Does that magically make the remainder move up in ability? Or does it mean we will see less good play next year?
That demonstrates the point I'm making. Ask yourself this. Will the people who move up magically become as good as the previous lot by the end of the season? If not, then they're showing the same performance indicators (games played) as the previous bunch, but clearly don't have the same ability.
It's not hard to spot the gap here. You have 100 players, and take the top 20 to play in the NFL. The gap between number 20 and number 21 might be large, or it might be small. But the number of NFL games they play will not magically depend on their skills, only their position relative to each other.
The performance indicator being used appears to be an ordinal indicator being used as an interval measure. The number of games you play, number of papers you publish, etc. Does not depend on your skill, but rather your position in the hierarchy. Your position in the hierarchy may depend on relative skill (or it might not), but because the hierarchy not the skill drives the performance indicators being measured, the performance indicators being measures can not possibly tell you anything about the distribution of skills.