Age pays off
As older people earn more on average than young people, an ageing workforce has an upward effect on wage growth, all other things remaining equal. In addition to this structural effect, economic activity also plays a role. During recessions, very few job seekers find employment. This happens to young people in particular, causing the average age of the workforce to rise as compared with unchanged age distribution. During the economic revival of the past few years, relatively many young people were hired, which has been depressing wage growth at the macro level.
Contribution to change in hourly wage rate (pp)