Feature article Blame the baby boomers for depressed wage growth

摘要

While 'blame' may sound harsh, the reality is that in an ageing society, the over-60s accounting for a bigger share of the workforce equals lower wage growth. This is particularly pertinent for the eurozone right now with the baby boomer generation entering the last phase of their working life. Our analysis shows that the very sizeable over-60 cohort is depressing aggregate wage growth by up to 0.3 ppts annually. That may also help explain why inflation is still subdued.