Wage relations in the coming decades

As wealthy Western populations age, the labor force will gain more power, leading to increased bargaining power, higher wages after taxes, and a possibly a resurgence of private sector unions. Consequently, the substantial inequality witnessed in developed countries is likely to decrease significantly over the next few decades.

In recent decades, several factors have contributed to a decline in workers' bargaining power and an increase in inequality within countries. The integration of China into the global economy, coupled with a high dependency ratio resulting from a large generation of baby boomers, has had an impact. Moreover, globalization and liberal economic policies have pressured more individuals into employment

Although India and Africa possess large and growing working-age populations, their current levels of productivity and education lag behind those of China and Eastern Europe during their integration into the global workforce. Furthermore, these regions face challenges related to migrant brain drain, infrastructure, governance, and corruption. Given the growing skepticism towards globalization and the push to bring manufacturing back to domestic markets, any production shifts to India and Africa may not fully compensate for the anticipated global aging and demographic changes.