The effect of this was a decrease in the share of people not in the labour force. Second, after the post-war baby boom, there was a decline in birth rates. Consequently, the fraction of people who were not economically active fell further. Third, the labour market participation of women increased.
This had a strong positive effect on the labour 3/7  BIS central bankers' speeches  supply as well. Fourth, China emerged as the World’s Factory. Lastly, trade barriers in Europe were gradually dismantled. The authors claim that the labour supply shock led to decreasing real wages, in particular in the case of unskilled labour, due to the declining power of trade unions.