But one could argue that structural changes in the economy have raised the sustainable level and growth of earnings and lowered the volatility of earnings or otherwise reduced the perceived risk in equities. Such structural changes could, in principle, justify at least a substantial portion of the rise in equity prices.
As for wages, regular payments have started to rise in addition to the increases in overtime and bonus payments. Although the pace of increase in wages is moderate partly due to firms' efforts to restrain labor costs, the increase is likely  BIS Review 59/2006  1  to continue.