Why does a 55-year-old worker earn on average around 40 percent more than a 25-year-old? Is there a link between average wage growth and rising wage inequality? Many answers to these fundamental questions have so far remained largely unanswered. The economists Prof. Moritz Kuhn and Prof. Christian Bayer from the University of Bonn have now evaluated wage data for the period from 2006 to 2016. They find that different progress on the career ladder is the most important driver of both wage growth and rising wage inequality. A college degree alone provides no guarantee for higher wages. The researchers present their findings in a recent "CEPR Discussion Paper".