The article explores how changes in wages in Europe are influenced by factors like labor supply, technical advancements, and institutional changes. The researchers use a method called empirical Bayes to analyze this relationship without making strict assumptions. They find that changes in the wage distribution since 2003 in European countries are affected by factors like demographic shifts and education access. The study shows that the elasticity of substitution in Europe is smaller than in the US, and certain production functions fit the data well.