Hi Damianos, Thanks for your feedback! After reading your question, I once again checked the US BLS site from where I got the wage data. They do not say that it is deflated. So, yes, it would be good idea to deflate the data before fitting a regression model on it, as inflation could well explain some of the variance in the data.

You may want to check out my article on how to deflate a time series. Thanks for your comments. Good observation!