The ageing of the US population appears to have contributed to a decline in the share of income accruing to workers, a working paper published by the Bank for International Settlements finds.

Andrew Glover and Jacob Short hypothesise that as workers age, their “dynamism” in seeking better job opportunities diminishes. This in turn gives their employer more power to set their wages, which leads to a widening gap between productivity and pay as workers get older.

Glover and Short test their