Quarterly Bulletin
Population Articles
| 2006 Q4 | The economic characteristics of immigrants and their impact on supply  (638k)(By Jumana Saleheen and Chris Shadforth of the Bank's External MPC Unit). Immigration to the United Kingdom has risen rapidly over the past decade, driven most recently by flows from the ten EU Accession countries. Monetary policy makers are interested in the impact of immigration on the macroeconomy and inflation. An increase in the number of immigrants, other things being equal, would raise the supply potential of the economy. But the extent to which potential supply increases will depend on the economic characteristics of immigrants. This article investigates the characteristics of immigrants, particularly new immigrants - those who have entered the United Kingdom in the past two years. It appears that new immigrants are more educated than both UK-born workers and previous immigrant waves, but are much more likely to be working in low-skilled occupations. The increasing share of new immigrants in low-skill, low-paid jobs seems to have led to the emergence of a gap between the wages of new immigrants and UK-born workers. The implications of these findings for overall productivity and the supply side of the economy are complex. |
| Autumn 2002 | Ageing
and the UK economy
(66k) (by Garry Young of the Bank's Domestic Finance Division). This article argues that overall living standards in the United Kingdom are set to double over the next 50 years alongside a sharp increase in the proportion of people over retirement age. While there are clear risks to this outlook, these would be present even without demographic change. Nevertheless an ageing population does appear to increase the risks to the financial welfare of individuals, especially in their old age. If people living longer do not save more when they are working, then either they have to consume less in their old age or work for longer than would have been the case had greater provision been made for retirement. This risk is heightened by general uncertainty about asset returns which becomes more important as the number of people reliant on private pensions increases. |
