Comments from the Bank of England's Broadbent in Frankfurt:
- Negative 'composition effects' on UK wages and productivity might fade as Eurozone grows faster
- Demand for low-skilled labor partly driven by underinvestment in low skilled immigrants
- Skew towards low skilled employment helps explain weak UK productivity and pay
Broadbent is looking for an explanation for why productivity has struggled so badly in the UK. It's a hot topic domestically at the moment but generations of economists have tried to tackle questions about productivity and have come up short.
