Throughout this century the British population has aged. In a recent Discussion Paper, Research Fellow Pat Thane attempts to summarize what is known about the effect of this ageing process on the economy, in particular on labour supply. She also suggests those areas for future research which could best inform current and future policy discussions.

The field she surveys is very broad. Among the issues discussed are the spread of the practice of earlier retirement, especially since World War Two, and the differing experiences of both ageing men and women. The effects of the demographic shift upon patterns of demand for housing, education, health, social security and other social services, on public expenditure and the allocation of private resources, are also important topics. Thane notes that the ratio of dependents to active population is not determined by demographic factors alone but also by shifts in policy and custom, concerning the age of entry to and exit from the labour force, i.e. the ages at which preparation for work ends and retirement begins.

The reasons for choice of retirement ages require examination. The retirement age does not, however, mark a clear distinction between dependents and others: many women do not retire from their main occupation - running a household - until late ages. Women and men who do retire from paid employment may remain active contributors to the economy through part-time work or services given to or exchanged with family and friends. Hence older people may make a positive contribution to the economy which is underestimated and very difficult to quantify. Even those who cannot make such a contribution may depend less upon state services and public expenditure than upon the resources of family and friends, just as they appear to have done in the past. This seems likely to continue in the future and should be taken into account by policy makers, as much as should the real increase in demand by the very elderly upon state services since the late nineteen forties.

The current situation of an ageing population in a period of heavy unemployment is historically new. Thane nevertheless argues that evidence from the past, especially the extensive discussions of ageing which took place in the post-1945 period can help to clarify current problems.