Please use this identifier to cite or link to this item:
Full metadata record
DC FieldValueLanguage
dc.contributor.authorHotchkiss, Julie L.en_US
dc.identifier.citation|aEconomic Review, Federal Reserve Bank of Atlanta |c0732-1813 |v94 |y2009 |x4en_US
dc.description.abstractHuman capital is a vital component in the production process, so the size of the labor force can profoundly affect the potential for economic growth. In the United States, the overall labor force participation rate (LFPR)the percent of the population supplying labor to the marketbegan to grow in the mid-1960s, mainly because of the rise in women's LFPR. But since 1997 the aggregate LFPR has been generally declining. Many researchers have linked this decline to demographic factors, chiefly the drop in labor force participation among young people and working-age women. This article presents a simple methodology for decomposing changes in the aggregate LFPR over time into demographic group changes in both labor force participation behavior and population shares. The decomposition reveals that a decline in the population shares of working-age men and women was actually the driving force behind the recent drop in the aggregate LFPR, outweighing the effect of the declining participation rates of women and youth. This simple method demonstrates how little information is needed to evaluate the historical evolution of the aggregate LFPR and to make projections of its future path that are a close match to estimates from more complex structural forecasting models.en_US
dc.publisher|aFederal Reserve Bank of Atlanta |cAtlanta, GAen_US
dc.subject.keywordlabor force participationen_US
dc.titleChanges in the aggregate labor force participation rateen_US

Files in This Item:
526.17 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.