« 'Balanced-Budget Fundamentalism' | Main | Links for 8-19-14 »

Monday, August 18, 2014

'Understanding the Decline in the Labor Force Participation'

[Long, long travel day today, so just a few quick ones before hitting the road.]

Steven Braun, John Coglianese, Jason Furman, Betsey Stevenson, and Jim Stock:

Understanding the decline in the labour force participation rate in the United States, by Steven Braun, John Coglianese, Jason Furman, Betsey Stevenson, and Jim Stock, Vox EU: The labour force participation rate in the US has fallen dramatically since 2007. This column traces this decline to three main factors: the ageing of the population, cyclical effects from the Great Recession, and an unexplained portion, which might be due to pre-existing trends unrelated to the first two. Of these three, the ageing of the population plays the largest role since it is responsible for half of the decline. Taken together, these factors suggest a roughly stable participation rate in the short-term, followed by a longer-term decline as the baby boomers continue to age. However, policy can play a meaningful role in mitigating this trend. ...

    Posted by on Monday, August 18, 2014 at 05:03 AM in Economics, Unemployment | Permalink  Comments (76)

          


    Comments

    Feed You can follow this conversation by subscribing to the comment feed for this post.