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Discouraged and other marginally attached workers: evidence on their role in the labor market

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  • Yolanda K. Kodrzycki
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    Abstract

    The combination of very low unemployment rates and somewhat limited wage and salary pressures has called into question our ability to measure labor market tightness. One issue is the extent to which labor availability is understated, given the existence of people who are not actively looking for work but express interest in working. This note examines the evidence on discouraged and other marginally attached workers. ; The author concludes that the number of discouraged and other marginally attached workers is extremely low, and their inclusion in an expanded measure of unemployment is unlikely to change the conclusion that the current jobless rate is the lowest in three decades. Marginally attached workers are more concentrated than the unemployed in demographic groups whose employment-population ratios are low. As a group, they are less likely to become employed or remain employed. She finds that the decline in their number in recent years is due in large measure to the success of unemployed workers in finding jobs. Favorable economic conditions serve to limit the number who drop out of the officially measured work force.

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    Bibliographic Info

    Article provided by Federal Reserve Bank of Boston in its journal New England Economic Review.

    Volume (Year): (2000)
    Issue (Month): May ()
    Pages: 35-40

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    Handle: RePEc:fip:fedbne:y:2000:i:may:p:35-40

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    Keywords: Labor market ; Employment (Economic theory) ; Unemployment;

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    2. Hilary Williamson Hoynes, 1999. "The Employment, Earnings, and Income of Less Skilled Workers Over the Business Cycle," JCPR Working Papers, Northwestern University/University of Chicago Joint Center for Poverty Research 85, Northwestern University/University of Chicago Joint Center for Poverty Research.
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    Cited by:
    1. Moon, Weh-Sol, 2009. "Endogenous Labor Force Participation and Firing Costs," MPRA Paper 15749, University Library of Munich, Germany.
    2. Michael Lim, . "Relative Prices in a Frictional Labor Market," GSIA Working Papers, Carnegie Mellon University, Tepper School of Business 2014-E22, Carnegie Mellon University, Tepper School of Business.
    3. Robert E. Hall, 2005. "Job Loss, Job Finding, and Unemployment in the U.S. Economy Over the Past Fifty Years," NBER Working Papers 11678, National Bureau of Economic Research, Inc.

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