The shadow labor supply and its implications for the unemployment rate
AbstractIn the wake of the Great Recession there has been a sharp rise in the number of people who indicate they want a job, but are not actively seeking one. This group, on the periphery of the labor market, may be viewed as a "shadow labor supply." Since they are not actively seeking work, they are not counted by the government as unemployed and not considered part of the labor force. But if many start seeking jobs as the economy recovers, the unemployment rate could rise or at least slow its descent. Davig and Mustre-del-Río analyze possible flow rates from this group and other non-employed groups into employment or into official unemployment. They find the shadow labor supply will likely affect the unemployment rate only modestly, but potential variation in labor market participation among the entire non-employed population may have greater impact.
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Bibliographic InfoArticle provided by Federal Reserve Bank of Kansas City in its journal Economic Review.
Volume (Year): (2013)
Issue (Month): Q III ()
Other versions of this item:
- Davig, Troy A. & Mustre-del-Rio, Jose, 2013. "The shadow labor supply and its implications for the unemployment rate," Macro Bulletin, Federal Reserve Bank of Kansas City, pages 1-2, August.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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