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The shadow labor supply and its implications for the unemployment rate

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  • Troy Davig
  • Jose Mustre-del-Rio

Abstract

The number of people wanting work, but not looking for a job, has swelled in recent years. However, their flow rate back into unemployment has been declining, so they will likely only have a modest impact on the unemployment rate.

Suggested Citation

  • Troy Davig & Jose Mustre-del-Rio, 2013. "The shadow labor supply and its implications for the unemployment rate," Macro Bulletin, Federal Reserve Bank of Kansas City, pages 1-2, August.
    • Handle: RePEc:fip:fedkmb:00001
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    References listed on IDEAS

    as
    1. Michael Elsby & Bart Hobijn & Ayşegül Şahin, 2013. "On the Importance of the Participation Margin for Market Fluctuations," Working Paper Series 2013-05, Federal Reserve Bank of San Francisco.
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    7. Robert Shimer, 2012. "Reassessing the Ins and Outs of Unemployment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 15(2), pages 127-148, April.
    8. Willem Van Zandweghe, 2012. "Interpreting the recent decline in labor force participation," Economic Review, Federal Reserve Bank of Kansas City, vol. 97(Q I), pages 5-34.
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    Keywords

    Unemployment;

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