Labour force participation in the euro area: a cohort based analysis
AbstractWe use a cohort based model to analyse determinants of labour force participation for disaggregated groups of workers in the euro area and the five largest euro area countries. The model captures age and cohort effects as indicators of (unobserved) determinants of participation behaviour. We use these effects and observed determinants to construct trends and projections of labour supply. Our results suggest that age and cohort effects can account for a substantial part of the recent increase in participation. Cohort effects are particularly relevant for women with those born in the late 1960s and early 1970s more likely to participate over the life-cycle. There is substantial variation in the estimated age and cohort effects across countries. Looking forward, positive cohort effects for women are not large enough to compensate for the downward impact of population ageing on participation rates in the euro area. JEL Classification: J11, J21
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Bibliographic InfoPaper provided by European Central Bank in its series Working Paper Series with number 1049.
Date of creation: May 2009
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Find related papers by JEL classification:
- J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
This paper has been announced in the following NEP Reports:
- NEP-AGE-2009-08-08 (Economics of Ageing)
- NEP-ALL-2009-08-08 (All new papers)
- NEP-EEC-2009-08-08 (European Economics)
- NEP-LAB-2009-08-08 (Labour Economics)
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