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Whither Labor Force Participation?

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Abstract

Halting a nearly decade-long downward trend, the U.S. labor force participation rate (LFPR) has flattened since 2016, fluctuating within a narrow range a little below 63 percent. What role has the economy played in this change and what can we expect for the future? In this post, we investigate the extent to which the recent flattening of participation can be attributed to the simultaneous robust improvement in the labor market. We also assess the future path of participation in the medium run should labor market conditions improve further.

Suggested Citation

  • Rene Chalom & Fatih Karahan & Laura Pilossoph & Giorgio Topa, 2018. "Whither Labor Force Participation?," Liberty Street Economics 20180910, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:87274
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    Keywords

    Labor Force Participation;

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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