Labour Force Participation and the Business Cycle: A Comparative Analysis of Europe, Japan and the United States
AbstractUsing OECD data from 1970 until 1995, we estimate systems of labour force participation equations, disaggregated by age and sex, for the United States, Japan, France and Sweden. We simulate the path of participation rates following shocks to GDP and also test for asymmetric responses to shocks occurring in upward and downward phases of the cycle. Our methodology is especially pertinent to the issue of hidden unemployment and the "discouraged worker effect". We find that this effect is essentially a female phenomenon with a particular concentration among 45 to 54 year olds.
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Bibliographic InfoPaper provided by Business School - Economics, University of Glasgow in its series Working Papers with number 9802.
Date of creation: Feb 1998
Date of revision:
Participation rates; business cycle; asymmetric responses; discouraged worker effects;
Find related papers by JEL classification:
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
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