The driving force of labor force participation in developed countries
AbstractThe evolution of labor force participation rate is modeled using a lagged linear function of real economic growth, as expressed by GDP per capita. For the U.S., our model predicts at a two-year horizon with RMSFE of 0.28% for the period between 1965 and 2007. Larger part of the deviation between predicted and measured LFP is explained by artificial dislocations in measured time series induced by major revisions to the CPS methodology in 1979 and 1989. Similar models have been developed for Japan, the UK, France, Italy, Canada, and Sweden.
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Bibliographic InfoPaper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 90.
Length: 31 pages
Date of creation: 2008
Date of revision:
labor force participation; real GDP per capita; prediction;
Other versions of this item:
- Ivan O. KITOV, 2008. "The Driving Force of Labor Force Participation in Developed Countries," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 3(3(5)_Fall), pages 203-222.
- Kitov, Ivan & Kitov, Oleg, 2008. "The driving force of labor force participation in developed countries," MPRA Paper 8677, University Library of Munich, Germany.
- C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
- E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-06-07 (All new papers)
- NEP-LAB-2008-06-07 (Labour Economics)
- NEP-MAC-2008-06-07 (Macroeconomics)
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