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Asymmetric labour force participation decisions

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  • Julie L. Hotchkiss
  • John C. Robertson

Abstract

This article finds compelling evidence of asymmetric labour force participation decisions across demographic groups in response to changes in labour market conditions. This behaviour is consistent with predictions from the standard labour-leisure choice model and suggests that asymmetry in individual behaviour plays some role in the observed asymmetry of the aggregate unemployment rate. It is estimated that the weighted average difference in response to a one percentage point change in unemployment rates is sizeable when compared to the average monthly change in the aggregate labour force.

Suggested Citation

  • Julie L. Hotchkiss & John C. Robertson, 2012. "Asymmetric labour force participation decisions," Applied Economics, Taylor & Francis Journals, vol. 44(16), pages 2065-2073, June.
    • Handle: RePEc:taf:applec:44:y:2012:i:16:p:2065-2073
    DOI: 10.1080/00036846.2011.558480
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    References listed on IDEAS

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    1. Katharine L. Bradbury, 2005. "Additional slack in the economy: the poor recovery in labor force participation during this business cycle," Public Policy Brief, Federal Reserve Bank of Boston.
    2. H. Naci Mocan & Turan G. Bali, 2010. "Asymmetric Crime Cycles," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 899-911, November.
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    Cited by:

    1. Julie L. Hotchkiss & Robert E. Moore, 2022. "Some Like it Hot: Assessing Longer-Term Labor Market Benefits from a High-Pressure Economy," International Journal of Central Banking, International Journal of Central Banking, vol. 18(2), pages 193-243, June.
    2. Bod’a, Martin & Považanová, Mariana, 2021. "Output-unemployment asymmetry in Okun coefficients for OECD countries," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 307-323.
    3. Paraskevi Salamaliki & Ioannis Venetis, 2014. "Smooth transition trends and labor force participation rates in the United States," Empirical Economics, Springer, vol. 46(2), pages 629-652, March.
    4. Mercè Sala-Rios & Teresa Torres-Solé & Mariona Farré-Perdiguer, 2018. "Immigrants’ employment and the business cycle in Spain: taking account of gender and origin," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 463-490, August.
    5. Jorge Belaire-Franch & Amado Peiró, 2015. "Asymmetry in the relationship between unemployment and the business cycle," Empirical Economics, Springer, vol. 48(2), pages 683-697, March.
    6. Peiró, Amado & Belaire-Franch, Jorge & Gonzalo, Maria Teresa, 2012. "Unemployment, cycle and gender," Journal of Macroeconomics, Elsevier, vol. 34(4), pages 1167-1175.
    7. Brincikova Zuzana & Darmo Lubomir, 2015. "The Impact of Economic Growth on Gender Specific Unemployment in the EU," Scientific Annals of Economics and Business, Sciendo, vol. 62(3), pages 383-390, November.

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