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Changes in labor participation and household income

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Abstract

The percentage of people active in the labor force has dropped substantially over the past 15 years. Part of this decline appears to be the result of secular factors like the aging of the workforce. However, the participation rate among people in their prime working years?ages 25 to 54?has also fallen. Recent research suggests this decline among prime-age workers can be attributed in large part to lower participation from among the higher-income half of U.S. households.

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  • Robert Hall & Nicolas Petrosky-Nadeau, 2016. "Changes in labor participation and household income," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    • Handle: RePEc:fip:fedfel:00080
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    Cited by:

    1. Verdugo, Gregory & Allègre, Guillaume, 2020. "Labour force participation and job polarization: Evidence from Europe during the Great Recession," Labour Economics, Elsevier, vol. 66(C).
    2. James Bullard & Aarti Singh, 2020. "Nominal GDP Targeting with Heterogeneous Labor Supply," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 52(1), pages 37-77, February.
    3. John G. Fernald & Robert E. Hall & James H. Stock & Mark W. Watson, 2017. "The Disappointing Recovery of Output after 2009," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 48(1 (Spring), pages 1-81.
    4. repec:hal:spmain:info:hdl:2441/4igrl22i129kl9t3bjsriribbs is not listed on IDEAS

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