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The Uneven Recovery in Prime-Age Labor Force Participation

Author

Listed:
  • Thao Tran
  • Didem Tuzemen

Abstract

The labor force participation rate of prime-age individuals (age 25 to 54) in the United States declined dramatically during and after the Great Recession. Although the prime-age labor force participation rate has been increasing since mid-2015, it remains below its pre-recession level. Understanding the reasons for this decline requires detailed analysis; aggregate statistics on labor force participation may mask potential differences in labor market outcomes by sex or educational attainment. Didem Tzemen and Thao Tran identify these differences, finding that prime-age men and women without a college degree experienced larger declines in their labor force participation rates during the recession than their college-educated counterparts. The disappearance of routine jobs over the last few decades may explain these declines. In addition, they find that only prime-age women with a college degree have seen their labor force participation rate fully recover to its pre-recession level, although their participation rate remains well below that of both college-educated and non-college-educated men.

Suggested Citation

  • Thao Tran & Didem Tuzemen, 2019. "The Uneven Recovery in Prime-Age Labor Force Participation," Economic Review, Federal Reserve Bank of Kansas City, issue Q III, pages 21-41.
    • Handle: RePEc:fip:fedker:00081
    DOI: 10.18651/ER/3q19TuzemenThao
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    More about this item

    Keywords

    Labor; Prime-age individuals; Labor Force Participation;
    All these keywords.

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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