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Improvement in European labor force participation

Author

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  • Daniel Gros

    (Centre for European Policy Studies, Belgium)

Abstract

Employment and labor force participation (LFP) rates have increased throughout Europe since the 1990s, with little interruption from the Great Recession. While many credit labor market reforms for this progress, ongoing educational expansion might actually be more important. This implies that the overall employment rate of an economy can change if the share of the population with tertiary education increases, even in the absence of any labor market reforms or effects of the business cycle. Taking this compositional effect into account makes it possible to disentangle the impact of reforms.

Suggested Citation

  • Daniel Gros, 2019. "Improvement in European labor force participation," IZA World of Labor, Institute of Labor Economics (IZA), pages 449-449, February.
  • Handle: RePEc:iza:izawol:journl:2019:n:449
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    References listed on IDEAS

    as
    1. Angana Banerji & Sergejs Saksonovs & Huidan Huidan Lin & Rodolphe Blavy, 2014. "Youth Unemployment in Advanced Economies in Europe; Searching for Solutions," IMF Staff Discussion Notes 14/11, International Monetary Fund.
    2. David M. Blau & Ryan M. Goodstein, 2010. "Can Social Security Explain Trends in Labor Force Participation of Older Men in the United States?," Journal of Human Resources, University of Wisconsin Press, vol. 45(2).
    3. Giuseppe Croce & Emanuela Ghignoni, 2012. "Demand and Supply of Skilled Labour and Overeducation in Europe: A Country-level Analysis," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(2), pages 413-439, June.
    4. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    human capital; labor market reforms; tertiary education; aging;

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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