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Labour force participation across Europe: a cohort-based analysis

Author

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  • Almut Balleer

    ()

  • Ramon Gomez-Salvador
  • Jarkko Turunen

Abstract

We use a cohort-based model to analyse the determinants of labour force participation in six European economies, focusing on age and cohort effects as factors explaining differences in participation behaviour across countries. Cohort effects are particularly relevant for women with those born in the late 1960s and early 1970s more likely to participate over the life-cycle. Our results suggest that cohort effects can be interpreted as evolving social norms or preferences towards participating in the labour market according to Fernandez (NBER working paper no. 13373, 2007 ). We find substantial variation in the estimated age and cohort effects across European countries: cohort effects can account for a substantial part of the recent increase in participation in Spain, the Netherlands and Germany, and a positive, but smaller part of in the increase in participation of the UK, Italy and France. Looking forward, positive cohort effects could help counteract the downward impact of population ageing on participation. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Almut Balleer & Ramon Gomez-Salvador & Jarkko Turunen, 2014. "Labour force participation across Europe: a cohort-based analysis," Empirical Economics, Springer, vol. 46(4), pages 1385-1415, June.
  • Handle: RePEc:spr:empeco:v:46:y:2014:i:4:p:1385-1415
    DOI: 10.1007/s00181-013-0716-3
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Marco Pautasso, 2015. "The Italian University Habilitation and the Challenge of Increasing the Representation of Women in Academia," Challenges, MDPI, Open Access Journal, vol. 6(1), pages 1-16, March.
    2. Stephanie Aaronson & Tomaz Cajner & Bruce Fallick & Felix Galbis-Reig & Christopher Smith & William Wascher, 2014. "Labor Force Participation: Recent Developments and Future Prospects," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 45(2 (Fall)), pages 197-275.
    3. repec:eso:journl:v:48:y:2017:i:1:p:27-60 is not listed on IDEAS
    4. Liying Luo & James Hodges, 2019. "The Age-Period-Cohort-Interaction Model for Describing and Investigating Inter-Cohort Deviations and Intra-Cohort Life-Course Dynamics," Papers 1906.08357, arXiv.org.
    5. repec:nzb:nzbbul:apr2018:2 is not listed on IDEAS
    6. Stephen Byrne & Martin D. O’Brien, 2017. "Understanding Irish Labour Force Participation," The Economic and Social Review, Economic and Social Studies, vol. 48(1), pages 27-60.

    More about this item

    Keywords

    Labour force participation; Cohort analysis; Labour market institutions; Cross-country analysis; J11; J21;

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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