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Understanding Irish Labour Force Participation

Author

Listed:
  • Byrne, Stephen

    (Central Bank of Ireland)

  • O'Brien, Martin

    (Central Bank of Ireland)

Abstract

This letter explores developments in the labour force participation rate in Ireland, which has fallen from a pre-recession peak of 64 per cent to approximately 60 per cent today. Given the important role of labour supply in explaining Irish economic growth, we aim to identify the relative infl uence of structural and cyclical factors in the recent dynamics of Irish labour force participation. We find that the recent decline in female participation is entirely a response to the stage in the economic cycle given the weaker labour market, whereas the fall in male and overall participation also refl ects the infl uence of some structural factors. Accordingly a rise in the participation rate is to be expected in the near term as the economic recovery continues, but in the longer term structural factors will likely constrain further increases in participation.

Suggested Citation

  • Byrne, Stephen & O'Brien, Martin, 2016. "Understanding Irish Labour Force Participation," Economic Letters 01/EL/16, Central Bank of Ireland.
  • Handle: RePEc:cbi:ecolet:01/el/16
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    References listed on IDEAS

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    Cited by:

    1. Masuch, Klaus & Anderton, Robert & Setzer, Ralph & Benalal, Nicholai, 2018. "Structural policies in the euro area," Occasional Paper Series 210, European Central Bank.
    2. Bercholz, Maxime & FitzGerald, John, 2016. "Recent Trends in Female Labour Force Participation in Ireland," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI).
    3. Lozej, Matija, 2018. "Economic Migration and Business Cycles in a Small Open Economy with Matching Frictions," Research Technical Papers 8/RT/18, Central Bank of Ireland.

    More about this item

    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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