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Decomposing changes in the aggregate labor force participation rate

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  • Julie L. Hotchkiss

Abstract

This paper presents a simple methodology for decomposing changes in the aggregate labor force participation rate (LFPR) over time into demographic group changes in labor force participation behavior and in population share. The purpose is to identify the relative importance of behavioral changes and population changes as driving forces behind changes in the aggregate LFPR.

Suggested Citation

  • Julie L. Hotchkiss, 2009. "Decomposing changes in the aggregate labor force participation rate," FRB Atlanta Working Paper 2009-06, Federal Reserve Bank of Atlanta.
  • Handle: RePEc:fip:fedawp:2009-06
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    File URL: http://www.frbatlanta.org/filelegacydocs/wp0906.pdf
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    References listed on IDEAS

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    1. Chinhui Juhn & Simon Potter, 2006. "Changes in Labor Force Participation in the United States," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 27-46, Summer.
    2. Stephanie Aaronson & Bruce Fallick & Andrew Figura & Jonathan Pingle & William Wascher, 2006. "The Recent Decline in the Labor Force Participation Rate and Its Implications for Potential Labor Supply," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 37(1), pages 69-154.
    3. Julie L. Hotchkiss, 2006. "Changes in behavioral and characteristic determination of female labor force participation, 1975-2005," Economic Review, Federal Reserve Bank of Atlanta, issue Q 2, pages 1-20.
    4. Katharine Bradbury & Jane Katz, 2005. "Women's rise: a work in progress," Regional Review, Federal Reserve Bank of Boston, issue Q 1, pages 58-67.
    5. Bruce C. Fallick & Jonathan F. Pingle, 2006. "A cohort-based model of labor force participation," Finance and Economics Discussion Series 2007-09, Board of Governors of the Federal Reserve System (U.S.).
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Lee, R., 2016. "Macroeconomics, Aging, and Growth," Handbook of the Economics of Population Aging, Elsevier.
    2. Fujita, Shigeru, 2014. "On the causes of declines in the labor force participation rate," Research Rap Special Report, Federal Reserve Bank of Philadelphia, issue Feb.
    3. repec:kap:iaecre:v:23:y:2017:i:3:d:10.1007_s11294-017-9646-8 is not listed on IDEAS
    4. Fernando Siqueira Dos Santos, 2016. "Okun’S Law And Labor Productivity In Brazil," Anais do XLIII Encontro Nacional de Economia [Proceedings of the 43rd Brazilian Economics Meeting] 232, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].

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    Keywords

    Labor supply;

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