Interpreting the recent decline in labor force participation
Abstract: At the turn of the 21st century, labor force participation in the United States reversed its decades-long increase and started trending lower. In the four years since the start of the recent recession, the labor force participation rate experienced a far bigger drop than in any previous four-year period. ; To disentangle the roles of long-term trend factors?such as demographic shifts?and the recession in the recent drop in participation, Van Zandweghe examines a variety of evidence, including data on demographic shifts, labor market flows, gender differences, and the effects of long-term unemployment. ; The evidence indicates that long-term trend factors account for about half of the recent decline in labor force participation, with the recession accounting for the other half.
File(s): File format is application/pdf http://www.kansascityfed.org/publicat/econrev/pdf/12q1VanZandweghe.pdf
Provider: Federal Reserve Bank of Kansas City
Part of Series: Economic Review
Publication Date: 2012
Issue: Q I