Decomposing Changes in the Aggregate Labor Force Participation Rate

Hotchkiss, Julie L.

doi:10.2139/ssrn.1433124

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Decomposing Changes in the Aggregate Labor Force Participation Rate

Federal Reserve Bank of Atlanta Working Paper 2009-6

10 Pages Posted: 13 Jul 2009

See all articles by Julie L. Hotchkiss

Julie L. Hotchkiss

Federal Reserve Bank of Atlanta; Georgia State University - Department of Economics

Date Written: March 2009

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.

Keywords: labor force participation, decomposition, forecasting

JEL Classification: J11, J21, E24

Suggested Citation: Suggested Citation

Hotchkiss, Julie L., Decomposing Changes in the Aggregate Labor Force Participation Rate (March 2009). Federal Reserve Bank of Atlanta Working Paper 2009-6, Available at SSRN: https://ssrn.com/abstract=1433124 or http://dx.doi.org/10.2139/ssrn.1433124