Adjusted Employment-to-Population Ratio as an Indicator of Labor Market Strength

28 Pages Posted: 18 Jan 2015

See all articles by Julie L. Hotchkiss

Julie L. Hotchkiss

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

Multiple version iconThere are 2 versions of this paper

Date Written: August 2014

Abstract

As a measure of labor market strength, the raw Employment-to-Population ratio (EPOP) confounds employment outcomes with labor supply behavior. Movement in the EPOP depends on the relative movements of the employment rate (one minus the unemployment rate) and the labor force participation rate. This paper proposes an adjustment to the calculation of the EPOP, using individual micro data to account for both individual characteristics and the probability of labor force participation, which can used to assess the strength of the labor market.

Suggested Citation

Hotchkiss, Julie L., Adjusted Employment-to-Population Ratio as an Indicator of Labor Market Strength (August 2014). Andrew Young School of Policy Studies Research Paper Series No. 14-14. Available at SSRN: https://ssrn.com/abstract=2551050 or http://dx.doi.org/10.2139/ssrn.2551050

Julie L. Hotchkiss (Contact Author)

Federal Reserve Bank of Atlanta ( email )

Research Department
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Atlanta, GA 30309-4470
United States
404-498-8198 (Phone)
404-498-8058 (Fax)

Georgia State University - Department of Economics ( email )

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Atlanta, GA 30302-3992
United States

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