Labour Market Participation Rate in the Euro Area: Performance and Outlook, a Long-Term View

11 Pages Posted: 1 Mar 2018

Date Written: January 11, 2018

Abstract

This article analyses the trajectory and the main explanatory factors of changes in the labour market participation rate in the euro area in recent decades. First, these changes are compared with the United States, highlighting the extraordinary convergence that has taken place between the two areas owing to the momentum in the European labour market and the declining secular trend on the other side of the Atlantic. Second, the increase in participation in the euro area was led by females, particularly as a result of the higher probability of new cohorts joining the labour market against a background of significant socio-educational changes. In any event, in view of the demographic ageing in progress and the progressive exhaustion of the above-mentioned changes, the focus is on the need for specific policies aiming to raise labour participation of such population groups where there is still room to do so, i.e. older workers, in general, and women in countries where the gender gap is still large.

Suggested Citation

Fernández, Cristina and Martínez Turégano, David, Labour Market Participation Rate in the Euro Area: Performance and Outlook, a Long-Term View (January 11, 2018). Banco de Espana Article 1/18. Available at SSRN: https://ssrn.com/abstract=3131750

Cristina Fernández (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

David Martínez Turégano

BBVA ( email )

Paseo de la Castellana 81, 7th floor
Madrid, Madrid 28046
Spain

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