A Meta-Analysis of the Decline in the Labor Force Participation Rate

26 Pages Posted: 11 Sep 2018  

Ananth Seshadri

University of Wisconsin - Madison - Department of Economics

Date Written: July 2018

Abstract

This project explores the causes behind the recent decline in the Labor Force Participation (LFP) rate. The analysis examines the evolution of the LFP rate for different demographic groups to gauge the effect of demographic changes. An integral part of the project is an investigation of the flows of workers into and out of the labor force to determine whether the LFP rate has been declining because more workers are leaving or because fewer workers are entering the labor market. The project also studies the evolution of wages and finds that the decline in the LFP rate is often accompanied by a declining real wage, which is indicative of the relative importance of demand versus supply factors.

Keywords: labor force participation, demography

Suggested Citation

Seshadri, Ananth, A Meta-Analysis of the Decline in the Labor Force Participation Rate (July 2018). Michigan Retirement Research Center Research Paper No. 2018-381. Available at SSRN: https://ssrn.com/abstract=3240791 or http://dx.doi.org/10.2139/ssrn.3240791

Ananth Seshadri (Contact Author)

University of Wisconsin - Madison - Department of Economics ( email )

1180 Observatory Drive
Madison, WI 53706
United States
608-262-6196 (Phone)
608-263-3876 (Fax)

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