Business & Money | Economics

Declining Labor Force Attachment and Downward Trends in Unemployment and Participation Federal

by Reserve Board

2020-04-24 07:46:26

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The US labor market witnessed two apparently unrelated secular movements in the last 30 years: a decline in unemployment between the early 1980s and the early 2000s, and a decline in participation since the early 2000s. Using CPS micro data and a... Read more
The US labor market witnessed two apparently unrelated secular movements in the last 30 years: a decline in unemployment between the early 1980s and the early 2000s, and a decline in participation since the early 2000s. Using CPS micro data and a stock flow accounting framework, we show that a substantial, and hitherto unnoticed, factor behind both trends is a decline in the share of nonparticipants who are at the margin of participation. A lower share of marginal nonparticipants implies a lower unemployment rate, because marginal nonparticipants enter the labor force mostly through unemployment, while other nonparticipants enter the labor force mostly through employment. Less

Book Details

File size8.50(w)x11.00(h)x0.0
Print pages26
PublisherCreateSpace Publishing
Publication date November 14, 2014
ISBN9781503223684
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Reserve Board
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