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Diane Publishing Books
Labor Force Participation: Recent Developments and Future Prospects
Stephanie Aaronson (au); Tomaz Cajner (au); Bruce Fallick (au); Felix Galbis-Reig (au); Christopher Smith (au); William Wascher (au)
Since 2007, the labor force participation rate has fallen from about 66% to about 63%. The sources of this decline have been widely debated among academics and policymakers, with some arguing that the participation rate is depressed due to weak labor demand while others argue that the decline was inevitable due to structural forces such as the aging of the population. The authors use a variety of approaches to assess reasons for the decline in participation. Their overall assessment is that much -- but not all -- of the decline in the labor force participation rate since 2007 is structural in nature. As a result, while the authors see some of the current low level of the participation rate as indicative of labor market slack, they do not expect the participation rate to show a substantial increase from current levels as labor market conditions continue to improve. Tables and figures. This is a print on demand report.
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