scholarly journals The Long-Lived Cyclicality of the Labor Force Participation Rate

2021 ◽  
Vol 2021 (044) ◽  
pp. 1-48
Author(s):  
Tomaz Cajner ◽  
◽  
John Coglianese ◽  
Joshua Montes ◽  
◽  
...  

How cyclical is the U.S. labor force participation rate (LFPR)? We examine its response to exogenous state-level business cycle shocks, finding that the LFPR is highly cyclical, but with a significantly longer-lived response than the unemployment rate. The LFPR declines after a negative shock for about four years—well beyond when the unemployment rate has begun to recover—and takes about eight years to fully recover after the shock. The decline and recovery of the LFPR is largely driven by individuals with home and family responsibilities, as well as by younger individuals spending time in school. Our main specifications measure cyclicality from the response of the age-adjusted LFPR, and we show that it is problematic to use the unadjusted LFPR when estimating cyclicality because local shocks spur changes in the population of high-LFPR age groups through migration. LFPR cyclicality varies across groups, with larger and longer-lived responses.

Author(s):  
Jonada Tafa

This thesis examines the relationship of corruption with economic growth, poverty and gender inequality in Albania. Albania is a developing country with a GDP growth rate of 1.6% (World Bank, 2012) and income inequality is a serious problem that government has to deal with. Regarding gender discrimination a lot of progress is made. The current government counts six female ministers in its body. Corruption in Albania is a widespread phenomenon and is found almost in every sector of life. TI CPI index ranks Albania in the 116 place out of 177 countries observed. To study this relationship a multiple regression analysis is conducted. Data for this analysis correspond to years 2000 to 2012 and is accessed from World Bank database. in this analysis CC from World Bank is the dependent variable, while FDI, GDP growth rate, GNI per Capita, Unemployment Rate, Proportion of Women in Parliamentary Positions and Women's share in Labor Force Participation Rate are the explanatory variables. The first two variables are used as indicators of economic growth. GNI per capita and Unemployment rate account for poverty, while the last two variables account for gender inequality. The results have shown that when the level of FDIs in Albania is increased government performance in control of corruption is improved. From the analysis it is understood that a decrease in unemployment rate would increase government performance in control of corruption. The results of the analysis showed that when unemployment rate increase, CC decreases. Regarding the link of corruption with GDP growth rate and GNI per capita, an inverse relationship is observed. With an increase in either GDP growth rate or GNI per capita, CC will decrease. Even the relationship with number of women in parliament and their share in labor force participation rate with corruption resulted to be negative. An increase in either proportion of women in parliamentary positions or share of them in labor force participation rate has shown to worsen government performance in control of corruption.


2021 ◽  
Vol 5 (2) ◽  
pp. 65-72
Author(s):  
Tory Ariyanto ◽  
Era Yunianto ◽  
Taryadi Taryadi

Unemployment is an economic problem that the central and regional governments must resolve comprehensively and integrated. The open unemployment rate in Pekalongan Regency in the last three years has increased. It is influenced by several factors, one of which is the population growth rate. Likewise, the labor force participation rate has increased. It shows that the increasing availability of the workforce is not accompanied by additional employment and is not proportional to population growth. This study aims to determine the level of open unemployment and labor force participation in the sub-district, whether there is a relationship and mutual influence between sub-districts in Pekalongan Regency. The method used to see the correlation between sub-districts is the spatial analysis method. The method used to analyze the correlation between regions is the Moran's Index and the Moran Scatterplot, while to prove the dependence or spatial effect between regions partially used the LISA test. The test results show the Moran Index for the open unemployment rate of 0,915 and the labor force participation rate of 0,737 with a significance level of 5%. This measurement value shows that the Moran index value is close to 1, which means autocorrelation between neighboring sub-districts on the open unemployment rate and the labor force participation rate. While the LISA test results show that there are seven spatially related H-H districts, meaning that there is a strong correlation between the observed sub-districts and the surrounding districts. The strong correlation between observation sub-districts and their surroundings can be used as a reference for making policies in overcoming open unemployment between sub-districts. The policy for handling open unemployment has become more comprehensive and integrated among sub-districts by seeing that each sub-district has a spatial correlation and affects open unemployment in the district.


2019 ◽  
Vol 3 (2) ◽  
pp. 124-138
Author(s):  
Syamsu Pratama

Economic growth of a region can assess from various aggregate sizes, one of them is GDRP (Gross Regional Domestic Product). Based on theory, GDRP can influenced by several variables, including world commodity prices which have the largest share of GDP, labor force participation rate (LFPR), Human Development Index (HDI), income inequality, open unemployment rate and percentage of the poor. In 2015 Bangka Belitung Islands Province GRDP had a share of around 0.5 percent of Indonesia's GDP. The largest share is West Bangka Regency with 11.46 trillion rupiahs, while the smallest one is East Belitung with 6.112 trillion rupiahs.To find out picture of economic growth and the influence of variable prices of palm oil commodities, LFPR, HDI income inequality, open unemployment and the percentage of the poor on economic growth in the Bangka Belitung Islands Province 2008-2015, the method used is descriptive analysis and panel data regression.The best model for estimating GDRP growth in Bangka Belitung Islands Province in 2008-2015 is the fix effect model with Seemingly Uncorrelated Regression Method. With alpha 5 percent, the variables that significantly influence economic growth are HDI, the percentage of the poor, labor force participation rate (LFPR), income inequality, open unemployment rate and world commodity prices.economic growth


2013 ◽  
Vol 29 (6) ◽  
pp. 1873
Author(s):  
Patrick J. Litzinger ◽  
John H. Dunn, Jr.

The Labor Force Participation Rate (LFPR) is defined as those Americans in the labor force, i.e. above the age of sixteen, below retirement age, who are either actively employed or actively seeking employment. From 1950 until 1998 it rose from 59.2% to 67.2%. Given the near doubling of the U.S. population, its impact on our economy was enormous. However, since 1998 the LFPR has declined steadily to 63.3%. Parallel to this decline, we have seen a polarization of both wealth and income in the U.S. Many economists have examined both trends the decline of LFPR and inequality and have put forth a variety of determinants. These include technology and globalization a decline or hollowing out of the middle class, if you will. Also included are the demographics of an ageing society, and the increased racial and gender participation, but also a workforce that has become only marginally prepared by todays educational institutions. Another class of determinants is the welfare safety net at both the Federal and state levels, including extended unemployment benefits, disability payments and other subsidies. The authors examine each class of determinants, including whether their aspects are cyclical, structural or even part of an ominous trend for our economy.


Author(s):  
Paul A. Swanson

Measured by an increasing labor force participation rate for women, a falling dissimilarity index for occupational sex segregation, and a declining male/female earnings gap, there has been increasing integration of women into the workforce in the U.S. over the last fifty years. This increased diversity should lead to increased productivity, thus inducing profit-maximizing firms to encourage it. However, sexual segregation has persisted for so long that it must be beneficial for the capitalist system as a whole. By keeping women separate and subservient with lower wages than men, firms exploit sexual discrimination and are able to maintain higher profits.


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