scholarly journals The Labor Force Participation Rate: A Rexamination Of The Determinants Of Its Decline

2015 ◽  
Vol 31 (6) ◽  
pp. 2283
Author(s):  
Patrick J. Litzinger ◽  
John H. Dunn
Keyword(s):  
Labor Force ◽  
Labor Force Participation ◽  
Participation Rate ◽  
Safety Net ◽  
The United States ◽  
Labor Force Participation Rate ◽  
Structural Determinants ◽  
Public And Private ◽  
Primary Determinant ◽  
The Impact

The U.S. Labor Force Participation Rate (LFPR) is defined as the number of people in the labor force as a percentage of the civilian noninstitutional population 16 years and over.  In a paper published in November, 2013, we examined the determinants of the decline in the LFPR from a 1998 peak of 67.2% to then, 63.3%.  Consensus of a number of economic studies at that time was that the primary determinant of the decline was cyclical and that an improving economy would stop, if not reverse, the downward trend. Since that time the unemployment rate has declined from 7.2% to 5.3%.  However, the LFPR has continued its decline to 62.6%.  Structural issues in the economy would appear to have far greater effect on LFPR decline than previously believed. In this paper we examine the following classes of structural determinants and their effects on LFPR: demographics, including not only the prime working cohort of ages 25 to 54, but also those of retirement age; the impact of a welfare system that appropriately provides a critical safety net, but one that reduces incentive to work through disability payments, extended unemployment benefits, and other subsidies;  education for both those of a higher level of attainment, as well as an underclass that no longer receives training by business, but must rely on both public and private vocational education; and finally the consequences of globalization on the economy, including the virtual disappearance of semi-skilled industries in the United States that heretofore have provided jobs for high school graduates.

scholarly journals Changes in Labor Force Participation in the United States

2006 ◽  
Vol 20 (3) ◽  
pp. 27-46 ◽  
Author(s):  
Chinhui Juhn ◽  
Simon Potter
Keyword(s):  
United States ◽  
Labor Force ◽  
Labor Force Participation ◽  
Participation Rate ◽  
The United States ◽  
Labor Force Participation Rate ◽  
Demographic Trends ◽  
Percentage Points ◽  
The Social ◽  
Economic Downturns

The labor force participation rate in the United States increased almost continuously for two-and-a-half decades after the mid-1960s, pausing only briefly during economic downturns. The pace of growth slowed considerably during the 1990s, however, and after reaching a record high of 67.3 percent in the first quarter of 2000, participation had declined by 1.5 percentage points by 2005. This paper reviews the social and demographic trends that contributed to the movements in the labor force participation rate in the second half of the twentieth century. It also examines the manner in which developments in the 2000s reflect a break from past trends and considers implications for the future.

scholarly journals Growth of oil/gas sectors and non oil/gas trade: The impact on labor-force participation rates in Indonesia

2018 ◽  
Author(s):  
Andi Sessu
Keyword(s):  
Economic Growth ◽  
Labor Force ◽  
Labor Force Participation ◽  
Oil And Gas ◽  
Participation Rate ◽  
Labor Force Participation Rate ◽  
Coefficient Of Determination ◽  
Participation Rates ◽  
The Impact ◽  
Oil Gas

Export trade balance, oil and non-oil imports, Indonesia is in an active state or economy to prosper, while the results of multiple regression analysis showed that the export of non oil/gas, non oil/gas import, oil and gas imports and economic growth positive effect on the labor force participation rate, which means every increased four variables also increased labor force participation rate, while oil and gas exports have negative effect means that any increased export of oil and gas resulting in a decline in labor force participation rates and significant effect of all the variables of the labor force participation rate in Indonesia. Multiple correlation coefficients obtained r = 0.998 shows the effect of variable export of non oil/gas, non oil/gas import, export of oil and gas, oil and gas imports, economic growth together very strong and the coefficient of determination together the five variables can be R = 0.996 shows the percentage contribution of influence together of 99% means that only 0.01% contribution of other variables influence the level of labor force participation in Indonesia. It can be concluded that the development of oil and gas trade and non-oil and gas in Indonesia still need cooperation between individual communities, private sector, civil society and government in an effort to increase trade in Indonesia, because it is very big influence on the labor force participation rate that could lower the unemployment rate and can automatically reducing poverty, because unemployment and poverty in Indonesia is still high when compared with some other countries in the world

scholarly journals The Labor Force Participation Rate: An Examination Of The Determinants Of Its Recent Precipitous Decline

2013 ◽  
Vol 29 (6) ◽  
pp. 1873
Author(s):  
Patrick J. Litzinger ◽  
John H. Dunn, Jr.
Keyword(s):  
Labor Force ◽  
Labor Force Participation ◽  
Participation Rate ◽  
Safety Net ◽  
Labor Force Participation Rate ◽  
Educational Institutions ◽  
Ageing Society ◽  
Precipitous Decline ◽  
And Gender ◽  
The U.S

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.

Rural Nonfarm Households: Leaving the Farm and the Retirement of Older Men, 1860–1980

1994 ◽  
Vol 18 (1) ◽  
pp. 55-75 ◽  
Author(s):  
Jon R. Moen
Keyword(s):  
United States ◽  
Labor Force ◽  
Labor Force Participation ◽  
Participation Rate ◽  
Older Men ◽  
The United States ◽  
Labor Force Participation Rate ◽  
Participation Rates ◽  
Urban Households

The fall in the labor force participation rate of older men in the United States has been dramatic. In 1860 approximately 76% of men 65 and older were in the labor force. Today less than 20% work. Much of the decline has been explained in terms of a shift from agricultural occupations to manufacturing or industrial occupations, where participation historically has been lower at older ages. Participation rates, however, appear to have been constant in both farm and urban households through 1930, thus challenging the thesis that industrialization and urbanization were causes of the fall in the participation rate of older men.

Labor Force Trends and Immigration in Europe

2005 ◽  
Vol 39 (3) ◽  
pp. 637-662 ◽  
Author(s):  
Serge Feld
Keyword(s):  
Labor Force ◽  
European Community ◽  
Labor Force Participation ◽  
Participation Rate ◽  
Labor Force Participation Rate ◽  
Social Security Systems ◽  
Security Systems ◽  
Early Effect ◽  
Demographic Situation ◽  
National Characteristics

Labor force trends up to 2025 for the fifteen countries (before May 1, 2004) of the European Community are examined. Will demographic decline have an early effect on manpower volume? An estimation is made to determine whether present migratory flow levels in these countries will be sufficient to counter labor force stagnation. Manpower trend scenarios are proposed for each country. They show highly contrasting situations. These countries favor different policies for mobilizing and increasing their manpower volume. There is wide divergence between the various EU countries as concerns their demographic situation and labor force participation rate as well as their social security systems. Considering these highly diverse national characteristics, the difficulty in arriving at a consensus on EU migratory policy harmonization is stressed.

scholarly journals Female Labor Market Participation and Economic Growth: The Case of Pakistan

2017 ◽  
Vol 4 (2) ◽  
pp. 217 ◽  
Author(s):  
Adnan Khaliq ◽  
Dilawar Khan ◽  
Sultan Akbar ◽  
Muhammad Hamayun ◽  
Barkat Ullah
Keyword(s):  
Economic Growth ◽  
Labor Force ◽  
Labor Force Participation ◽  
Participation Rate ◽  
Female Labor Force Participation ◽  
Labor Force Participation Rate ◽  
Policy Implications ◽  
Series Data ◽  
Female Labor ◽  
Adf Test

Female labor force plays a significant role in the economic development of a country. The core objective of this paper is to examine the nexus between female labor force participation rate and Pakistan’s economic growth using time series data for the period 1990-2014. The data was extracted from World Development Indicators database. Augmented-Dickey Fuller (ADF) test was applied to examine the data for unit root. The results show that both the variables--- female labor force participation rate and economic growth---are stationary at first difference i.e. I(1). The error correction model (ECM) and Johansen co-integration tests were used to examine the co-integration relation between the variables. The econometric results conclude that there is long-run and a U-shaped link between economic growth and women labor force participation rate of Pakistan. The results conclude that lower female labor force participation rate leads to lower economic growth in Pakistan. This paper has important policy implications, suggests that policies intend to remove such barriers could help to enhance the Pakistan’s economic growth.

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