| Declining Labor Force Attachment and Downward Trends in Unemployment and Participation Contributor(s): Federal Reserve Board (Author) |
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ISBN: 150322368X ISBN-13: 9781503223684 Publisher: Createspace Independent Publishing Platform OUR PRICE: $12.30 Product Type: Paperback Published: November 2014 |
| Additional Information |
| BISAC Categories: - Political Science | Public Policy - Economic Policy |
| Physical Information: 0.05" H x 8.5" W x 11" (0.19 lbs) 26 pages |
| Descriptions, Reviews, Etc. |
| Publisher Description: 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. |