Lecture 2 Juhn Potter Presentation PDF

Lecture 2 Juhn Potter Presentation PDF - Why did womens LFP...

Info iconThis preview shows pages 1–17. Sign up to view the full content.

View Full Document Right Arrow Icon
Changes in Labor Force Participation Juhn/Potter JEP 06
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Measuring the Labor Force Labor Force (LF) = Employed + Unemployed Labor Force Participation Rate = LF/Pop In 2005 Civilian Non-Institutionalized Population (16 and older) = 226 Mil. 1% change in LFPR => 2.26 Mil. people
Background image of page 2
The Labor Force … Is a measure of aggregate labor supply Is Needed to construct a measure of potential GDP Is used in projection for Social Security Fact: Labor Force Participation has increased continuously since the 1960s
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
What happened?
Background image of page 4
Male Labor Force Participation
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Female Labor Force Participation
Background image of page 6
Changes in the Labor Force Participation Rate The change in the LFP rate can come from two sources Changes in the LFP rates of subgroups (race, gender, age) i.e. 25-54 year olds 1975: 50% 1996: 58% Changes in the weights of the subgroups Table 1 shows a decomposition by age groups => We see three things
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 8
TANF and EITC
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 10
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 12
Background image of page 13

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 14
Background image of page 15

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 16
Background image of page 17
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Why did womens LFP rate increase? Demand-side factors Manufacturing/Service Information Tech Supply-side factors Higher divorce rates Labor-saving household technology Changes in Societal Norms Higher wages Changed fertility patterns (children become more expensive) resulting in changed human capital investment and labor force attachment for women of different cohorts. Male Labor Force Participation LFP rate of prime-aged men (25-44) fell 6% =>represented 40% of labor force in 1969 We expect them to work Less demand for low-skill workers Power Couples The Future? Increase in LFP rate of women seems to be played out LFP rate of older workers likely to increase (Medicare eligibility, higher social security age) Less generous disability benefits may stop the exit of low-skilled men => Strong Growth in LFP rate seems to be over...
View Full Document

Page1 / 17

Lecture 2 Juhn Potter Presentation PDF - Why did womens LFP...

This preview shows document pages 1 - 17. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online