2014) have concluded that all of the 2007-2014 decline in the LFPR
has been due to secular factors and none to cyclical factors.
As a result, overall LFPR
stood at 66% in 2007 on the eve of the Great Recession--down from the 67.
43 6766 TABLE 2 Descriptive Statistics: Municipalities' Controls M SD Min Max N LFPR
To illustrate the impact that a more significant cyclical component would have on the near-term labor force participation rate, we construct the cyclical LFPR
Many researchers have tried to identify the source of the relatively recent decline in the aggregate LFPR
in the United States.
The male curve shows a typical inverted-U shape, with the LFPR
peaking between 25-50 years of age.
is a useful complement to other indicators, such as employment and the unemployment rate, in assessing labor market conditions.
Both total WPR and LFPR
do not distinguish between the child labour and adult labour.
In sum, the data on LFPR
and unemployment rates from several former socialist countries indicate that the transition has not systematically left more women than men without work.
Robert Michael was the first to suggest that the rise in LFPR
was caused by increases in divorce.
The male LFPR
debate of the 1970s and 1980s specified three causal forces for explaining trends in older male labour force participation rates: first, increased private wealth and the choice of earlier substitution of leisure for work; second, increased availability and financial attractiveness of social security pensions; third, discouraged worker effects resulting from high levels of unemployment.
That said, there is some indication that severance pay has an impact on the remaining outcome indicators, even if the LFPR
effect is perverse from a conventional (and Lazear) perspective.