Labor Force Participation and Educational Attainment in the United States

Falzone, Joseph S.

doi:10.1007/s11294-017-9646-8

Cited by 4 publications

(5 citation statements)

References 7 publications

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“…On the other hand, Falzone (2017), when analyzing all age groups, found no effect of changes in education on male LFP. This result is derived from the fact that LFP rates declined relatively uniformly across all levels of educational attainment.…”

Section: Changing Education Levelsmentioning

confidence: 82%

“…In addition to the changes in the size of the demographic groups, described in the previous chapter, the overall decline in the LFPR is a combination of trends differing within specific groups. For example, though overall LFP peaked close to the year 2000, prime-aged male LFP peaked in 1948 and has been slowly declining ever since -but that drop was counteracted by female LFP, which increased steadily and at a faster pace throughout the second half of the 20th century, rising from 29 percent in 1948 to 60 percent in the mid-1990s (Falzone 2017). Figure 2 shows the changes in the LFPR of six broad demographic groups, determined by the interaction of gender with the age-groups: young (18 to 25), prime working-age (26 to 54), and 55 and older.…”

Section: Trends In Lfp Within Population Groups and The Factors Affecmentioning

confidence: 99%

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The Decline in the U.S. Labor Force Participation Rate

2018

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After peaking around the year 2000, the Labor Force Participation Rate (LFPR) of Americans declined substantially, falling faster after the financial crisis of 2007. Since 2015, the LFPR has remained at its lowest in four decades. In this paper, we produce a comprehensive review of the literature investigating the causes of the recent decline in LFPR. We include works from the academic literature as well as gray literature from research institutes and labor market experts, and published and unpublished studies. The literature reviewed signals multiple causes behind this decline. The research on the extent to which the Great Recession had caused the decline establishes that most of it cannot be attributed to cyclical factors. Additionally, the literature examines the relative importance of trend factors, such as long-running demographic patterns, which explain at least part of the decline. The review includes articles that aim to quantify the impact of one or more factors through statistical or econometric analysis or economic modeling. Demographic trends, such as the aging of the Baby Boom Generation, explain a large portion of the decline. The rest of the decline can be attributed to factors that affect the participation rates of specific subpopulations, such as technological innovations and trade, as well as to changes in social programs, such as Social Security Disability Insurance. Some subpopulation trends are clear, but their ultimate causes are not fully understood, as is the case for female and youth LFPRs. We list these factors and point to important areas for future research. Authors' acknowledgementsWe acknowledge the support from the Michigan Retirement Research Center, which made this research possible. We thank Arie Kapteyn for useful comments. Preface After peaking around the year 2000, the Civilian Labor Force Participation Rate of Americans declined substantially. The drop became more pronounced following the financial crisis of 2007, continuing until 2015. The result is that the Labor Force Participation Rate (LFPR) is currently at its lowest level in the last four decades. Understanding the causes of this decline is fundamental in assessing the future of the American workforce and the long-term implications for retirees and in determining policy actions needed. To guide that research, our literature review establishes what is known and identifies the remaining gaps.There has not been a complete review of the literature of these causes, though there has been some partial investigation. For this study, we reviewed, systematically and comprehensively, the literature on the causes of the LFPR decline since 2000. The review includes all the studies found through systematic searches in databases, although the narrative often uses the most current and rigorous study to describe an aspect of the evidence while referring to prior or auxiliary studies as appropriate. This paper begins with an introduction to the subject and a chapter describing the search procedures. It then follows with three chapters d...

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Section: Changing Education Levelsmentioning

confidence: 82%

Section: Trends In Lfp Within Population Groups and The Factors Affecmentioning

confidence: 99%

The Decline in the U.S. Labor Force Participation Rate

2018

View full text Add to dashboard Cite

show abstract

“…On the other hand, Falzone (2017), when analyzing all age groups, finds no effect of changes in education on male LFP. This result is derived from the fact that LFP rates declined relatively uniformly across all levels of educational attainment.…”

Section: Factors That Affect Labor Force Participation Decisionmentioning

confidence: 99%

“…In addition to the changes in the size of the demographic groups, described in the previous section, the overall decline in the LFPR is a combination of trends differing within specific groups. For example, though overall LFPR peaked close to the year 2000, prime-aged male LFPR peaked in 1948 and has been slowly declining ever since -but that drop was counteracted by female LFPR, which increased steadily and at a faster pace throughout the second half of the 20th century, rising from 29% in 1948 to 60% in the mid-1990s (Falzone, 2017). Figure 2 shows the changes in the LFPR of six broad demographic groups, determined by the interaction of gender with the age-groups: young (18-25), prime working-age (26-54), and 55 and older.…”

Section: Trends In Lfp Within Population Groups and The Factors Affecmentioning

confidence: 99%

The Decline in the U.S. Labor Force Participation Rate: A Literature Review

Pérez‐Arce

Prados

2020

Journal of Economic Surveys

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After peaking around the year 2000, the Labor Force Participation Rate (LFPR) of Americans declined substantially. The weakening in LFPR was faster after the financial crisis of 2007, the Great Recession. Since 2015, the LFPR has remained at its lowest in four decades. This paper constitutes a comprehensive review of the literature investigating the causes of the LFPR's recent decline. We determine what is known and identify the remaining gaps. The literature reviewed signals multiple causes behind this decline. Trend factors, such as long-running demographic patterns, explain an important part of the decline. The research on the extent to which the Great Recession caused the decline establishes that most of the drop cannot be attributed to cyclical factors. Part of the decline in LFPR can be attributed to factors such as technological innovations and trade, which affect the participation rates of specific subpopulations, as well as to changes in social programs, like Social Security Disability Insurance. Some subpopulation trends are clear, but their ultimate causes are not fully understood, as is the case for the LFPRs of women and youth. We list these factors and point to important areas for future research.

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“…According to Cahyadin and Sarmidi (2019), if a country wants to produce workers who are capable of competing in the labor market, it must increase the amount of money it invests in education. Because higher levels of education are linked to increased levels of success in the labor market, it stands to reason that improving one's own level of education would result in an increase in the number of work options available to that individual (Cahyadin & Sarmidi, 2019;Falzone, 2017). As a consequence of this, much attention is paid to the educational sectors of both industrialized countries and developing ones (Ozatac, Taspinar, & Eren, 2018).…”

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confidence: 99%

The Funding of Education and The Country's Overall Economic Growth in Central Asia

Hamid Waqas

2021

ABCIEF

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This study aims to provide the groundwork for further investigations into the relationship between educational expenditures and economic growth. This investigation lends credence to earlier conclusions about the amount of money spent by the federal government on education. Both the state governments and the federal government make financial contributions to education; nevertheless, the federal government's planned and operational expenditures employ their resources in a distinct manner. Since our country has had terrible rankings for a number of years and has never even cracked the top ten, one of the most crucial concerns about the money that the government spends on education is: where does it go? This indicates that not enough human capital (HC), which is beneficial to the economy, the people, and the environment, is developed via education expenditure (ECNG). Through the use of EduEx, the purpose of this study was to establish a connection between ECNG and government education funding. According to the findings of this study, EduEx variables at all three levels of education (primary, secondary, and postsecondary) reveal a distinct cointegration link (as shown in the estimated Models 1 and 2). The years 1993 through 2017 are covered in this list of facts. The projected VECM indicates that the benefits of EDuEx operations and development education spending on ECNG won't become obvious for quite some time. According to the findings of this research, ECNG is impacted by the percentage of Uzbeks who have completed postsecondary education. The majority of Uzbekistan's working population has at least a bachelor's degree. The percentage of the working population that has at least some secondary education is unusually high

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Labor Force Participation and Educational Attainment in the United States

Cited by 4 publications

References 7 publications

The Decline in the U.S. Labor Force Participation Rate

The Decline in the U.S. Labor Force Participation Rate

The Decline in the U.S. Labor Force Participation Rate: A Literature Review

The Funding of Education and The Country's Overall Economic Growth in Central Asia

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