On the Sidelines

Abstract

For more than a century, labor force participation rates of men have been falling, representing one of the most significant trends in the labor market. The concomitant rise in non-participation of prime age men has been attributed to both cyclical and structural factors. Over the past two decades, participation rates of prime age men have fallen by almost 5%, representing both a problem and a paradox. The author describes changes in men's labor force participation, focusing on human capital and demographic variables, and then estimates non-participation of prime age men over selected years. A model of labor/ leisure choice and estimation of non-participation over selected years is presented using a probit model.