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Labour force participation across Europe: a cohort-based analysis
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies. RWTH Aachen University, Germany .
2014 (English)In: Empirical Economics, ISSN 0377-7332, E-ISSN 1435-8921, Vol. 46, no 4, 1385-1415 p.Article in journal (Refereed) Published
Abstract [en]

We use a cohort-based model to analyse the determinants of labour force participation in six European economies, focusing on age and cohort effects as factors explaining differences in participation behaviour across countries. Cohort effects are particularly relevant for women with those born in the late 1960s and early 1970s more likely to participate over the life-cycle. Our results suggest that cohort effects can be interpreted as evolving social norms or preferences towards participating in the labour market according to Fernandez (NBER working paper no. 13373, 2007). We find substantial variation in the estimated age and cohort effects across European countries: cohort effects can account for a substantial part of the recent increase in participation in Spain, the Netherlands and Germany, and a positive, but smaller part of in the increase in participation of the UK, Italy and France. Looking forward, positive cohort effects could help counteract the downward impact of population ageing on participation.

Place, publisher, year, edition, pages
2014. Vol. 46, no 4, 1385-1415 p.
Keyword [en]
Labour force participation, Cohort analysis, Labour market institutions, Cross-country analysis
National Category
URN: urn:nbn:se:su:diva-105185DOI: 10.1007/s00181-013-0716-3ISI: 000335660300009OAI: diva2:732552


Available from: 2014-07-04 Created: 2014-06-24 Last updated: 2015-02-11Bibliographically approved

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Balleer, Almut
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