Labour force participation in the euro area: a cohort based analysis

Almut Balleer, Ramón Gómez-Salvador and Jarkko Turunen

No 1049, Working Paper Series from European Central Bank

Abstract: We use a cohort based model to analyse determinants of labour force participation for disaggregated groups of workers in the euro area and the five largest euro area countries. The model captures age and cohort effects as indicators of (unobserved) determinants of participation behaviour. We use these effects and observed determinants to construct trends and projections of labour supply. Our results suggest that age and cohort effects can account for a substantial part of the recent increase in participation. 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. There is substantial variation in the estimated age and cohort effects across countries. Looking forward, positive cohort effects for women are not large enough to compensate for the downward impact of population ageing on participation rates in the euro area. JEL Classification: J11, J21

Keywords: cohort analysis; labour force participation; Labour Market Institutions (search for similar items in EconPapers)
Date: 2009-05
New Economics Papers: this item is included in nep-age, nep-eec and nep-lab
Note: 375755
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37)

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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20091049

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