The driving force of labor force participation in developed countries

Ivan Kitov () and Oleg . Kitov
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Oleg . Kitov: Warwick University

No 90, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: The evolution of labor force participation rate is modeled using a lagged linear function of real economic growth, as expressed by GDP per capita. For the U.S., our model predicts at a two-year horizon with RMSFE of 0.28% for the period between 1965 and 2007. Larger part of the deviation between predicted and measured LFP is explained by artificial dislocations in measured time series induced by major revisions to the CPS methodology in 1979 and 1989. Similar models have been developed for Japan, the UK, France, Italy, Canada, and Sweden.

Keywords: labor force participation; real GDP per capita; prediction (search for similar items in EconPapers)
JEL-codes: C2 E6 J2 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab and nep-mac
Date: 2008
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Related works:
Working Paper: The driving force of labor force participation in developed countries (2008)
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