Changes in labor participation and household income

Robert Hall () and Nicolas Petrosky-Nadeau

FRBSF Economic Letter, 2016

Abstract: The percentage of people active in the labor force has dropped substantially over the past 15 years. Part of this decline appears to be the result of secular factors like the aging of the workforce. However, the participation rate among people in their prime working years?ages 25 to 54?has also fallen. Recent research suggests this decline among prime-age workers can be attributed in large part to lower participation from among the higher-income half of U.S. households.

Date: 2016
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