Labour Force Participation: Timing and Persistence

Kim B. Clark and Lawrence Summers

The Review of Economic Studies, 1982, vol. 49, issue 5, 825-844

Abstract: This paper examines the relative importance of timing and persistence elements in explaining cyclical fluctuations in labour supply. Data from the natural experiment provided by World War II and cross-sectional data on American local labour markets, as well as aggregate time-series data are used in the empirical work. We find little evidence that timing effects play an important role in labour market dynamics. The evidence suggests that views emphasizing persistence are more accurate, and that previous employment tends to raise the probability of subsequent employment.

Date: 1982
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