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Labour Force Participation and the Business Cycle in Mexico

Jonathan Puigvert and Miriam Juarez

No 2019-04, Working Papers from Banco de México

Abstract: This paper studies the labour force participation in Mexico between 2005 and 2018 at the aggregate level. While the ageing of the labour force produced modest reductions in the participation rate, changes in the educational level countervailed these effects for the period of study. In particular, the marked rise in the educational level of the population propelled the participation rate, especially among women. In addition, this paper also explores the effects of the business cycle in the labour force participation rate using a semi-parametric estimation that controls for changes in the profile of the population. The results of this analysis show no conclusive evidence that the participation of females is counter-cyclical, unlike previous studies for Mexico. Instead, our findings suggest that the participation rate is moderately pro-cyclical for males and females, albeit with a stronger effect on the labour participation of males.

Keywords: labour force; business cycle (search for similar items in EconPapers)
JEL-codes: J21 E32 (search for similar items in EconPapers)
Date: 2019-03
New Economics Papers: this item is included in nep-lma and nep-mac
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