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Understanding Irish Labour Force Participation

Stephen Byrne and Martin O'Brien ()

No 01/EL/16, Economic Letters from Central Bank of Ireland

Abstract: This letter explores developments in the labour force participation rate in Ireland, which has fallen from a pre-recession peak of 64 per cent to approximately 60 per cent today. Given the important role of labour supply in explaining Irish economic growth, we aim to identify the relative infl uence of structural and cyclical factors in the recent dynamics of Irish labour force participation. We find that the recent decline in female participation is entirely a response to the stage in the economic cycle given the weaker labour market, whereas the fall in male and overall participation also refl ects the infl uence of some structural factors. Accordingly a rise in the participation rate is to be expected in the near term as the economic recovery continues, but in the longer term structural factors will likely constrain further increases in participation.

Date: 2016-03
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Journal Article: Understanding Irish Labour Force Participation (2017) Downloads
Working Paper: Understanding Irish Labour Force Participation (2016) Downloads
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