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Labour Force Participation and the Business Cycle in Mexico

Author

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  • Puigvert Jonathan
  • Juárez-Torres Miriam

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.

Suggested Citation

  • Puigvert Jonathan & Juárez-Torres Miriam, 2019. "Labour Force Participation and the Business Cycle in Mexico," Working Papers 2019-04, Banco de México.
    • Handle: RePEc:bdm:wpaper:2019-04
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    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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