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Factors Affecting the Labor Force Participation of People Ages 25 to 54

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  • Congressional Budget Office

Abstract

Since 1990, the rate of labor force participation for people ages 25 to 54 has dropped from 84 percent to 81 percent. Most of that change has been related to demographic factors, economic conditions, and the government’s fiscal policies. In this analysis, CBO examines how seven demographic factors relate to participation in the labor force and how economic conditions and fiscal policies are expected to affect labor force participation over the next decade. CBO also examines what keeps people from participating in the labor force.

Suggested Citation

  • Congressional Budget Office, 2018. "Factors Affecting the Labor Force Participation of People Ages 25 to 54," Reports 53452, Congressional Budget Office.
    • Handle: RePEc:cbo:report:53452
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    File URL: https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/53452-lfpr.pdf
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    Cited by:

    1. Heim, Bradley & Lurie, Ithai & Mullen, Kathleen J. & Simon, Kosali, 2021. "How Much Do Outside Options Matter? The Effect of Subsidized Health Insurance on Social Security Disability Insurance Benefit Receipt," Journal of Health Economics, Elsevier, vol. 76(C).
    2. Raven Molloy & Christopher L. Smith & Abigail Wozniak, 2024. "Changing Stability in U.S. Employment Relationships: A Tale of Two Tails," Journal of Human Resources, University of Wisconsin Press, vol. 59(1), pages 35-69.
    3. Elaine Maag & Nikhita Airi & Sophie Collyer, 2023. "Implications of Alternative Designs of the Child Tax Credit," The ANNALS of the American Academy of Political and Social Science, , vol. 710(1), pages 209-228, November.
    4. Ana-Maria Zamfir & Anamaria Năstasă & Anamaria Beatrice Aldea & Raluca Mihaela Molea, 2021. "Factors Shaping Labour Market Participation," Postmodern Openings, Editura Lumen, Department of Economics, vol. 12(1), pages 91-101, March.
    5. Congressional Budget Office, 2018. "CBO’s Projection of Labor Force Participation Rates: Working Paper 2018-04," Working Papers 53616, Congressional Budget Office.

    More about this item

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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