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Decomposing the Change in Labour Force Indicators over Time

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  • Alexia Prskawetz
  • Barbara Zagaglia
  • Thomas Fent
  • Vegard Skirbekk

Abstract

In this paper we study changes in the size and the composition of the labour force in five OECD countries from 1983 through 2000. We apply a recent decomposition method to quantify the components of the change over time in the crude labour force rate and the mean age of the labour force. Our results show that the change in the crude labour force rate was dominated by the change in age-specific labour force participation rates. For the mean age of the labour force we find that for males the change in the age composition of the population predominately explains the overall change while the results for females are less clear-cut.

Suggested Citation

  • Alexia Prskawetz & Barbara Zagaglia & Thomas Fent & Vegard Skirbekk, 2009. "Decomposing the Change in Labour Force Indicators over Time," European Demographic Research Papers 0401, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
    • Handle: RePEc:vid:eudgrp:0401
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    References listed on IDEAS

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    1. James W. Vaupel & Vladimir Canudas-Romo, 2002. "Decomposing demographic change into direct vs. compositional components," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 7(1), pages 1-14.
    2. Richard Easterlin, 1978. "What will 1984 be like? Socioeconomic implications of recent twists in age structure," Demography, Springer;Population Association of America (PAA), vol. 15(4), pages 397-432, November.
    3. Prithwis Gupta, 1978. "A general method of decomposing a difference between two rates into several components," Demography, Springer;Population Association of America (PAA), vol. 15(1), pages 99-112, February.
    4. Courtney Coile & Jonathan Gruber, 2000. "Social Security and Retirement," NBER Working Papers 7830, National Bureau of Economic Research, Inc.
    5. Robert Shimer, 2001. "The Impact of Young Workers on the Aggregate Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(3), pages 969-1007.
    6. Richard Disney, 1996. "Can We Afford to Grow Older?," MIT Press Books, The MIT Press, edition 1, volume 1, number 026204157x, April.
    7. Jonathan Gruber & David A. Wise, 1999. "Social Security and Retirement around the World," NBER Books, National Bureau of Economic Research, Inc, number grub99-1.
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    Cited by:

    1. Henseke, Golo & Tivig, Thusnelda, 2013. "Alterung in Berufen: Der Beitrag ökonomischer Einflüsse," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80001, Verein für Socialpolitik / German Economic Association.
    2. Elke Loichinger & Alexia Prskawetz, 2017. "Changes in economic activity: The role of age and education," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 36(40), pages 1185-1208.
    3. Henseke, Golo & Strohner, Benjamin & Tivig, Thusnelda, 2013. "Methodenreport Work & Age: Berufliche Alterungstrends und Fachkräfteengpässe," Thuenen-Series of Applied Economic Theory 130, University of Rostock, Institute of Economics.

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    More about this item

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • Z0 - Other Special Topics - - General

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