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Labour force participation across Europe: a cohort-based analysis

Author

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  • Almut Balleer
  • Ramon Gomez-Salvador
  • Jarkko Turunen
Abstract
We use a cohort-based model to analyse the determinants of labour force participation in six European economies, focusing on age and cohort effects as factors explaining differences in participation behaviour across countries. Cohort effects are particularly relevant for women with those born in the late 1960s and early 1970s more likely to participate over the life-cycle. Our results suggest that cohort effects can be interpreted as evolving social norms or preferences towards participating in the labour market according to Fernandez (NBER working paper no. 13373, 2007 ). We find substantial variation in the estimated age and cohort effects across European countries: cohort effects can account for a substantial part of the recent increase in participation in Spain, the Netherlands and Germany, and a positive, but smaller part of in the increase in participation of the UK, Italy and France. Looking forward, positive cohort effects could help counteract the downward impact of population ageing on participation. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Almut Balleer & Ramon Gomez-Salvador & Jarkko Turunen, 2014. "Labour force participation across Europe: a cohort-based analysis," Empirical Economics, Springer, vol. 46(4), pages 1385-1415, June.
    • Handle: RePEc:spr:empeco:v:46:y:2014:i:4:p:1385-1415
    DOI: 10.1007/s00181-013-0716-3
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    8. Jamie Culling & Hayden Skilling, 2018. "How does New Zealand stack up? A comparison of labour supply across the OECD," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 81, pages 1-19, April.
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    More about this item

    Keywords

    Labour force participation; Cohort analysis; Labour market institutions; Cross-country analysis; J11; J21;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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