Full Citation

Title: Wage Inequality and the Rise in Labor Force Exit: The Case of US Prime-Age Men

Citation Type: Working Paper

Publication Year: 2022

ISBN:

ISSN:

DOI: 10.29412/RES.WP.2022.16

NSFID:

PMCID:

PMID:

Abstract: This article offers the first empirical evidence that labor force exit rates rise when workers’ relative earnings fall. The model takes into account that a job not only provides economic security but also affirms a worker’s social status, which is tied to their relative position in the labor market. Based on the results, the decline in relative earnings for non-college prime-age men over the last four decades is estimated to have raised their labor force exit propensity by 0.49 percentage point, accounting for 44 percent of the total growth in their labor force exit rate during this period.

Url: https://papers.ssrn.com/abstract=4295553

Url: https://scholar.google.com/scholar_url?url=https://www.bostonfed.org/-/media/Documents/Workingpapers/PDF/2022/wp2216.pdf&hl=en&sa=X&d=10140174364044421938&ei=EAKRY8CwDIvymgHU24bYBw&scisig=AAGBfm39WRJE1r93WtShwESOGb

User Submitted?: No

Authors: Wu, Pinghui

Series Title: Research Department Working Papers

Publication Number: 22-16

Institution: Federal Reserve Bank of Boston

Pages: 1-45

Publisher Location: Boston

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure, Poverty and Welfare

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