Participation

1
Participation
To start with!

• Employed, Unemployed, Out of labor market
• Population lt15,65gt
• Labor forceEU
• participation rate(EU)/(EUO)
• employment rate(E)/(EUO)
• unemployment rate(U)/(EU)

2
Basic terminology
References SIALS
To start with!

• Fast changing age structure of population
  (Mexico, South America, ) will contribute to the
  observed pattern of aggregate participation
  rates.
• The differences are hidden if MEN and WOMEN are
  aggregated

3
L...Labor l ...leisure

• Conditions (1) and (2) identify internal solution
• L(w,I0) is then supply function