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Recipients of DI tend to exit the labour force permanently and do no return as cyclical conditions improve.
It has bigger structural issues now, but not 9.5% unemployment's worth.**Do note that this would be higher but for large exits from the labour force, and it's probably safe to assume that the structurally unemployed are more likely than the cyclically unemployed to exit the labour force.
By contrast, self-employed entrepreneurs (−3.4 and −2.2 percentage points for males and females, respectively) and freelancers (−3.7 and −3.0 percentage points for males and females, respectively) are less likely to exit the labour force.
While in simple jobs without technical change, workers may intend to exit the labour force between 60 and 64, a high probability of technical change leads these workers to advance their retirement intentions to less than 60 years old.
Another finding of interest is that the presence of children in the household provides an incentive for unemployed females, and a disincentive for unemployed males, to exit the labour force.
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To date, work has largely focused on the health of those who exited the labour force early.
This rise would likely be much higher if so many workers had not exited the labour force over the past decade.
Most of the effect of extended benefits on prolonging unemployment, it finds, comes through preventing people from exiting the labour force.
Wages and prices did not fall by much in recent years because jobless workers exited the labour force for good a result of over-generous welfare benefits and obsolete skills.
Plots (a) and (c) show the predicted probabilities of exiting the labour force in the next 12 months for unemployed males and females.
Although a negative effect on the probability of exiting the labour force is found for employed males, a positive effect is observed for females.
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