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Consistent with Rothstein (2011) and Farber and Valletta (2013), UI extensions lengthen unemployment spells primarily through reducing labor force exits rather than job finding.
This law acts as an anchor on our economy by dragging down employment and reducing labor force participation.
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Experts are quoted about its severe long-term consequences: lower skills, reduced labor force attachment, and rising inequality.
There's no question that a weak economy tends to reduce labor force participation — people give up active searching for work when there are few jobs to be had.
Intermarriage is seen to reduce labor force participation for men and significantly more for women (Basu 2016).
The assembly line has the largest labor force, which should be arranged and balanced to increase production efficiency and reduce labor force requirements.
Funkhouser (1992), for Nicaragua, and Kim (2007), for Jamaica, show that remittances reduced labor force participation (see also Bussolo and Medvedev 2007).
The estimation of the displacement effects shows a negative effect of the inflows of immigrants on the local population's employment (both in terms of increased unemployment and reduced labor force participation) but not on wages.
Further studies should additionally consider the effects of comprehensive policies including compensational payment for opportunity costs of child-rearing due to reduced labor force participation, educational costs after childhood, and additional costs during early childhood and not focus only on child-rearing education costs as for the expected child-rearing expense.
Using an instrumental variable approach to account for the endogenous choice of the place of residence I find a negative effect of the inflows of immigrants on the local population's employment (both in terms of increased unemployment and reduced labor force participation) but not on wages.
Data from the non-partisan Congressional Budget Office (CBO) backs that up, with the number-crunchers' most recent report noting that "certain aspects of the Affordable Care Act will tend to reduce labor force participation".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com