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Ananth Seshadri

This project explores the causes behind the recent decline in the Labor Force Participation (LFP) rate. The analysis will examine the evolution of the LFP rate for different demographic groups to gauge the effect of demographic changes. An integral part of the project is an investigation of the flows of workers into and out of the labor force to determine whether the LFP rate has been declining because more workers are leaving or because fewer workers are entering the labor market. The project will also study the evolution of wages to see whether the decline in the LFP rate is accompanied with a rising or declining wage, which is indicative of the relative importance of demand vs supply factors.

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