Still Attached? Are Social Safety Nets Working? Labor Force Participation in European Regions

July 13, 2018

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Format: Chicago

Benjamin Hilgenstock, and Zsoka Koczan. Still Attached? Are Social Safety Nets Working? Labor Force Participation in European Regions, (USA: International Monetary Fund, 2018) accessed November 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

The paper examines the evolution and drivers of labor force participation in European regions, focusing on the effects of trade and technology. As in the United States, rural regions within European countries saw more pronounced declines (or smaller increases) in participation than urban regions. Unlike in the United States, however, trade and technology, captured here using novel measures of initial exposures to routinization and offshoring, did not result in detachment from the workforce in European regions. Instead, regions with high initial exposures to routinization and offshoring experienced so-far larger increases in participation, likely driven by an added second worker effect.

Subject: Aging, Employment, Labor, Labor force participation, Population and demographics, Technology

Keywords: Automation, Cyclical condition, Dependency ratio, Effects of automation, Employment, Employment-reducing effect, Europe, Exposure to offshoring, Exposure to routinization, Global, Inactivity rate area, Labor force, Labor force participation, Offshoring distribution, Offshoring due, Supply chain integration, Technology, WP

Publication Details

Pages:

26
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2018/165
Stock No:

WPIEA2018165
ISBN:

9781484367636
ISSN:

1018-5941

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