Martin Wolf, writing the Financial Times, reported that the US labor market has a unique problem among the advanced economies. It has a shrinking percentage of prime aged men and women in the labor market. Wolf found a pretty good explanation for the decline in the participation rate of women; the high cost of child care in the US may decrease the incentive to seek employment. The decline in the participation rate for men is not easily explained. He concludes with the following paragraph:
Finally, does the declining participation of prime-aged adults
matter? Yes, it must: it matters if many believe they cannot earn enough
in the labour market to support a family; and it matters if mothers
lose their connection to the labour market. The relentless decline in
the proportion of prime-aged US adults in the labour market indicates a
significant dysfunction. It deserves attention and analysis. But it also
merits action.
No comments:
Post a Comment