Labour force participation in the euro area: a cohort based analysis

We use a cohort based model to analyse determinants of labour force participation fordisaggregated groups of workers in the euro area and the five largest euro areacountries. The model captures age and cohort effects as indicators of (unobserved)determinants of participation behaviour. We use these effects and observeddeterminants to construct trends and projections of labour supply. Our results suggestthat age and cohort effects can account for a substantial part of the recent increase inparticipation. Cohort effects are particularly relevant for women with those born inthe late 1960s and early 1970s more likely to participate...