Suppose that country A has total labour force of 10000000 pe

Suppose that country A has total labour force of 10,000,000 people, but 5% of these people are just seeking jobs (those just graduate from college for instance). Another 2,000,000 people who are over 16 years old and has ability to work but reluctant to work.

Calculate labour force participation rate (LFPR) for country A. (5 marks)

In empirical research, lots of researchers found that female participation rates increase dramatically from 1950 to 2011. Please indicate five factors that contribute to this trend, and briefly explain each factor. (10 marks)

Solution

(1) Labor force participation rate

Total working-age population = Total labor force + Working-age persons unwilling to work

= 10,000,000 + 2,000,000

= 12,000,000

Labor force participation rate = Total labor force / Total working-age population  

= 10,000,000 / 12,000,000

= 0.8333

= 83.33%

NOTE: As per Chegg answering guideline, first question is answered.