Foroni, Claudia; Furlanetto, Francesco; Lepetit, Antoine - Norges Bank - 2015
We propose a new VAR identfication scheme that enables us to disentangle labor supply shocks from wage bargaining … endogenous labor force participation. According to our analysis on US data over the period 1985-2014, labor supply shocks and … that labor supply shocks are the main drivers of the participation rate and account for about half of its decline in the …