The Lost Men

The labor force participation rate of prime-age men (25 to 54) has declined over the past few decades. No one is sure why this has happened, although many have tried to explain it. A National Bureau of Economic Research paper by Ariel J. Binder and John Bound offers an intriguing theory.

First, some context. Most of the decline in men's labor force participation has occurred among men without a college degree. To determine why this is, Binder and Bound examined a number of factors such as a decline in wages for less-educated men, the availability of disability benefits, and the rise of mass incarceration. None of these factors alone is enough to explain the decline. So the researchers suggest that the disruption of the marriage market among less-educated men is also at work. "We claim that the prospect of forming and providing for a new family constitutes an important male labor supply incentive." This incentive has disappeared among less-educated men because "fewer men are actively involved in family provision or can expect to be involved in the future. This removes a labor supply incentive."

The researchers provide data that show just how elusive marriage has become for prime age men without a college degree. This is just one set of data points from their research...

Percent of white men aged 25 to 54 with a high school diploma and no further education who are currently married, 1970 and 2015

Currently married	2015	1970
Aged 25 to 34	38%	83%
Aged 35 to 44	58	90
Aged 45 to 54	61	89

The marriage rate among white men aged 25 to 34 with no more than a high school diploma has fallen by a stunning 45 percentage points since 1970. The decline is a steep 28 to 32 percentage points for those aged 35 to 54. While marriage rates have fallen for college-educated men as well, the decline has been much more modest, say the researchers.

Without the pressure to support a family, some men simply drop out of the labor force. How do they survive? A growing share of prime age men without a college degree survive by living with their parents. Here are some stats from the study...

Percent of white men aged 25 to 54 with a high school diploma and no further education who are living with their parents, 1970 and 2015

Live with parents	2015	1970
Aged 25 to 34	25%	10%
Aged 35 to 44	13	4
Aged 45 to 54	9	3

One in four white men aged 25 to 34 with no more than a high school diploma lives with his parents, as do roughly 1 in 10 of his older counterparts. "The possibility of drawing support from one's existing family...creates a feasible labor-force exit," conclude the researchers.

Source: National Bureau of Economic Research, The Declining Labor Market Prospects of Less-Educated Men, NBER Working Paper 25577 ($5)