Wednesday, August 14, 2019

Why Aren't More Men Working?

Fewer men of prime working age are in the labor force. Among men aged 25 to 54, the labor force participation rate fell from 96 percent in 1969 to 89 percent in 2018. Or, to put it another way, more than 1 in 10 men of prime working age are not in the labor force today, up from 1 in 25 in 1969. What accounts for this increase? A BLS examination of the characteristics of nonworking men deepens the mystery—and may reveal the answer.

Using data from the 1979 and 1997 National Longitudinal Surveys of Youth, BLS economist Donna Rothstein compares the characteristics of nonworking men aged 30 to 36 from two cohorts—those born from 1960 through 1964 and those born from 1980 through 1984. She defines "nonworking" as men who had not worked for at least one year prior to the NLSY interview. Her analysis reveals that, if anything, the younger cohort of nonworking men was less disadvantaged than the older cohort...

  • The percentage of nonworkers with a health condition that limited their ability to work fell from 51 percent in the older cohort to 41 percent in the younger cohort.  
  • The percentage of nonworkers who were interviewed in prison (making it impossible to work) fell from 24 percent in the older cohort to 16 percent in the younger cohort.
  • The percentage of nonworkers with scores in the bottom 25th percentile of the Armed Forces Qualification Test (administered by the NLSY survey) was 64 percent in the older cohort and a smaller 53 percent in the younger cohort. 

Being less disadvantaged than the older cohort, men in the younger cohort should have been more likely to work. But Rothstein's analysis uncovers a difference that might explain their lower labor force participation. Nonworking men in the  younger cohort were much less likely than those in the older cohort to have ever married: 70 percent of the nonworkers in the younger cohort had never married versus 52 percent in the older cohort. According to a recent NBER study, this fact may be the key. The NBER study theorizes that the decline in marriage is the reason men of prime working age are less likely to be in the labor force. Without the pressure to support a family, men are less likely to work.

Source: Bureau of Labor Statistics, Men Who Do Not Work During Their Prime Years: Who do the National Longitudinal Surveys of Youth Data Reveal?

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