Abstract

ABSTRACT: In this paper the authors present the results of preliminary estimates on the effects of changes in the composition of labour forces throughout eight OECD countries during the period 1966‐1986. The analysis proceeds in two steps. First, the effect of changes in the distribution of the labour force on group unemployment is computed. Second, the impact of this effect is combined with the direct effect of changes in the distribution of participation on total unemployment rates, to calculate a hypothetical unemployment rate which corresponds to what would have occured had there been no compositional changes. The paper challenges the thesis which sustains that alterations in the age‐sex composition of the labour force have exerted an upward pressure on the aggregate unemployment rate.

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