Reduced Labor Force Participation Research Articles

Labor force effects of Medicaid and Marketplace expansions: Variation by gender, parental status, and household structure

AbstractWe revisit the Affordable Care Act (ACA)'s Medicaid expansion's labor market effects and build upon it by estimating effects of subsidized Marketplace insurance. Using American Community Survey data, we jointly model the effects of Medicaid and Marketplace expansion on labor force outcomes using simulated eligibility measures. Throughout our analysis, we focus on heterogeneity by gender, parental status, and single versus two‐headed households. Consequently, this is the first paper presenting labor outcomes of the ACA among women with children, an important group, which may be particularly responsive to increased flexibility in meeting income, childcare, and insurance needs. Even among women, we find little evidence that Medicaid eligibility reduced labor force participation. Any significant reductions among women are small in magnitude and not well corroborated by placebo tests. Alternatively, women with children gaining Marketplace eligibility had statistically significant reductions in labor force participation, reductions in hours, and increases in part‐time work.

THE ECONOMIC IMPACT OF THE OPIOID EPIDEMIC

There is strong evidence that the opioid epidemic has reduced labor force participation in the United States. While use of prescription opioids aimed at pain management for some individuals may enhance their ability to work, the widespread misuse of opioids has resulted in an epidemic of opioid use disorders (OUD), labor supply disruptions, and unprecedented deaths. Opioid misuse can compromise labor supply in a variety of ways, including absenteeism, increased workplace accidents, and withdrawal from the labor force due to disability, incarceration, or death.

Unpaid eldercare and its impact on the US labor supply

Globally, the dependency ratio is rising due to increase in aging population. Individuals, especially women are challenged when choosing between participating in the labor market and providing care. Using 2011-2017 American Time Use Survey data for a subsample of individuals aged 25- 61 years, we examine the effect of frequent eldercare provision on labor force participation in the US using bivariate probit instrumental variable approach. Our findings suggest that unpaid eldercare performed frequently reduces labor force participation. Female frequent providers are likely to have lower labor force participation compared to their male counterparts. Robustness and sensitivity checks confirm these findings.

Patterns and Causes of Female Labor Force Participation: An Age–Period–Cohort Analysis for Pakistan

Female participation rates in Pakistan’s labor force are well below regional averages despite approximately 9 percent growth in the past three decades. To probe the underlying causes of the dynamics of female labor force participation in Pakistan, we use a synthetic panel constructed from nationally representative labor force surveys (1990–2017). The results indicate that the rising population share of working-age women does not account for changes in aggregate labor force participation rates. The age–period–cohort analysis demonstrates that for cohorts born since the 1900s, urban females’ age effects follow a slight M-shaped curve, representing the child-raising phase during which females reduce labor force participation. The cohort effects signal an increase in the labor force participation of cohorts born after the 1950s. This is particularly the case for married females and females with less education that traditionally have weaker attachments to the labor market due to social norms. Therefore, understanding and identifying the factors that can have an effect on the inhibiting role of social norms are central to devising policies to foster female labor force participation.

Las remesas internacionales y la participación en la fuerza laboral en Costa Rica: Explicando Resultados Contradictorios

The purpose of this article is to investigate the effects of remittances on labor force participation and labor supply decision of women in Costa Rica based on an analysis of data from the Costa Rica national survey, Encuesta de Hogares de Propositos Multiples (Household Survey for Multiple Purposes) in 2007. The labor force participation decision is analyzed with a Probit model. The determinants of total number of hours worked is investigated with the Heckman selection model. The labor force participation decision on female household heads is found to be affected by remittances and the frequency, reduce labor force participation rates as much as 20 percent. The effect of remittances on the number of hours supplied is found to be weaker. Those households, which receive no remittances or only receive remittances infrequently, supply 3.5 hours more per week. However, we fail to find that frequent remittance receiving household heads supply fewer hours. We find evidence that the number of hours supplied is affected by the frequency of remittances for the poor, but not the extremely poor.

Reproductive Burden and Its Impact on Female Labor Market Outcomes in India: Evidence from Longitudinal Analyses

We use nationally representative data from two waves of the Indian Human Development Survey to examine the role of inter-temporal changes in fertility behavior in influencing female labor market outcomes. Our multivariate regression estimates show that an increase in the number of children reduces labor force participation and earnings. We further investigated the impact of fertility changes on transitions from the labor market. The results show that women who had more than three children in both rounds of the survey had a 3.5% points higher probability of exiting from the labor market than their counterparts with two or fewer children net of other socio-demographic factors. Disaggregated analyses by caste, economic, educational status, and region show that the probability of dropping out of the labor market due to fertility changes varies by region and is greater for non-poor and primary to secondary schooling women and those from socially disadvantaged castes than poor, non-educated, and socially advantageous women.

State work–family contexts and the wage gap by gender and parenthood

AbstractObjectiveThis article examines the association between state‐level work–family resources and earnings disparities by gender and parenthood.BackgroundThe wage gap between childless men and women in the United States has narrowed, but the gap between mothers and fathers remains robust. Gendered division of labor and reduced labor force participation of women around childbirth have been raised as underlying causes. In the absence of national support, some states and migrant domestic workers have been filling the care gap, but it is unclear whether these factors are associated with the wage gap.MethodIndividual‐level data from the 2012 American Community Survey were merged with state‐level data collected for 2010. Multilevel linear regression models were used to explore variation in earnings across states, accounting for compositional differences and selection into the labor force.ResultsTemporary Disability Insurance, which enables new birth mothers to take paid leave, was robustly associated with narrower gaps between mothers and fathers. Unpaid private‐sector leave expansion and more intensive globalization of domestic work were associated with narrower gender wage gaps among parents with lower education. Provision of Head Start supplemental funding was associated with narrower wage gaps between mothers and fathers with higher education.ConclusionsAlthough mothers earned more in states with more work–family resources, the wage gap remained mostly unchanged because fathers similarly earned more in states with better work–family context.ImplicationsThe results reflect the fragmented and incomplete nature of work–family support in the United States and calls for more comprehensive intervention strategies to reduce the wage gap.

Examining the consequences of poor neonatal health on the family

AbstractWe compare the trajectories of families who have a child with poor neonatal health compared to those who do not, using administrative birth record data merged with longitudinal household survey data. We apply entropy balancing and weighting methods to enhance comparison between the two types of families. We find that children with poor neonatal health are more likely to be diagnosed with a disability and to receive Supplemental Security Income. Mothers who have children with poor neonatal health are more likely to reduce labor force participation at both the intensive and extensive margins when the child is young. Further, they are more likely to receive benefits from the Supplemental Nutrition Assistance Program and the Temporary Assistance for Needy Families program. We find no significant effects of poor neonatal health on maternal mental health or household income. Parents who have children with poor neonatal health are significantly less likely to remain married or cohabiting.

Did Substance Abuse during the Pandemic Reduce Labor Force Participation?

Did Substance Abuse during the Pandemic Reduce Labor Force Participation?

The Economic Burden of Vision Loss and Blindness in the United States

To estimate the economic burden of vision loss (VL) in the United States and by state. Analysis of secondary data sources (American Community Survey [ACS], American Time Use Survey, Bureau of Labor Statistics, Medical Expenditure Panel Survey [MEPS], National and State Health Expenditure Accounts, and National Health Interview Survey [NHIS]) using attributable fraction, regression, and other methods to estimate the incremental direct and indirect 2017 costs of VL. People with a yes response to a question asking if they are blind or have serious difficulty seeing even when wearing glasses in the ACS, MEPS, or NHIS. We estimated the direct costs of medical, nursing home (NH), and supportive services and the indirect costs of absenteeism, lost household production, reduced labor force participation, and informal care by age group, sex, and state in aggregate and per person with VL. We estimated an economic burden of VL of $134.2 billion: $98.7 billion in direct costs and $35.5 billion in indirect costs. The largest burden components were NH ($41.8 billion), other medical care services ($30.9 billion), and reduced labor force participation ($16.2 billion), all of which accounted for 66% of the total. Those with VL incurred $16 838 per year in incremental burden. Informal care was the largest burden component for people 0 to 18 years of age, reduced labor force participation was the largest burden component for people 19 to 64 years of age, and NH costs were the largest burden component for people 65 years of age or older. New York, Connecticut, Massachusetts, Rhode Island, and Vermont experienced the highest costs per person with VL. Sensitivity analyses indicate total burden may range between $76 and $218 billion depending on the assumptions used in the model. Self-reported VL imposes a substantial economic burden on the United States. Burden accrues in different ways at different ages, leading to state differences in the composition of per-person costs based on the age composition of the population with VL. Information on state variation can help local decision makers target resources better to address the burden of VL.

Reproductive burden and its impact on female labor market outcomes in India: Evidence from longitudinal analyses

We use nationally representative data from two waves of the Indian Human Development Survey to provide causal evidence on the role of inter-temporal changes in fertility behaviour in influencing female labor market outcomes. Our multivariate regression estimates show that an increase in the number of children reduces labor force participation and earnings. We further investigated the impact of fertility changes on transitions from the labor market. The results show that women who had more than three children in both rounds of the survey had a 3.5 percentage points higher probability of exiting from the labor market. Disaggregated analyses by caste, economic status and region show regional heterogeneity, and the probability of dropping-out of the labor market due to fertility changes is greater for non-poor women and those from socially disadvantaged castes.

COVID-19 and Education: A Survey of the Research

This Commentary reviews evidence on three areas of concern related to the COVID-19 pandemic and education in the United States for which research currently exists. First, the evidence suggests that the spread of the COVID-19 virus at K–12 schools has been low, although it may have spread through colleges at a higher rate. Second, while anecdotal evidence suggests that school closures have reduced labor force participation, the research evidence thus far does not find much support for this situation. Third, the limited research evidence does, however, suggest the COVID-19 pandemic is negatively affecting students’ academic performance.

A gendered pandemic: Childcare, homeschooling, and parents' employment during COVID‐19

AbstractThe COVID‐19 pandemic has dramatically affected employment, particularly for mothers. Many believe that the loss of childcare and homeschooling requirements are key contributors to this trend, but previous work has been unable to test these hypotheses due to data limitations. This study uses novel data from 989 partnered, US parents to empirically examine whether the loss of childcare and new homeschooling demands are associated with employment outcomes early in the pandemic. We also consider whether the division of childcare prior to the pandemic is associated with parents' employment. For parents with young children, the loss of full‐time childcare was associated with an increased risk of unemployment for mothers but not fathers. Yet, father involvement in childcare substantially buffered against negative employment outcomes for mothers of young children. For parents with school‐age children, participation in homeschooling was associated with adverse employment outcomes for mothers but not fathers. Overall, this study provides empirical support for the current discourse on gender differences in employment during the pandemic and also highlights the role fathers can play in buffering against reduced labor force participation among mothers.

Trade Policy as an Exogenous Shock: Focusing on the Specifics

This paper proposes a novel strategy for identifying the effects of import competition on economic outcomes that avoids standard concerns related to the endogeneity of trade policy and provides a consistent measure of exposure to trade over time. Conditioning on the level of import tariffs, our approach exploits cross-industry differences in the relative importance of specific rather than ad valorem tariffs. As they are expressed in per unit terms rather than as a share of value, the effective protection provided by a given specific tariff varies with price levels. Using digitized tariff line data between 1900 and 1940, we relate inflation-driven changes in trade protection to changes in imports and labor market outcomes in the full count U.S. census. We show that our measure predicts import growth at both the industry and county level. Using our measure as an instrument, we show that import competition reduces labor force participation in traded sectors during this period. Labor market effects are widespread but fall most heavily on those with little experience or fewer outside labor market options: the young, seniors, and those in rural areas.

Are mothers more likely than fathers to lose their jobs?

The motherhood wage penalty is often cited as a contributor towards the gender earnings gap. A potential explanation involves women’s reduced labor force participation and paid work hours after having children. Yet, the literature says little about whether mothers’ labor supply reductions are entirely voluntary. This study utilizes two US longitudinal panels to measure children’s impact on parent job loss. Mothers are significantly more likely than fathers to involuntarily lose their jobs. The gap is substantial, persists over time, is robust to a variety of model specifications, and exists among a host of demographic sub-samples. While a definite mechanism is elusive, the study posits that productivity decline may disproportionately lead to mothers losing their jobs more so than fathers.

Economic burden of migraine in Latvia and Lithuania: direct and indirect costs

BackgroundMigraine is a primary headache disorder which affects all aspects of life. The financial burden of migraine imposed on the society might be substantial. This study aims at estimating the economic cost of migraine in Latvia and Lithuania, including both direct and indirect costs. Direct costs encompass the costs of migraine-related health care resource utilization. Indirect costs are related to productivity loss, the potential or expected earnings lost due to migraine.MethodsDirect cost is assessed by using the prevalence method, a widely used cost-of-illness approach. The prevalence rate of migraine and the migraine-related health care resource utilization are proxied from the literature, whereas unit cost of medical services and procedures are retrieved from national databases and providers. For estimating the indirect cost of migraine, we follow the human capital approach. We quantify three components of indirect costs: reduced labour force participation, absence from work and reduced productivity while at work. The number of unemployed migraineurs, days missed from work and days lost due to impairment while at work are drawn from the literature. Unemployment rate and average income in Latvia and Lithuania are then inserted to assess indirect costs.ResultsWe find that the mean per-person total cost of migraine is €801 annually in Latvia, and €721 in Lithuania. In both countries around 30% of total cost is direct cost; cost related to a wide array of migraine-related medical services and interventions. The total cost of migraine is €112.26 million in Latvia, corresponding to 0.42% of Latvia’s GDP. The total cost of migraine is €149.62 million in Lithuania, corresponding to 0.35% of Lithuania’s GDP. In both countries two thirds of total cost is related to lost workdays due to absenteeism and presenteeism.ConclusionsThe financial burden of migraine imposed on the society is substantial in Latvia and Lithuania. Improvements in care for patients with migraine, such as easier access to structured headache assessment services, wider availability of various procedures and preventive medications would significantly increase direct costs. Nevertheless, this cost increase might be far outweighed by lower migraine-related productivity loss, especially as the prevalence of migraine is the highest in the most productive years of life.

The Effect of Pension Growth on the Labor Force Participation of Pensioners in Russia

This paper examines the impact of the 34% increase in pensions in Russia at the end of 2009 and the beginning of 2010 on the labor market participation of pensioners. Several particular features of the pension system in Russia allow us to estimate the net effect of income from such a reform. For evaluation, we used a method combining difference-in-difference and regression discontinuity methods. The results showed that real pension growth by a third reduced labor force participation rate by 6–7.1% for men and by 6–6.4% for women. The heterogeneity of the impact of this reform was also investigated. Estimates showed that the effect was lower for more educated people or those living in villages and was completely absent among those who rated their health as poor or very bad.

The Economic Burden of Elevated Blood Glucose Levels in 2017: Diagnosed and Undiagnosed Diabetes, Gestational Diabetes Mellitus, and Prediabetes.

OBJECTIVEThis study was conducted to update national estimates of the economic burden of undiagnosed diabetes, prediabetes, and gestational diabetes mellitus (GDM) in the United States for year 2017 and provide state-level estimates. Combined with published estimates for diagnosed diabetes, these updated statistics provide a detailed picture of the economic costs associated with elevated blood glucose levels.RESEARCH DESIGN AND METHODSThis study estimated medical expenditures exceeding levels occurring in the absence of diabetes or prediabetes and the indirect economic burden associated with reduced labor force participation and productivity. Data sources analyzed included Optum medical claims for ∼5.8 million commercially insured patients continuously enrolled from 2013 to 2015, Medicare Standard Analytical Files containing medical claims for ∼2.8 million Medicare patients in 2014, and the 2014 Nationwide Inpatient Sample containing ∼7.1 million discharge records. Other data sources were the U.S. Census Bureau, Centers for Disease Control and Prevention, and Centers for Medicare & Medicaid Services.RESULTSThe economic burden associated with diagnosed diabetes (all ages), undiagnosed diabetes and prediabetes (adults), and GDM (mothers and newborns) reached nearly $404 billion in 2017, consisting of $327.2 billion for diagnosed diabetes, $31.7 billion for undiagnosed diabetes, $43.4 billion for prediabetes, and nearly $1.6 billion for GDM. Combined, this amounted to an economic burden of $1,240 for each American in 2017. Annual burden per case averaged $13,240 for diagnosed diabetes, $5,800 for GDM, $4,250 for undiagnosed diabetes, and $500 for prediabetes.CONCLUSIONSUpdated statistics underscore the importance of reducing the burden of prediabetes and diabetes through better detection, prevention, and treatment.

Pediatric chronic pain and caregiver burden in a national survey.

Background and aims Caring for children with chronic pain incurs burdens of cost and time for families. We aimed to describe variation in caregiver burden among parents of adolescents with chronic pain who responded to a nationally-representative survey. Our secondary aim was to identify child and parent characteristics associated with increased caregiver burden. Methods We used de-identified, publicly-available data from the 2016 National Survey of Children's Health (NSCH), designed to be representative of non-institutionalized children in the United States. We analyzed data for households where an adolescent age 12-17 years old was reported by a parent to have chronic pain. Outcomes included the parent's time spent on the child's health needs, reduced labor force participation, and out-of-pocket medical costs. Results Data on 1,711 adolescents were analyzed. For adolescents with chronic pain, 15% of parents reported spending at least 1 h/week on their child's health care, 14% reported cutting back on paid work, and 36% reported spending ≥$500 on their child's health care in the past 12 months. Adolescents' general health status and extent of specialized health care needs predicted increased caregiver burden across the three measures. Conversely, no consistent differences in caregiver burden were noted according to demographic or socioeconomic characteristics. Conclusions Among adolescents with chronic pain identified on a nationally-representative survey, parents frequently reported reducing work participation and incurring out-of-pocket expenses in providing health care for their child. Caregiver burdens increased with indicators of greater medical complexity (e.g. presence of comorbidities, need for specialized health care) and poorer overall adolescent health status. Implications We add a national-level perspective to studies previously performed in clinical samples addressing caregiver burden in pediatric chronic pain. Initiatives to reduce the burden of caring for children with chronic pain, described in prior work, may be especially beneficial for families with adolescents whose chronic pain is accompanied by other health problems or requires coordination of care among multiple providers.

The Cyclical Behavior of Labor Force Participation

We document that labor force participation declines in the short run following a positive technology shock. The countercyclical response of labor force participation to a technology shock contrasts with the well documented mild procyclical behavior of labor force participation in the business cycle. In a search model of the labor market that incorporates a participation choice, we show that a positive technology shock reduces labor force participation in the short run under a reasonable calibration. In the calibrated model, discount factor shocks induce a procyclical response of labor force participation. As a result, the model can generate both the countercyclical response to technology shocks and the procyclical behavior, consistent with the evidence. Our results indicate an important role of nontechnology shocks for explaining labor market fluctuations.