Suppose that a baby boom occurs between the years 2025-2030, similar to the baby boom following...
Suppose that a baby boom occurs between the years 2025-2030, similar to the baby boom following World War II. What do you expect to happen to the labor force participation rate in the year 2090-2100, holding all else constant? The labor force participation rate will
A. increase as the baby boomers will continue to work while in the influx of young workers will drive up the participation rate.
B. decrease since the baby boomers will opt for more leisure.
C. not change since every retiree will have a new worker replace them.
D. increase since the baby boomers will opt for more leisure.
Homework Answers
Labour force participation rate is the fraction of population that is engaged with the labour force. In case of baby boomers that are expected to approach their retirement age after 2090 onwards, the labour force participation rate should decline because they will not be a part of labour force once they retire. Hence option B is correct.
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States, both legally and illegally. (1)
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