Labor Participation

LABOR PARTICIPATION AS A FUNCTION OF SELECTED VARIABLES: A MULTIPLE REGRESSION ANALYSIS

This research assesses the labor participation rate in the United States as a function of selected demographic factors. The labor participation rate is the proportion of the non institutionalized population aged 16 and over that is included in the civilian labor force, i.e., the proportion of that population segment that seeks paid employment (Bureau of Labor Statistics, 1994). The demographic factors selected for the assessment of the labor participation rate were as follows:

1. The proportion of African Americans in the total population. The U.S. Department of Labor publications refer to African Americans as "blacks." Thus, the term "blacks" is used in the remainder of this research report.

2. The proportion of women in the civilian labor force.

3. The proportion of four-year college graduates in the total population.

4. The proportion of high school graduates in the total population.

5. The proportion of the total population that is aged 65 or older.

6. The number of new immigrants as a proportion of the total population.

The time period selected for this assessment of labor participation was 1950 through 1994. Data were obtained on an annual basis for each year in the 45-year period.

Multivariate analysis procedures includes those techniques that focus on the structure of simultaneous relationships among three or more variables. There is a wide variety of multivari

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ticipation rate was the dependent variable, while each of the six demographic factors was an independent variable. The hypothesized relationships between the dependent variable and each of the independent variables were as follows: 1. The labor participation rate will decrease as the proportion of blacks in the total population increases. This hypothesized relationship is based on the data since 1980 that indicates that the labor participation rate for blacks is lower than that of the majority white population segment (Economics and Statistics Administration, 1995). 2. The labor participation rate will increase as the proportion of women in the civilian labor force increases. This hypothesized relationship is based on the assumption that women entering the labor force will not be offset by reduced participation in the labor force by some other population segment. 3. The labor participation rate will increase as the proportion of persons with four-year college degrees in the total population increases. This hypothesized relationship is based on the data since 1980 that indicates that the labor participation rate for persons with four-year college degrees is higher than that of population segments with lower levels of form

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