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The University of Southampton
EconomicsPart of Economic, Social and Political Science

Labour Force Composition and Aggregate Fluctations (A. Mennuni)

Paper number: 1302

Title: Labor Force Composition and Aggregate Fluctuations

Author: Alessandro Mennuni


Labor composition by gender, age, and education has undergone dramatic changes over the last forty years in the United States. Furthermore, the volatility of total market hours differs systematically between genders, age groups, and education groups. I develop a large-scale business cycle model, along with a new computation method, and show that these changes in labor composition account for up to 30% of the observed changes in aggregate volatiliy over this period of time.

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