On This PageJanuary 2011, No. 282

How Do Sudden Large Losses in Wealth Affect Labor Force Participation?
Last Updated: 12/01/10

The authors assess whether the sudden large losses in household wealth due to recent declines in stock and home values have significantly affected the U.S. labor market. They find that the overall labor force participation rate would be 0.7 percentage points lower were it not for the declines in the values of stocks and houses over the 2006–10 period.