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Chicago Fed Letter, No. 234, January 2007
Explaining the Decline in Teen Labor Force Participation
The authors provide an overview of the decline in teen labor force participation (LFP). After briefly summarizing the facts, they discuss whether the large recent drop in participation is a temporary product of a labor market that is weaker than the unemployment rate would suggest, or a more permanent drop driven by the increased attractiveness of study, changes in college financial aid, or something else.


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