Work

What drives labor force participation rate variability? The case of West Virginia

Year: 2024

Type: article

Abstract: This study examines the dynamics of labor force participation rates across counties in West Virginia to better understand local labor market integration and the factors influencing fluctuations in participation. Drawing on county-level data from January 1990 to July 2020, the research employs a dynamic factor model to decompose labor force participation rates into latent factors at the state, metropolitan/non-metropolitan, and county levels. The findings reveal a general lack of labor market integration across West Virginia, highlighting potential opportunities for growth through enhanced integration. Further analysis using panel data models identifies key determinants of labor force participation, including personal income, education, infrastructure, and the prominence of industries such as agriculture and natural gas. The results underscore the necessity for targeted county-level policies to bolster employment and promote economic expansion within the state.

Source: Economic Modelling

DOI: 10.1016/j.econmod.2024.106861

Authors: Josh Beverly, Shamar L. Stewart, Clinton L. Neill

Institutions: Hamline University, Virginia Tech, Cornell University

Language: English

Topic: Regional Economic Trends and Sectoral Structure

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,140