What is meant by the “participation rate” and what factors may influence it?

Question

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Answer 1

The labour force in Australia is defined as all those persons over the age of 15 (the people of working age population) who are employed plus all of those who are actively looking for work. The percentage of the working age population in the labour force is defined as the participation rate. The factors affecting participation rates are varied and many. I have included an example in the follwing:

A study was undertaken to examine the influence of various demographic, educational, and economic factors on the labor force participation rates in Ghana. 1960 and 1970 census data were used for the study. Female participation rates in Ghana were seen to be high relative to many countries, although they are considerably lower than male rates. Female participation rates are only moderately affected by age with peak activity occurring at rather advanced ages. Women in the northern areas and in urban areas have lower participation rates. In fact, due to the inhibiting effect of school attendance, participation rates for both sexes were lower in urban areas. Participation rates were positively associated with migration rates for males and negatively associated for females. Childcare was found not to be incompatible with female economic activity. Female rates increased between 1960 and 1970.