| Sumario: | A demographic flow analysis traces the impact of the last recession on different labor groups by measuring the relative effects of labor-free behavior and labor market opportunities. The study covers the period from January 1981 to January 1984 and examines monthly flows according to age, sex, and race. During the recession, the groups most adversely affected were male, white, and prime-aged or older workers. The unemployment rate, however, may understate the ill effects of the recession on males and teenagers. Although demand may have been higher for female workers, evidence suggests that women are no more likely than men to become “added workers.” Differences in labor “supply” and demand appear to have determined the different participation rates of white and nonwhite workers and of teens and others. Equations used in the analysis and suggestions for further research are included.
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