Question

suppose that a baby boom occurs between the years 2025 - 2030, similar to the baby boom following world war ii. what do you expect to happen to the labor force participation rate in the year 2090 - 2100, holding all else constant? the labor force participation rate will increase as the baby boomers will continue to work while in the influx of young workers will drive up the participation rate. decrease since the baby boomers will opt for more leisure. not change since every retiree will have a new worker replace them. increase since the baby boomers will opt for more leisure.

Explanation:

Labor force participation rate is the proportion of the working - age population that is either employed or actively seeking employment. Baby boomers (born 2025 - 2030) will be around 60 - 75 years old in 2090 - 2100. As people age, they tend to retire (opt for more leisure), which means they leave the labor force. If a significant portion of the population (the baby boomers) retires (assuming no other major changes in the labor market like a huge influx of new, non - baby - boomer workers), the labor force participation rate will decrease.

Answer:

decrease since the baby boomers will opt for more leisure.