Thanks. If I remember correctly, there was an article in the BROOKINGS
PAPERS ON ECONOMIC ACTIVITY on this subject.

Laurent GUERBY <[email protected]> wrote:
> If you're thinking of this paper:
>
> http://econ-www.mit.edu/files/579
>
> For reference it was the only paper cited in answer to my query about
> the huge inactivity rate trend over 1948-2008 sent to more than
> 20 economists blogger. Here is what I answered at the time:
>
> <<
> After a first reading and if I did not misinterpret, the paper looks at
> 1978-1998 period with 1984 as reference of a change in legislation and
> ends up with a numerically low effect: 0.5% on unemployment measure.
> Other factors are cited (like on my blog) but not analyzed
> quantitatively.
>
> If you look at the 1948-2008 data as I did you'll notice quickly that
> 1960-1984 and 1984-2008 (to take an equal number of years on both side
> while retaining the maximum data) see the exact same increase in the
> inactive population, +3 points for the first period from 3% to 6% and
> then again +3 points from 6% to 9%, both in 24 years.
>
> I of course don't have references on legislative changes related to
> disabilities on the 1960-1984 period, but the data above confirm that
> the 1984 change is very low impact, if not null on the big picture of
> the inactive population evolution.
>
> If you know about other references on this topic, and/or if you could
> give more visibility to this data piece I'd be very grateful (as I said
> I'm not looking for a link to my blog so feel free to cite without link
> or attribution).
>>>
>
> Now if you look at the inactivity curve periods of increase in
> inactivity rate seems to correlate with wars: 1965-1975 = Vietnam,
> 1990-1993 = Gulf, but the latest increase starts in 1999 and Iraq is
> 2003 and seems to mark a temporary halt in the increase so contrary to
> other wars. Possible explanation: 25 year old Vietnam soldier became
> inactive in 1975 after the war, 54-25=29 and 1975+29=2004 so this
> population starts to drop out the 25-54 year old category, this might
> explain part of why the rate stays flat in 2002-2008 (WWII veterans
> dropping out might also explain some parts of the earlier curve). The
> two wars increases are around 2.5% each, so around 1.5 millions people,
> I don't know where to find the number of veterans from each war.
>
> But this does not explain why no peer-reviewed economics literature
> exist about this story, and about the life of 10.9% the prime aged male
> population :).
-- 
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.
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