ECONOMIC REPORT OF THE PRESIDENT

Figure 2-v
Prime-Age Male Labor Force Participation by Educational Attainment
Percent
100
Bachelor's or More
95
90
High School or Less
Some College
2015
85
80
75
1964 1974 1984 1994 2004 2014
Source: Bureau of Labor Statistics, Current Population Survey Annual Social and Economic
Supplement; CEA calculations.
automation, and globalization in the U.S. economy and, possibly, also an
increase in the wage-setting power of firms (CEA 2016d).
Institutional factors also appear to be important—and may help
explain some of the differences in the U.S. experience both over time
and compared with other countries. For example, the United States
spends only 0.1 percent of GDP on “active labor market policies” such
as job-search assistance and job training that help keep unemployed
workers connected to the labor force. This is less than nearly every other
OECD country and much less than the OECD average of 0.6 percent
of GDP. The rapid rise in incarceration may have also played a role,
disproportionately affecting low-skilled men and men of color. Although
incarcerated men are not counted in the labor force, formerly incarcerated
men are in the labor force and they are more likely to experience
joblessness after they are released from prison and, in many states, are
legally barred from a large number of jobs. For example, according to
the American Bar Association, over 1,000 mandatory exclusions bar
individuals with records of misdemeanors from professions requiring
licenses and nearly 3,000 exclusions barring those with felony records
(American Bar Association 2016).
A number of policies proposed by the Administration would help
to boost prime-age male labor force participation. These include, but are
not limited to, creating new job opportunities for less-educated prime-
The Year in Review and the Years Ahead | 83