I want to check that I am using the correct definition for labor force participation rates by gender or income group. For instance, if we have the following:

1- Working age population of 800 people, with 400 men and 400 women 2- Total workforce of 500 individuals, with 300 men and 200 women.

Would the LFP rate for women be 200 in the workforce/800 total working age population?

Or 200 women in the workforce/ 400 working age women?

I have seen both used, but I assume only the second denominator is correct?

  • 1
    $\begingroup$ The second choice. You want the number of the group of interest participating divided by the total number of the group of interest $\endgroup$
    – Henry
    Mar 9 '21 at 17:24
  • $\begingroup$ Thanks for the verification! $\endgroup$
    – maldini425
    Mar 9 '21 at 17:32

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