Abstract
Current Population Survey data from 1976 to 2016 are used to answer the question of whether Millennials are less likely to participate in the labor force compared to previous generations. A multinomial logit analysis finds Millennials are less likely to participate in the Labor Force than Baby Boomers. This is due to a fundamental change in preferences within the Millennial cohort. Millennials have a “weak” sense of entitlement and a desire to seek the highest paycheck. These differences lead to an inflated reservation wage. With the safety net from their parents, many Millennials find the costs of job searching too high and decide to not enter the labor force.