##ter than in the past, which means that price inflation is likely to be less informative regarding labor market tightness than it was previously. 3 it therefore seems particularly valuable to look beyond inflation and headline unemployment to assess the strength of the labor market. even when aggregate economic statistics look strong, studying geographic areas and demographic groups that are not faring as well can point to ways of further improving the economy ’ s performance. the federal reserve is also keenly interested in disparities in employment, labor force participation, income, and wealth because they may have implications for the growth capacity of the economy. when we consider appropriate monetary policy, we need to have a good sense of how fast the economy can grow without fueling excessive price inflation. at a time when the retirement of the baby - boom generation looks likely to be something of a drag on the growth of the labor force, it is especially important to consider whether relatively low levels of employment and labor force participation for some prime working - age groups represent slack that, if successfully tapped, could increase the labor force and boost economic activity. more broadly, when a person who was previously unemployed or discouraged secures a job, not only does it boost the economy, but that person also may gain a greater sense of economic security, self - sufficiency, and self - worth and be better able to invest in their family ’ s future. with a richer understanding of economic or social barriers that inhibit labor market success and prosperity for some groups, we may better grasp how for more on the phillips curve and its ability to provide information on labor - market slack, see brainard ( 2015 ), blanchard ( 2016 ), and kiley ( 2015 ). - 3much these individuals can be helped by broad economic expansion and how much targeted intervention is required through other policy means. there is also an important connection between the economy ’ s potential growth rate and equality of opportunity. large disparities in opportunity based on race, ethnicity, gender, or geography mean that the enterprise, exertion, and investments of households and businesses from different groups are not rewarded commensurately. to the extent that disparities in income and wealth across race, ethnicity, gender, or geography reflect such disparities in opportunity, families and small businesses from the disadvantaged groups will then underinvest in education or business endeavors, and potential growth will fall short of the levels it might otherwise attain. 4 aside from reducing the long - run productive potential of the

economic mobility across demographic characteristics. the investing in america ’ s workforce initiative is a collaboration between the federal reserve system and academic research institutions to promote investment in workforce skills that better align with employers ’ needs. 36 all of that brings me to today ’ s conference, which i am confident will make an important contribution to this mission. i am heartened to see so many researchers and further information on these surveys are found on the board ’ s website ; see the surveys of consumer finances, https : / / www. federalreserve. gov / econres / scfindex. htm ; the survey of household economics and decisionmaking, https : / / www. federalreserve. gov / consumerscommunities / shed. htm ; the survey of young workers, https : / / www. federalreserve. gov / econresdata / 2016 - survey - young - workers - executivesummary. htm ; and the survey of enterprising and informal work activities, https : / / www. federalreserve. gov / consumerscommunities / files / eiwa _ chartbook _ 2016. pdf. for information about the opportunity and inclusive growth institute, see https : / / www. minneapolisfed. org / institute, for information about the economic growth and mobility project, see https : / / www. philadelphiafed. org / egmp, and for information about the america ’ s workforce initiative, see https : / / www. investinwork. org. - 15 practitioners from a variety of backgrounds focused on these important issues. this conference is part of our efforts to hear from experts with diverse backgrounds and perspectives to better understand the nature and implications of labor market disparities. a deeper understanding of labor market disparities is central to the mission of the federal reserve because it may help us better assess full employment, where resources may be underutilized, and the likely evolution of the labor market and overall economic activity. we look forward to hearing what you have to say about these important questions and learning what other questions are in need of attention. note : on september 27, 2017, a typo was corrected to change $ 25, 000 to $ 54, 000 in the following sentence on page 9 : " based on forthcoming scf data, for example, the average annual income for families in metro areas was about $ 54, 000 higher than for families in nonmetro areas, and the average