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Labor Supply Facts since 1900
Women working more
Men working less
Women’s increase swamps men’s decrease, so
Overall Labor Force Participation rising
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Cromartie, Stella “Labor force status of families: a visual essay” Monthly Labor Review 130 (July-August, 2007): 35-41.
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Cromartie, Stella “Labor force status of families: a visual essay” Monthly Labor Review 130 (July-August, 2007): 35-41.
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Cohany and Sok, “Trends in labor force participation of mothers with children and infants” Monthly Labor Review 130 (February 2007):9-16
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Cromartie, Stella “Labor force status of families: a visual essay” Monthly Labor Review 130 (July-August, 2007): 35-41.
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Cromartie, Stella “Labor force status of families: a visual essay” Monthly Labor Review 130 (July-August, 2007): 35-41.
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Bureau of Labor Statistics. “Variations in Time Use at Stages of the Life Cycle.” Monthly Labor Review 128 (September 2005): 38-45.
Big decrease in labor force participation for older Big decrease in labor force participation for older populationpopulation
Social Security kick in
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Kirkland, Katie. “On the Decline in Average Weekly Hours Worked.” Monthly Labor Review 120 (July 2000): 26-31.
Rising for manufacturing, falling elsewhere, Rising for manufacturing, falling elsewhere, but manufacturing share is decreasingbut manufacturing share is decreasing
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Bureau of Labor Statistics. “Variations in Time Use at Stages of the Life Cycle.” Monthly Labor Review 128 (September 2005): 38-45.
Men Men work work longer longer hourshours
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Labor Supply Facts since 1900
Women working moreLabor force participation rising for all demographic groups
Average weeks worked risingAverage hours per week unchanged
Men working lessLabor force participation falling for oldest and youngest
groupsAverage weeks worked unchangedAverage hours per week decrease
Average male LFPR, weeks worked, and hours exceed female average, gap shrinking
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Comparison with other countries
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Costa, Dora L. “From Mill Town to Board Room: The Rise of Women’s Paid Labor.” Journal of Economic Perspectives 14 (Fall 2000): 101-122.
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Costa, Dora L. “From Mill Town to Board Room: The Rise of Women’s Paid Labor.” Journal of Economic Perspectives 14 (Fall 2000): 101-122.
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Male and Female Labor Force Participation Rates, by Country, 2002
40 45 50 55 60 65 70 75 80 85 90 95
Australia
Belgium
Canada
France
Germany
Italy
Japan
Netherlands
Norway
Russia
Sweden
UK
USA
%
Men
Women
.83.70
Francine Blau, Marianne Farber and Anne Winkler. The Economics of Women, Men and Work, 5th edition Pearson Prentice Hall: 2006
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The Economist July 27, 2006
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Why have these changes occurred?Importance of exogenous versus endogenous factors
• Tastes (attitudes toward women working)
• Choices – Fertility behavior (fewer kids per woman)– Age of marriage rising– More education
• Divorce Rate (Choice or Exogenous Force?)
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Why have these changes occurred?Importance of exogenous versus endogenous factors
• Technology– Change role of stature in workplace– Changes productivity of time in the household– Improves transportation (lowers commuting costs)– Life expectancy (especially for women?)
• Need (Households need two incomes)• Wages
– Overall– Wages for women (anti-discrimination legislation)
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Births per 1000 women aged 15-44, 1920-1998
0
20
40
60
80
100
120
140
1920 1930 1940 1950 1960 1970 1980 1990 2000
Year
Rat
e
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James Smith and Michael Ward, Women’s Wages and Work in the 20th Century. 1984
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Female Labor Force Participation Rates by Median Household Income
30000
45000
60000
75000
90000
45.0 50.0 55.0 60.0 65.0 70.0
Labor Force Participation
Me
dia
n In
co
me
Female Labor Supply Does not Fall as Household Income IncreasesFemale Labor Supply Does not Fall as Household Income Increases
Is Female Labor Supply Driven by Need?Is Female Labor Supply Driven by Need?
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Source: Robert Wood Johnson Foundation, 1996. Chronic Care in America: A 21st Century Challenge.
Life expectancy at birth by gender, 1900—1990
Biggest reason for rising life expectancy is Biggest reason for rising life expectancy is increased chance of living to age 5increased chance of living to age 5
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Kinsella, Kevin and Yvonne J. Gist. 1998. Mortality and Health Economics and Statistics Administration, U.S. Bureau of the Census
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1800 1820 1840 1860 1880 1900 1920 1940 1960 1980
Ratio of Female to Male Earnings
Ratio of Female to Male Earnings, 1815 to 1987 Ratio of Female to Male Earnings, 1815 to 1987
Claudia Goldin Understanding the Gender Gap: An Economic History of American Women. 1990.
.30
.70
.60
.50
.40
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Are hours flexible?
Part time Workers as a Percent of total (1990)
Total Voluntary Involuntary
Teenagers 65% 55% 10%
Men 20+ 8.7% 5.2% 3.5%
Women 20+ 24% 19% 5%
Shack-Martinez, “Issues in Labor Supply” Federal Reserve Bulletin, 1991.
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Beers, Thomas M. “Flexible Schedules and Shift Work: Replacing the “9-5” Workday?” Monthly Labor Review 120 (June 2000): 33-40.
Are hours flexible?
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Campbell, Jim. “Multiple Jobholding in States, 2004.” Monthly Labor Review 128 (December 2005): 44-45.
Are hours flexible?
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Bureau of Labor Statistics. “Variations in Time Use at Stages of the Life Cycle.” Monthly Labor Review 128 (September 2005): 38-45.
Are hours flexible?