In: Economics
Since 1970, the labor force participation rate for women has increased from 43.3% in 1970 to 56.9% in 2018. During the same period, real GDP increased from $4.715 trillion to $17.286 trillion. Are these two events related? Explain.
MUST BE AT LEAST 250 WORD COUNT
Yes, these two events are related. As the economy of the US has grown rapidly over the given period, it creates opportunities along the way. This means that there are more and more job openings but there is only a limited stock of qualified males for it. The employers would ultimately have to turn to females as it is in their economic interest to do so and more women are able to find jobs. As women find it easier to find suitable opportunities, they become more comfortable in joining the job market and a large share of women who were previously out of the labor force now become a part of it. Thus, there is a prosperous cycle started by rapid economic growth.
It is also important to appreciate the social aspect of growth. It is often noticed that women labor force participation is low not because lack the necessary skills but because there are several obligation created by the society through its conditioning. It is seen that economic growth often makes the outlook of the society ore progressive as people understand that it is improves standards of living that ultimately give them the most satisfaction. Highly developed countries like Us or Euro countries are certainly more socially progressive than poorer countries like Brazil or India. This change in mindset, following periods of economic growth, also acts as major boost for the women and allows them to explore the labor market.