Question

In: Economics

Consider the increase in married women’s labor force participation after WWII. Which age cohorts participated in...

Consider the increase in married women’s labor force participation after WWII. Which age cohorts participated in significantly higher percentages in the 1950-1970s and for what reason? (5 points) Which age cohorts participated in greater percentages since the 1970s and why? (5 points)

Solutions

Expert Solution

Higher Percentage in 1950-1970 and reason why?

Women born during the 1926–45 period have dominated the history of labor force participation change during the 1950–98 period. From 1960 to 1970, when women were in age groups 16 to 24 and 25 to 34, they had the largest increase (8.5 percentage points for 16- to 24-year-olds and 9.0 percentage points for 25- to 34-year-olds) in labor force participation rates of all age groups. During the next 10 years, from 1970 to 1980, the same cohorts of women had the largest changes in labor force participation of any age groups (20.5 percentage points for those aged 25 to 34 and 14.4 percentage points for those aged 35 to 44).

Women in the agr group of 45 -54 led to the major contribution in the labor force in the post war period. Participation rates for this cohort rose from just 30% in 1946 to 50% in 1960. On the other hand, rates rose more slowly for the 35-44 year old and hardly increased at all for 25-34 year old. These were the post-war baby-boom years and most of the married women remained outside the labor force because of their child and family responsibilities. The different timing of labor force increases by age mirrored public attittudes about women working outside the house. Attitudes shifted first for older women, who generally did not have young children at home.

In the early 1960's, however, women of childbearing age began to enter the labor market in large numers. The rate of increase picked uo the mid-1960's and accelerated even more during the 1970's. A very sharp decline in the birth rate in the 1960's was a major contribution factor. At the same time, total employment was rising strongly with must of the growth occuring in services and the public sector (especially education), where large numbers of women are employed. Increasing levels of education and rapidly changing views about the home and work roles of women were also factors in the tremendous jump in womens' labor market activity during the 1960's and 1970's.

Greater percentage since 1970's and why?

In a pattern that persisted through 1970, the rates for women aged 25 to 34 were lower than those for women aged 16 to 24, because women generally left the labor force when they married or had their first child. Rates increased as women reached age 35 to 44 and rose even higher for those aged 45 to 54, as many women returned to work after bearing and rearing their children.  This pattern continued from 1980 to 1998, but increases were very modest from 1990 to 1998, compared with previous years.

The flood of 25-34 year olds into the labor market during the last 20 years changed the long standing pattern of female participation rates by age. The historical "M" shape was replaced by an inverted "U", as the dip in female particiaption that had been evident between 20-24 and 25-34 age groups almost disappeared. Also, after mid 1970's, woen 45-54 no longer had the highest rates among the three groups within the prime working-age bracket. In 1987, the rate for the 45-54 age group averaged 67%, compared to 74% for 35-44 year olds and 72% for 25-34 years olds.


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