Question

using carefully labeled diagrams, indicate the expected impact on the labour force participation of married women by changes in each of the following factors, other things held constant:

a. An increase in the education of women

b. A more equal sharing of hoursehold responsibilities between husband and wife.

c. A reduction in the average number of children.

d. An increased tendency to have children spaced more closely together

e. An increase in the earnings of husbands.

f. Daycare paid out of general tax revenues.

g. Allowing daycare expenses to be tax deductables.

H, Paying homemakers a fixed sum of general tax revenues for household work.

Answer 1

Labour force participation rate can be defined as the part of working population in the age group of 16-64 in the economy either employed or looking for work.

a. Since with an increase in the education of women, the women ability for work increases and their willingness to work also increases, so it leads to an increase in the labor force participation rate of married women.

b.

An equal sharing of household responsibilities between husband and wife leads to more participation of women for working outside, as a result, it leads to an increase in the labor force participation rate of married women.

c.

A reduction in the average number of children leads to less work in the house for the married women, so they can devote more time for working outside, as a result, it leads to an increase in the labor force participation rate of married women.

d.

An increased tendency to have children spaced more closely together leads to having more time for the married women to work more because by taking time for having next children leads to more time available to the married women, as a result, it leads to an increase in the labor force participation rate of married women.

e.

An increase in the earnings of husbands leads to sufficient income for the family expenditure, so married women feel that there is no need to work, so they don't look for the work, as a result, it leads to a decrease in the labor force participation rate of married women.

f.

Since with the Daycare paid out of general tax revenues, leads to an increase in the disposable income of the family because now women would also like to work because the expense of daycare by maids will be paid by the government tax revenue, it means the expense of having servant is paid by the government, so most women would like to have servants for the housework and they would like to work outside. Hence it leads to an increase in the labor force participation rate of married women.

(g)

Since the Daycare expense is tax deductible, so the burden of the expense of having servants for daycare does not fall on the family because it is tax deductible, so the disposable income is unaffected, so more housewife would like to work outside for earning money.Hence it leads to an increase in the labor force participation rate of married women.

h.

Paying homemakers a fixed sum of general tax revenues for household work gives an incentive to married women to have servants for the housework so that they can work outside for earning money. Hence it leads to an increase in the labor force participation rate of married women.