Question

2. Before we discussed how the higher LFPR of women has led to more competition in labor markets, leading to a higher need for education. In this week’s reading, we learn that competitive factors in labor markets is a key condition leading to the result MPL=W/P=real wage. Discuss the role of technological progress post-WWII, and its impact on real wages, the competitiveness of labor markets, trends in education, and wage disparities.

Note : Refer from book MACROECONOMICS, by N Gregory Mankiw.

Answer 1

The post and pre periods of World War II witnessed many difference of changes in the development of labour market which favored both genders. The gateway of ample opportunities was automatically opened for the woman who were awaited for real chenge to uplift their economic support as well as their self-independency in the society. Such decision entertaining the inclusion of women labor force in the all sectors industrial divisions of US, UK, Russia, France and Canada are considered as one among the main reasons for having the real impact of real wages, the competitiveness of labor markets, trends in education and wage disparities. Let us discuss those things briefly.

After the World War II, the need of more labor force increased day by day. In order to keep more labor force to combact the effects of World War II, the above mentioned countries involved in the war organized many Job drives for the women force. Especially Defense section recruited 3,50,000 women force in the military camp. Many women force joined as the airport pilot and also many women force continued to work even after post period of WWII. It accounts to nearly 75% of women who liked to work for the country. Near 32% of the women military force trained outside the country and worked during the war period.

The strength of the employees increased and the shortage of employees also reduced. The purchasing power of women family also increased with the high level of steady economic status which gained a momentum in this period. The Real wage is refers only to the difference of purchasing power between the post and previous situations based on the income earned by both women and the men labor forces. As women also contributed monetary benefits to their family, the real wage substantially increased to the mass extent.

Nearly 1.6 million women got employed in various industries. In the post war period, the women employees are only employed in traditional job sections like Cloth Stitching jobs, Typing jobs, Secretary Jobs, and other related women oriented jobs. But the post WWII has reversed the position. Many employers appointed many women labor force into Technical oriented jobs in Electronics company and other Financial backed industries like Banking, Share Markets, etc. So the increase in the women labor force posed a compeitition among male labor forces too. Men and Women labor forces were given the chance under the basis of Equal Opporunity Employer. Then the rate of Labor Force Protection Rights of the women were increased gradually due to technological progress of improving the women labour force to work.

Around 1950, the 51% of women employees were worked as the part of the labor force in the post war period. Many women of middle class family become graduates and post graduates in order to broke the barrier on education. And also it helped women to work with the equal status of the men labor force who have same educational qualification. Women started to realized their need of acquiring education in the perod of WWII. Many Technological Advancements also encouraged to include the women work force in the business sectors. Many women scientists and research development scholars contributed so many things to their own country. Though the wages of women was not considered as so high as compared to the wages of the Men employees. This biological indifference thought of industrialists had the tendency of testing the less physical power of the women with the high physical power of the men. But on the other side, women have the tendency of good and high mental power when compared with the mental power of the men employees, This caused the wage disparities in the post WWII. Then after many years of WWII equal pay of 1970 Act enacted in order to get the 92% of the men wages in all the sectors of industries.