Labor Supply Facts since 1900

Women working more

Men working less

Women’s increase swamps men’s decrease, so

Overall Labor Force Participation rising

Cromartie, Stella “Labor force status of families: a visual essay” Monthly Labor Review 130 (July-August, 2007): 35-41.

Cromartie, Stella “Labor force status of families: a visual essay” Monthly Labor Review 130 (July-August, 2007): 35-41.

Cohany and Sok, “Trends in labor force participation of mothers with children and infants” Monthly Labor Review 130 (February 2007):9-16

Cromartie, Stella “Labor force status of families: a visual essay” Monthly Labor Review 130 (July-August, 2007): 35-41.

Cromartie, Stella “Labor force status of families: a visual essay” Monthly Labor Review 130 (July-August, 2007): 35-41.

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

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

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

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

Comparison with other countries

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.

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.

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

The Economist July 27, 2006

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?)

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)

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

James Smith and Michael Ward, Women’s Wages and Work in the 20th Century. 1984

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?

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

Kinsella, Kevin and Yvonne J. Gist. 1998. Mortality and Health Economics and Statistics Administration, U.S. Bureau of the Census

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

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.

Beers, Thomas M. “Flexible Schedules and Shift Work: Replacing the “9-5” Workday?” Monthly Labor Review 120 (June 2000): 33-40.

Are hours flexible?

Campbell, Jim. “Multiple Jobholding in States, 2004.” Monthly Labor Review 128 (December 2005): 44-45.

Are hours flexible?

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?