Of Men And Women In The Us Economy

Conquering The Coming Collapse

Conquering The Coming Collapse

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Women's role in American society has changed dramatically over the past century. Social commentators have pointed to many causes for this change. In part, it is attributable to new technologies such as the washing machine, clothes dryer, refrigerator, freezer, and dishwasher, which have reduced the amount of time required to complete routine household tasks. In part, it is attributable to improved birth control, which has reduced the number of children born to the typical family. And, of course, this change in women's role is also partly attributable to changing political and social attitudes. Together these developments have had a profound impact on society in general and on the economy in particular.

Nowhere is that impact more obvious than in data on labor-force participation. Figure 14-3 shows the labor-force participation rates of men and women in the United States since 1950. Just after World War II, men and women had very different roles in society. Only 33 percent of women were working or looking for work, in contrast to 87 percent of men. Over the past several decades, the difference between the participation rates of men and women has gradually diminished, as growing numbers of women have entered the labor force and some men have left it. Data for 1998 show that 60 percent of women were in the labor force, in contrast to 75 percent of men. As measured by labor-force participation, men and women are now playing a more equal role in the economy.

The increase in women's labor-force participation is easy to understand, but the fall in men's may seem puzzling. There are several reasons for this decline.

More women are working now than ever before.

First, young men now stay in school longer than their fathers and grandfathers did. Second, older men now retire earlier and live longer. Third, with more women employed, more fathers now stay at home to raise their children. Fulltime students, retirees, and stay-at-home fathers are all counted as out of the labor force.

DOES THE UNEMPLOYMENT RATE MEASURE WHAT WE WANT IT TO?

Measuring the amount of unemployment in the economy might seem straightforward. In fact, it is not. Whereas it is easy to distinguish between a person with a full-time job and a person who is not working at all, it is much harder to distinguish between a person who is unemployed and a person who is not in the labor force.

Movements into and out of the labor force are, in fact, very common. More than one-third of the unemployed are recent entrants into the labor force. These entrants include young workers looking for their first jobs, such as recent college graduates. They also include, in greater numbers, older workers who had previously left the labor force but have now returned to look for work. Moreover, not all unemployment ends with the job seeker finding a job. Almost half of all spells of unemployment end when the unemployed person leaves the labor force.

Because people move into and out of the labor force so often, statistics on unemployment are difficult to interpret. On the one hand, some of those who report being unemployed may not, in fact, be trying hard to find a job. They may be calling themselves unemployed because they want to qualify for a government

Labor-Force Participation Rate (in percent)

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