ILRLE4450 Midterm Exam

households

1+ persons living in one dwelling unit and sharing living expenses

market commodities double burden family

1. assume all income earned in the labor market is spend on _____ goods. this assumption avoids the need to consider the determinances of savings and also means we may use the terms market income and the money value of market goods interchangeably. 2. assume that all non market time is spent in the production of _______. this avoids the need for analyzing a 3 way choice between market work, housework and leisure but also makes the distinction between non market (including volunteer work) and leisure unnecessary. we do not wish to suggest, however,t hat in reality no difference separates the two. one of the concerns about the impact of married women's increased labor force participation on their well being is that it has not been accompanied by a comparable reallocation of household chores. women are saddled with the "____ ______" of home and market work. working a double shift, may reduce the leisure time available to women, impede their ability to compete with men in the labor market or both. 3. focus on the individual rather than the ______ as a whole. this is realistic when the individual is the only adult in the family. when more than one adult is present, the division of labor among the, and the labor supply division of each is expected to be a family decision. you view the individual in a family context by taking into account the impact of the earnings of other family members on each person's labor supply decision. but, the labor supply of other members of the household is taken as given and assumed not to be influenced by the individual's own choice. this assumption is probably not too unreasonable when we consider women's labor supply decisions since, in most american families, husbands are still likely to remain in the labor market full time regardless of their wives participation decision.

single mothers

1990s growth related to combination of factors - Welfare reform - Expansions of the EITC - Buoyant economy • Reasons for plateauing, not known. - Unfavorable economic conditions a factor but can't be the full explanation - Plateauing precedes Great Recession

unambiguously ambiguously

A wage increase ________ increases the probability of labor force participation due to the substitution effect A wage increase has an _________ effect on the work hours of labor force participants because it has both an income effect and a substitution effect Traditionally women's responsiveness to changes in own wages and wages of spouse considerably larger than men's • Division of labor in the family

but why did the change take so long?

According to Claudia Goldin, many of the forces increasing married women's employment were apparent as early as the 1920's but yet not until the 1940's was there a substantial increase. She identifies institutional constraints- marriage bars to teaching and clerical work, and there was a lack of part time opportunities, work schedules were 5.5-6 days a week and 50+ hours a week.

large, small decreasing, increasing

According to Goldin, trends shed light on shifting gender roles - Around 1900 strong stigma against wives working (Goldin) • Income effect _____ (negative) • Substitution effect _____ (positive) - Through 1980 stigma decreasing; women drawn into labor force • income effect ______, substitution effect _____ (Goldin, Juhn and Murphy) - Since 1980 women's behavior becoming more like men's • substantial declines in income and substitution effects (Blau and Kahn)

Feminist

Although women in growing numbers are spending an increasing proportion of their time working for pay, their lives and their world continue to be significantly different from those of men. _______ perspective means we believe that individuals should have the opportunity to live up to their potential (rather than be forced to conform to stereotypical roles)

the missing women

Amartya Sen- the ______ _______ Sen found that the share of women in the population was lower in countries where female participation rates were lower. lopsided gender ratios- missing women historically due to female infanticide and neglect, more recently in India, China, Korea and some other countries, sex selective abortion ratio so lopsided in india and china creating issues in the marriage market

true

Are men funnier? this is widely believed to be _______ writing staff on humor shows is very male. there are fewer female stand up comics. evolution psychology- men use humor to attract women, like a peacock's tail consistent with this, women indicate a preference for mates who make them laugh, males prefer a mate who laughs at their humor but are they really funnier? evidence from a recent study- participants, 1/2 male and 1/2 female, wrote cartoon captions. in a blind test, raters of both sexes rated the captions for funniness. questionnaire- broad agreement among participants that men are funnier- writers and rater's, 89% of women and 94% of men finding: both men and women perceived the male captions to be funnier. BUT, gender difference- women rated the male captions as only slightly funnier, male preference for male captions was much stronger. You don't find strong support for the perception that women find men funnier. this doesn't fit with the evolutionary psychology explanation

same sex marriage and the law

As of 2003, no states allowed same sex marriage Number of states increased rapidly after that 2008: 2 states October 2014: 19 states + Washington DC Jan 2015: 36 states + Washington DC (70% of population) June 2015 Supreme Court ruled that the Constitution guarantees a right to same- sex marriage

older, married

Before 1940, the typical female worker was young and single. most women tended to leave the labor force permanently upon marriage and child bearing. 1940- peak age specific participation rate occurring among women 20-24 years of age, and declined for each successive age group afterwards. over the next 20 years, older married women/school age or grown children entered or re-entered the LF in increasing numbers, while little change occurred in the LFPR of women between the ages of 20-34, who were more likely to have preschool age children at home. as a result of the entry of ____,______ women, proportion married women workers increased from 30% in 1940 to 54% in 1960. WW2 experience may have played a part in encouraging this shift in behavior of married women because during the war, for the first time, large numbers of older married women worked outside the home. between 1960 and 1980, participation rates increased for all age groups of women. particularly notable was the increase in LFPR for women aged 20-34, who had not previously risen. reflects declines in the birth rate and increase in divorce rate over this period. large increase in participation rates of married women with small children. gain in the LFPR relative to 1980 for all age groups over 24. by 2011, 62 percent of married mothers of children under 6 and 57% of married mothers with infants under a year were in the LF. was now the norm for women with small children to work outside the home. age specific participation rates among women have come to more closely resemble the male pattern shown, peaking in prime working ages of 25-54.long term decline in male LFPR after WW2 was concentrated among younger men, those under 20 and older men, 55+

black white discrimination

Bertrand and Mullainathan (2004): • Sentfictitiousresumestohelp-wantedadsin Boston and Chicago • Equallyqualifiedresumesrandomlyassignedto African-American or White-sounding names • Whitenamesreceived50%morecallbacksfor interviews Pager (2003): • matched pairs of same race young men (2 blacks and 2 whites) applied for entry-level jobs in Milwaukee • One randomly assigned a criminal record • the criminal record consisted of a felony drug conviction (possession with intent to distribute, cocaine) and 18 months of (served) prison time. • A drug crime (as opposed to a violent or property crime) was chosen because of its prevalence, its policy salience, and its connection to racial disparities in incarceration (the "war on drugs" has had a disproportionate impact on African- Americans) Whites: a criminal record reduced the likelihood of a call back by 50% - Blacks: a criminal record reduced the likelihood of a call back by 60% - Whites with a criminal record had a higher chance of call back (17%) than blacks without a criminal record (14%)

growing young low educational

By the 1950s, marriage bars essentially gone trends in supply and demand: demand _____ in clerical jobs supply of _____ single women drying up ____ birth rates in the 1920s and especially the 1930s increased ______attainment. baby boom (1946-63) and a decline in the marriage age. the supply of older, married women was plentiful well educated- high school grads had previous experience working when single, kids are in school or grown.

increased decreased

Clausia Goldin- around 1900 when relatively few attractive labor market options were available to women and there was considerate stigma against wives working- married women's labor supply was largely determined by their husband's LM opportunities, rather than their own. when women's education levels increased and white collar employment because available to them, the stigma against married women working decreased. their responsiveness to their own labor market opportunities _____ while their responsiveness to their husband's income ______. as women become more strongly attached to the labor market and were committed to their careers, they would be less likely to move in and out of the labor force or greatly change their hours worked in response to changes in their wages. the expectation that women's labor supply would become more likely men's has indeed been realized. quiet revolution- women have their jobs more like a career rather than a series of disconnected jobs.

family production

Colonial america- 1607- when the first english settlement in the NW was established in Jamestown VA In colonial american, the ______ enterprise was the dominant economic unit, and _______ was the major function of the family. family was largely self-sufficient with the household producing most of the necessities itself. not until well into the 18th century that production outside the home for sale came to dominate the economy. Both women and men held the same economic role- producer- but their tasks differed. women did household work or "light manufacturing" tended gardens, cared for farm animals and provided seasonal help with crops. men were responsible for the majority of the more physically demanding agricultural work, including plowing. most of the food or other raw materials consumed were grown or produced on the farm. all members of the family capable of making any contribution participated in production. important economic role of children, encouraged large families. 7 children on average.

Analyzing Trends in Male Labor Force Participation

Decline for younger men • Older men - Long-term decrease for: dominance of income effect over substitution effect - Modest increase since the late 1990s • Husband-wife age difference and joint retirement decisions • Change in social security benefits • Increased uncertainty in private pensions • Changing nature of jobs Decline for prime age males - Declining demand and declining real wages for less educated men - Expansion of government disability programs - Two earner family?

female and male LFPR trends

Dramatic increase in female participation rates for 50 years after WWII • Female rates have plateaued since the mid-1990s • Less dramatic decrease in male labor force participation rates over this time • Sharp drop in participation rates for men and women over the Great Recession and its aftermath

long term trends in women's LFP

Factors influencing the value of market time (w) - Education and experience - Demand for female labor - Overall productivity increases Factors influencing the value of nonmarket time (w*) - Market substitutes - Technological change • Electrification, plumbing, appliances • Baby formula; birth control pill - Demographic trends - Changing role of husband's income - Changing tastes

quiet revolution

Goldin says that women's rising participation led to a set of interrelated changes that together constituted a _____ _______ many college women today would like to combine a career and a family and worry about the ability to do so. Golden looks at various cohorts to see how the situation of women has changed over time. years when women graduated college 1900-1919= family OR career 1920-1945- job then family 1946-1965- family then job 1966- 1979- career then family 13-18% 1980-1990- career AND family 21-27% family means ever having had a first birth career= wage or annual income greater than male college graduate at the 25th percentile for two or three years. this is assessed around age 40

great recession

Great Recession: began in December 2007 and ended in June 2009 • Most severe downturn the US had experienced since the Great Depression • Great recession followed by a prolonged period of high unemployment and low labor force participation • Current UE rate 5.3% (July 2015) suggests we are finally recovering (but low E/POP of concern)

production possibilities frontier

If Kathy and Jim are each dependent on their own output, their consumption is limited to their individual _______ ________ ______- shows the largest feasible combination of the two outputs that can be produced with given resources. the slope of the line tells us the money value of the market goods Jim must give up to get an additional dollar of home goods. more steeply sloped= more market goods to get an additional dollar of home goods the combined PPF makes feasible some combinations of market and home goods that would not be attained on separate PPF's. this gain in output may potentially be distributed as to make them both better of them they would have been separately. to obtain the gains, the couple must produce a non trivial amount of both market and home goods, for its production of both commodities that given each of them the opportunity to specialize in the area of their comparative advantage. gains from specialization will be larger the more the two differ in their comparative advantages. indifference curves can represent preferences. you are indifferent about being on various points on that curve as they have the same utility. negatively sloped- for the amount of one good to increase, the amount of the other needs to decrease. convex to the origin- steeper as we move left and flatter as we move right. relatively scared goods are valued more highly. indifference curves never intersect. all points on any one curve represent an equal amount of utility, while any point above (below) represent a larger (smaller) amount of utility. to determine division of labor, or time allocation, a couple will actually choose, one must consider both their production possibilities and their tastes or preferences. it is then readily possible to determine the combination of how we produce goods/market produced goods that a ration couple with those tastes will choose. it will always be a point where the PPF just touches the indifference curve it reaches. couple always prefers to be on the highest indifference curves, but because they are constrained to the possible combinations of output represented by the PPF, they cannot realistically reach an indifference curve that all points lie above the frontier.

nature nurture

If the same roles of women and men have existed always and everywhere some may conclude that these roles are biologically determined and that they probably cannot or should not be changed. _____ = biological differences, genes ______- social environment, culture some have emphasized biology and particularly the biological origins of differences between men and women.

ambiguous

Impact of the business cycle (unemployment) on labor supply is theoretically _______ - Added worker effect - Discouraged worker effect • Empirically: net effect => discouraged worker effect dominates • Disproportionately affects "secondary" workers

assimilate

Increasing number of immigrants since 1970 • Shift in source countries from Europe and North America to Asia and Latin American • Shift to countries with more traditional gender roles than the US • Does this affect behavior of immigrant women in the US? Married women immigrants from countries with high female labor force participation rates work higher annual hours than women coming from countries with low female participation rates, even controlling for their personal characteristics (e.g., age, education, race/ethnicity) • Both groups of immigrants work less that natives on arrival and __________ towards native-born women's labor supply patterns as they spend more time in the United States, but the gap in their labor supply persists Education, fertility, and labor supply of parental generation does influence their US-born children However, considerable assimilation to children of native born =>immigrant assimilation occurs in part across generations

substitution effect

LFP decision is influenced by labor market opportunities an individual faces, particularly the wage rate available in the labor market. _________ __________- an increase in the wage rate all else equal, raised the opportunity cost of time spent and the price of non market time individuals are expected to respond by supplying more time to the market and substituting market goods for non market time in consumption or production. education is strongly positively associated with labor marketing earnings. education increased market productivity and hence market earnings. the positive effect of educational labor productivity may be reduced to the extent that additional education also raises the productivity of women's non market time. a positive relationship exists between education and labor force participation among women. self selection- women who plan to spend a relatively high proportion of their adult years in the labor force are more likely to invest in their education.jobs held by more educated individuals usually offer greater non monetary attractions. LFPR of high school graduates and of college educated women increased substantially more between 1970-2011 than they did for women who did not complete high school. LFPR of men fell for all education groups, especially those with less education. relative market wages also fell for less educated men and women. wages of less skilled workers have decreased relative to their more highly skilled counterparts.declining LFPR of less skilled men and women could be due to declining market wage opportunities. single headship increased considerably more for this group than for more highly educated

decreased

LFPR for women reported for 1890 is arguably and underestimate because the official data for that year undercount the productive activity of women's particularly when they worked within the home and in family farms and enterprises. LFP was likely U-Shaped with the low point around the 1920's. work for pay outside the home particularly contributes to the status of women. before 1940, the increase in women's LFPR was relatively slow. starting this year, women's LFPR began a strong, steady increase that can be seen over the next 50 years. 60% in 1995 and has remained roughly the same since then, declining somewhat in the wake of the Great Recession. 25-54- 3/4 of women in labor force in 011. overall, women constituted 47% of the labor force. (25% in 1940) WW2- as men left their civilian jobs to join the armed forces, women entered the labor force in unprecedented numbers. Between 1940-1945; female LFPR has increased 28->36%. some decline occurred in the immediate post WWII period, but the upward trend in female participation quickly resumed and continued through mid 1990s. decrease in men's LFPR since the 1950's. less dramatic than the rise for women. 86% in 1950, 73% in 2007, 71% in 2011. the sizable post 2007 dip likely reflecting the effects of the great recession. the difference between the female and male LFPR has _______ sharply from 55 percentage points in 1940 to 12 percentage points in 2011. (convergence)

asians higher whites

LFPR have risen for all groups of women except for _____, only have data starting in 1995. and that participation rates have increased substantially more for whites than blacks. african american women traditionally had far _____ LFPR than white women, the black white gap in participation closed in the mid 1980s. black women's LFPR surpassed white women in late 1990s due to a substantial increase in their participation rate during that time and remains slightly higher than that of whites today. hispanic women's LFPR are consistently lower than those of _____ in all years. asian women's participation rate is about the same as or slightly lower than that of white women. considerable decline in the participation of African American men compared to whites. In 1955, participation rates for white and black men were roughly equal at 85%. LFPR for both groups, but more precipitously for blacks, 64% blacks, 70% whites- today. hispanic and asian men are more likely to be in the labor force than whites.

Period of industrialization

Late 18th, early 19th century, development of the textile industry, young single women and children left their family farms to work in new factories. some type of work they did at home, only in a new location and under the supervision of a foreman. worked long hours, lived in corporate board houses. difficult conditions in mills. enabled young women to supplement family income and they were able to retain some of their earnings to accumulate a "dowry" that would make them more desirable marriage partners. once married, women left jobs to look after their households. by the 1840's, immigrant women had largely replaced the NE farm girls in factories. working outside house remained rare for white, native born married women. the more technologically advanced industries that subsequently developed relied almost entirely on male workers. married women's employment differed substantially by race/ethnicity. married immigrant women more likely to work outside the home than native born.

factories consumption traditional family cult of true womanhood

Many husbands followed the shifting locus of production into ____ and offices and were able to purchase newly available factory produced goods for their family. wives' opportunities to help out on a family farm or with a family business diminished. shift from family as a production unit to a ____ unit. redistribution become an important function for the family as the wife and children become the economic dependents of the market productive husband. the husband took on the role of the breadwinner and wives assumed the role of the homemaker- the _____ ______ husbands had the primary responsibility for earning living. they made decisions about how income was to be spent. dominant roles in both the public (market) sphere and the private sphere. married women's roles was limited to the domestic (private) sphere. role of wife and mother was widely accepted as the only proper and fulfilling life for a woman. Market work was still quite common for single women. among the poor, it was often economically necessary for wives to enter the labor market. small number of college graduation women who chose careers over married. more goods and services by households began to be produced outside the home and advances in household technology and house house appliances made housework less burdensome. Elaborate multi course meals made possible, new standards of cleanliness that housewives are expected to meet. the net result was that the number of hours that full time homework devoted to housework, more than 50% of the week, did not change from early 1900s to the 1960s. Emphasis on the productive role of the housewife diminished. Whereas the colonial wife was valued for her industriousness, industrialization brought with it the _____ ____ _____ _____, which equaled piety, purity, domesticity and submissiveness with the femininity to which all women were expected to aspire.

reasons why male LFP has decreased

Men's LFP have been delving. tendency to stay in school longer, reflects increasing skills demanded by our advanced economy. expenditures on education are more profitable when they are young, longer period over which to reap future returns to this investment in the form of higher earnings. with rising real income families are able to keep their children in school longer not only because they can better adored to pay the bills but also because they can better afford to forgo the contribution their children might otherwise have more to family income. as real wages rise after last century, men's demand for non market time increased. increased propensity for men to retire at early age. SS and pension schemes, erected an income effect that encouraged older males to retire. couples tended to make joint retirement decisions. men are typically older than their wives and staying in LF longer to match wives. hobs have become less physically demanding making them more attractive to older individuals. older women- increased LFP during GR like men, younger women, declined due to getting more education, fell sharply during GR like young men. falling relative demand for less skilled workers which depressed their wages- contributed to decreased LFP of men. expansion of government programs that provide disability income to men below convention retirement age. contributes to a lower LFP. less skilled are disproportionately affected by disability because the pop cost of leaving the labor force is smaller for low wage workers. women's increased employment outside of the home could contribute. additional income may induce some males to leave the labor force for periods of time.

Scarcity

Neoclassical economists conclude about decision making under conditions of ______- not enough resources are available to satisfy everyone's wants and choices have to be made about how these resources are used. using labor, capital and land to produce one good means it is crucial to recognize that fewer of these inputs will be available for producing other goods.

U-SHAPED

Over the course of US economic development, Women's LFPR exhibited the expected ___-_____ pattern. the frontier experiences were somewhat unique.

recent stalling of growth

Rising participation rate for married women (especially mothers) = engine of growth of female labor force - Married women's participation grew as first mothers of older children and then mothers of younger children drawn into the labor force - Participation rates of married mothers first began to slow in the 1990s and have plateaued since the mid- 1990s (as has the overall female participation rate) - Newspaper articles about an "opt out revolution" misleading but the plateauing trend is undeniable Also rising participation rate for single mothers, especially in the 1990s - But their participation rates began to plateau in the 2000s Unfavorable labor market conditions a factor but can't be full explanation (plateauing preceded downturn) • Husband's income - Husband's income increased more rapidly in the 1990s than the 1980s - But research finds this played only a small role in the slowing of participation increases • Slowing changes in gender role attitudes - But cause and effect? Difficulty combining work and family US female labor force participation rate falling behind other developed countries • In 1990 US rate was 6 out of 22 countries • By 2010 US ranked 17th - Other countries expanded family friendly policies (parental leave and right to part-time employment) compared to the US—this explained about 30% of the decline in participation in the US compared to the other countries - But costs as well as benefits to these policies—US women did much better in share of managerial and traditionally male professional jobs

Overgefell V. Hodges

SC (Overgefell v. Hodges) agreed to hear cases challenging bans in 4 states (June 2015): SC established a constitutional right to same sex marriage (14th Amendment-equal protection of the law, Bill of Rights) Justice Kennedy rooted the ruling in a fundamental right to marriage, of special importance to couples in raising children. Withouttherecognition,stabilityand predictability marriage offers...children suffer the stigma of knowing their families are somehow lesser. They also suffer the significant material costs of being raised by unmarried parents..." Same sex marriage permitted in 17 other countries (as of Jan 1 2015) • Examples: Netherlands, Canada, Belgium, Norway, Sweden, Denmark, Spain, South Africa, Portugal, France, United Kingdom, Argentina

less housework

Shifts in comparative advantage of women and men substantially reduce the gains to marriage. it is not surprising that the share of currently married adults has fallen. continued prevalence of marriage- gender differences in comparative advantage have not completely disappeared. women continue to earn ___ than men in the labor market. they continue to do the bulk of the ____ even when they are employed outside the home.

reasons why LFPR have not continued to increase for women passed the 1990's

Since 1990's female LFP have plateau'd and even decreased slightly. expansion of the female LFP was a reflection of the shifting roles of married women as first married with older school aged children entered the LF in increasing numbers as were later joined by married mothers of younger preschool children. participation rates of unmarried mothers also increased starting in the 1990s, US experiences its largest economic expansion during peacetime, 10 years. an expanding economy disproportionally benefits less skilled workers esp single fame headed households. changes in welfare policies (new work requirement for welfare recipients) increase in single mothers LFP and contributed to a substantial decline in welfare roles- EITC expanded several times in 1990s. raising the wage subsidy received by low income single mothers and thus increased their incentive to work outside the home. recessions in 2000's period during which the economy was again expanding but job growth was disappointing and employment difficulties remained. but doesn't provide full explanation for decline. changes, or lack thereof in gender role attitudes. little change in attitudes since 1990s. possible that the lack of further changes in gender role attitudes contributed to the flattening of growth in women's LFP. perhaps the LF already includes the types of women who can most readily participate and have the greatest incentives to do so. other countries offer more generous parental leave programs, both in length and benefits, received. and many require employers to provide greater part time options. expansion of family friendly policies in other countries accounts for a substantial portion of decrease in US women's LFPR. But, US women were more likely to have full time jobs as managers or professionals. aging of the population- downward pressure is exercised on LFP of both men and women of baby boomer generation.

lefthand

The LFPR was greater for African american women than native born whites. same jobs they held during slavery. due to low earnings of their spouses that these married women needed to work. from the colonial period through industrialization, married women's labor force participation appears to have decreased consistent with the _____ portion of the U. married women were quite active on family farms and enterprises during colonial period and were not employed extensively outside home as industrialization becomes established. LFPR began to increase as economic development increased further. Quite a bit of married women's work was not fully counted. undercounted activities include work performed for income in the home, unpaid work in the family farms, and businesses and even wage work in manufacturing. Golden estimates that participation rates for all women and married women in 1890 were about the same as their participation rates in 1940. LFPR- fell with industrialization, reaching the bottom of the U around 1920's, then rose dramatically post 1940- rising portion of the u.

family home

The ______ is a unit whose adult members make informed and rational decisions that result in maximizing the utility or well being of the unit. The simplest model assumes that the family's goal is to maximize its utility or satisfaction by selecting the combination of commodities from which its members derive the greatest possible amount of utility. these commodities are produced by combining the home time of family members with goods and services purchased in the market using labor market earnings. Virtually all purchased goods and services require an infusion of ____ time to transform them into the commodities that provide utility. Even time spent in leisure generally requires the input of market goods and services to be enjoyable. thus, time spent on paid work produces the income necessary to purchase market goods, which in turn are needed together with home time to produce commodities. How the time of each individual should be allocated between home and market most efficiently in order to maximize satisfaction

neoclassical

The economic man- he interacted with others in competition or in cooperation, but it was his individual well being that he would attempt to maximize Human need for companionship, sexual attraction, affection and the desire to have children all play a substantial part in family formation. human need for independence and privacy as well as incompatibilities and preference all play a large part in family breakups. the _____ model points to important efficiency gains arising from the traditional division of labor in which the husband specializes in market work and the wife specializes in house work. such an arrangement is less and less prevalent. Individuals continue to form families despite this decrease in specialization.

labor force out of the labor force

U.S. Census Bureau conducts a survey each month to gather statistics on the labor force. collected for the civilian non institutional population over age 16. they excluded individuals who are in the active duty military as well as those who are incarcerated or in other institutions. ______ ______- includes all individuals 16 years of age and over who worked for pay or profit during the reference week or activity sought paid employment four weeks prior to the reference week. the labor force is comprised of both the employed and the unemployed. individuals who are neither employed or unemployed are classified as ___ ____ ____ _____ ____

Frances Perkins

US Secretary of labor 1933-1945, force behind New deal labor programs, social security, unemployment insurance, welfare

market, home commodities

Use a neoclassical model and assume that the individual's goal is to maximize utility or satisfaction. the economic model suggests that individuals decide whether or not the participate in the LF by comparing the value of their times in the ________ given their hourly wage rate (w) to the value they place on their time spent at _____(w*). If the value of the market time is greater then that of home time (w>w*) they choose to participate in the labor force. if the opposite, they choose to remain out of the labor force. individuals are viewed are deriving utility from the consumption of _______- goods and services that are produced using inputs of market goods and non market time.

larger increases

When you look at supervisory time, the gap between employed and non employed mothers is _____. single mothers spend less time with their children since married mothers have the advantage of a second parent in the household, with whom to better coordinate schedules to allow for greater time with children. mothers time spent in child care fell from 1965-1985 as they increasingly entered the labor force. but from 1985-200s, mothers time in child care rose considerably for both single and married mothers, non employed and employed. in 1985, fathers also spent increased time with children but the gender gap in time spent with children remains. since the mid 1990s, more highly educated mothers and fathers spend more time directly engaged with their children than their less educated counterparts and this gap has increased over time. time with children may be a normal good, meaning that time with children ______ with income. highly educated parents in recent years view one on one time with children as a necessary investment in their children. even if less educated mothers work the same number of hour and have similar preferences, they may have less flexible schedules reducing the opportunity to take time off to devote to their children. the rise in single parent families means that an increasing number of fathers do not live in the same household as one or more of their children. 22% of fathers who live apart from their children visit once a week. 27% never spend any time with them.

Factors influencing gender differences in unemployment rates

Women have lower labor force attachment - Raises women's unemployment due to churning (job search) - Lowers women's unemployment due to discouragement • Gender differences in occupations and industries - Men in cyclically sensitive occs and inds (blue collar jobs, manufacturing and construction - Women in less cyclically sensitive occs and inds (white collar jobs, education and health) => Various factors work in opposing directions and their impact varies over the business cycle

unemployment rates by gender

Women used to have higher unemployment rates than men • Male unemployment more cyclically sensitive than female unemployment • Since early 1980s recession, unemployment rates of men and women have been about the same • However in recessions the male rate is higher than the female rate

WW2 TRENDS

World War II • Factors influencing the value of market time (w) - Mobilization of men - Patriotic appeals to contribute to the war effort Factors influencing the value of nonmarket time (w*) - Low birthrates - Decrease in husbands' incomes (for some) - Increased availability of day care

Utility rationalist costly

_______ = satisfaction, we cannot buy and do everything, it is crucial to be aware of how much satisfaction is lost by giving up desirable alternatives. ________= involves some knowledge of available opportunities and the terms on which they are available. only on the basis of such information is it possible to weigh the alternatives and choose one that provides more utility than any others. people are expected to behave rationally in this sense. utility is to be maximized. An individual who blindly follows the traditional course of action without considering costs and benefits or who fails to consider long run implications or indirect effects, is not necessarily rational. People tend to try to maximize their well being rather than they are indifferent to it. Knowledge needed to make optimal decisions is often difficult and ___ to obtain. When this cost is likely to exceed the gain derived, it is rational to select an option that meets a minimum standard of acceptability, rather than to insist on maximization. when additional information can be provided relatively cheaply and easily, it is likely to be useful in improving decision making.

bargaining models threat point divorce threat

a class of _________ ______ has been developed that allows for husbands and wives to have difference preferences, with outcomes determine through a process of bargaining. in these models, the bargaining power of each spouse is determine by his or her ______ _______- the level of well being that each would attain if the couple cannot reach an agreement within the marriage. in the most common type of family bargaining model, termed ______ ______ bargaining models, the threat point depends on the amount of income each partner would control if the marriage were to end. the final solution is likely to more closely reflect the preferences of the party with the stronger threat effect, the one who is better able to walk away from the deal. Also, laws defining the division of marital property, each individual's probability of remarriage, as well as the eligibility rules for and benefit levels under welfare programs. once total income is maximized, the next issue is to decide how to allocate this joint income among the difference commodities the family might want. in this view, the outcome will in large part depend on their relative bargaining power. level of welfare benefits and food stamps available to her if she divorced, her labor market opportunities, her chances to remarry. he may need to pay alimony and child support and may also have less contact with his children, he is likely to have to purchase some household services formerly produced by his wife.

cohort

a group of individuals who all experienced a particular event during the same time span, ex. born in the same period.

discouraged workers

a subset of marginally attached workers who specifically state that their reason for being out of the labor force is that they do not think labor market opportunities are available for them given their skills, or express concerns about labor market discrimination.

lower

although women traditionally had higher unemployment rates then men, women's unemployment rates have tended to be about the same since the early 1980's. during recessions, women's unemployment rates are _____ than men's. despite increases over time, women continue to have lower labor force attachment than men. on one hand, larger proportion of entrants and re-entrants among women in the labor force tends to increase female unemployment relative to male unemployment because many will experience a period of unemployment as they search for jobs. the weaker labor force attachment of women means that they are more likely then men to exit the LF when they lose their jobs and then to be counted as out of the labor force rather then unemployed. particularly in recessions, this works to lover women's unemployment relative to men's

prime working age

ages 25-54

income substitution increase decrease

an increase in the wage rate correspond to an outward rotation of the budget constraint because more market goods can now be purchased for every hour worked. able to then reach a higher indifference curve. could result in either an increase or a decrease in hours supplied to the market. for labor force participants, an increase in the wage rate produces two distinct effects- on the one hand, the increase in the wages like an increase in income. ______ effect- all else equal, increase the demand not only for most market goods but also for non market time, and thus lowering hours supplied to the market. increase in the wage rate raised the opportunity cost of non market time- _________ effect that, all else equal causes a reduction in non market time and increase in the supply of hours to the market. when a wage rate rises, substitution effect operates to increase labor hours supplied but the income effect operates to reduce labor hours supplied. the net effect is indeterminate. if the substitution effect dominates, the work hours _____. if the income effect dominates, the work hours _____ wage increase unambiguously raises the probability of LFP because in this case, there is only a positive substitution effect, no offsetting income effect occurs.

year round workers

an individual who workers 50+ weeks per year, including vacation

sociobiology and evolutionary psychology

appeal to Darwin's theory of natural selection to argue that genes determine behavioral traits for humans and animals

changing role of husband's income- effect on women's rising LFP

as their husband's real income goes up, all else equal, women's LFPR is reduced due to the income effect. however, the positive substitution effect of their own rising real wages tend to more than offset the negative income effect due to the increasing real income of their husbands. responsiveness to married women's LP to their husband's income has decreased over time. those of less educated and unskilled men have declined over time. little effect men's income has had over women's labor supply in recent years

scale effect

as wage increases, price of product will go up, less will be purchased and fewer workers will be employed

marriage bars

bans on hiring married women and on retaining women employees if they married. they were prevalent in school teaching and in clerical work. this started before the GD, and then grew and was very widespread. large firms used firms rather than discretion, perceived married women as less productive and did not want to make case by case decisions. the loss was small because there was a large supply of young, single women, there was a low supply of married women. social norms did not challenge the practice.

social structure theory

biology is a factor, but current social environment and culture (shared knowledge and beliefs) also play an important role. examples of gender differences that are sometimes found: math test scores, preferences in competition, risk taking, characteristics of mates

black and white LFP differentials

black male LFP decreased more than white male LFPR. black female LFPR increase more slowly than white female LFPR. blacks obtain less education on average, they are more likely to drop out of high school than whites. disproprortionar negatively affected by the overall trends toward lower participation among less educated individuals. but, still more sever for blacks when looking at all low skilled individuals. expansion of government disability programs- attractiveness to these programs to blacks is increased. dramatic increase in incarceration rates, which have been rising more rapidly for blacks than whites. ex-offenders are moe likely to have poor employment prospects than non offenders due to the negative effect of incarceration itself. stronger enforcement of child support laws in recent years. this is tax on noncustodial fathers. expected to reduce work incentives especially for those with low incomes. increased black women LFPR- black women more likely to be single family headed households than are white women.

substitution effect

change in the wives labor supply associated with a change in the wage she can earn in the labor market, all else equal.

labor force participation.

child care subsides by the government could lower the cost of child care. a reduction in child care casts is expect to increase women's LFP. if the budget constraint shares the wage you're earning after child care costs are subtracted out, a decrease in child care costs is equivalent to an increase in her wage rate. because in child care cases results in deciding to enter the lF. we would expect the availability of child care at a lower price to increase the ____ ____ ____ ____ of women, esp with small childcare. free public kindergarten has a substantial positive effect on the labor supply of mothers of 5 year olds. because women would experience shorter and fewer labor force interruptions they would accumulate longer and more continuous labor market experience. enhances their career progression and increases their earnings, reinforces the tendency to spend more time in the labor market. could contribute to a reduction in labor market inequality between men and women.

comparative advantage opportunity cost

commodity production is carried out most efficiently if one member of the family specializes in market production while the other specializes in home production. they may then exchange their output or pool the fruits of their labor to achieve their utility maximizing combo of commodities. for there to be gains from this arrangement, it is necessary for the _________ _________ in home and market production of the two individuals to differ. one partner must be relatively better in household production compared to the other partner being relatively better in market work. ___________ __________- the value of this best alternative forgone when you make a decision. a partner who is relatively better in household production compared to market work then his or her partner has the lower opportunity cost of spending an hour in household production and thus has a comparative advantage in that activity. the partner who is relatively better in market work compared to household production than his or her partner has the lower opportunity cost of spending an hour in market work and this has a comparative advantage in that activity. it is frequently the case that women have a comparative advantage in household work and men have a comparative advantage in market work. the reason is that men and women are traditionally raised with different expectations and receive different education and training. Women have been discriminated against in the labor market, lowering their market earnings. the traditional division of labor itself is likely to magnify the differences in the household and market skills of men and women because both types of skills tend to increase with experience "on the job."thus, a small initial gender difference in comparative advantage is likely to increase considerably over time. treating children according to gender rather than individual talents and discriminating against women workers in the labor market clearly introduces distortions. to the extent that women's relative advantage for housework is socially determined and reflects unequal access to market opportunities, the traditional division of labor is not always efficient, let alone desirable, particularly when it entails disadvantages for women

life cycle

comparative advantage likely varies with the _____ ____. at the same time, labor market earnings and career opportunities tend to increase with work experience. labor market earnings and career opportunities tend to increase with work experience and decline during years out of the labor market. while wives specialization in home production may maximize family well being in the short run, this allocation of time may not be advantageous to the wife or to her family in the long run. this is particularly the case as women have come to increasingly value career success in labor market. it might be argued that offsetting these disadvantages for the wife's career, and the lifetime income of the family is the opportunity for a stay at home mother to spend more time with her children. differences in the amount of time that employed and non employed mothers spend with children appear to be quite modest.

marriage specific investments

refer to skills and knowledge developed in marriage and other investments made during a marriage that are worth for more within the marriage than they would be if the marriage terminated. ex. children

why is the comparative advantage of women changing

declining comparative advantage of women in non market work growing weight placed on disadvantages with changing attitudes and changing labor market opportunities. women increasingly value careers there has been the growth of the two earner family, more wives working and more men doing housework. but not equal. marriage rates are lower and the divorce rates are higher than the earlier period with more traditional division of labor with decrease in strong economic rational model for the married couple family

volunteer work

defined as tasks performed without direct reward in in being or intended that mainly benefits others rather than individuals themselves or their immediate family. true altruism (conscience)- contact with congenial people, dedicate to a particular cause, desire for recognition, furthering one's business and advancing own's and spouse's career for the well being of loved one all pay a part. volunteer activities also help those out of the labor force, typically women get jobs when they re-enter. opportunities to build human capital and expend social and professional networks. women with demanding family responsibilities may value volunteering more flexible schedule and others may appreciate the greater ability to choose the type of work they do. volunteer work is unpaid. but, this does not make it unimportant to the functioning of the economy and the well being of others or that participation if unrelated to individual self interest. anything that enhances life in the community influences the well being of the individuals themselves and of their families. women volunteer at higher rates than men. women are more likely to be part time workers, a group with a much higher volunteer rate. even women who are employed volunteer at a higher rate than males. women and men differ in the kinds of volunteer work they do. women contribute more to health organizations and educational institutions, while men more voluntarily work for civic, political sports/rec organizations. there are no substantial differences in the percentage of women and men involved in social welfare organizations or religious institutes. volunteerism is greater former highly educate and for higher income individuals, explains racial differences. women's increase earnings increase their capacity to donate money to worthy causes in place of their time.

marginally attached workers

defined as those who are not currently working or looking for work but indicated they want a job and are available for a job and have searched for work some time in the last year. (not in the last 4 weeks). they are considered to be the most likely ones to resume their search and re-enter the labor market when the economy picks up.

demand curve quantity demanded diminishing marginal productivity

downward sloping, wage rate (price) is on the vertical axis and quantity (number of workers) is on the horizontal axis. Represents the various amounts of labor that would be hired at various wages by firms in this labor market over a given period of time. if all else remains the same, changes in the wage rate cause movements along this curve. a change occurs in the _______ _____ but demand remains the same. if the other factors do not remain the same, the entire demand curve may shift. in the short run, there is _________ ________ _____- additional units of labor provide progressively less additional output when combined with fixed amounts of capital. capital can only be expanded or contracted over a longer period of time, so the only way to immediately increase output is to hire additional workers or have workers put in longer hours.

colonial

during the _______ period, there was a relatively high status for women. they were self-sufficient agricultural women and they had an important productive role and relatively high status. women's role in reproduction (labor scarce), completed fertility, 8-10 births, women scarce. women valued for their role in production. important exception was the slave population, these men and women were toiled with low status and no rights. early industrialization- importance of women's role in production diminished and status declined, although women continued to work hard. the traditional division of labor developed. the husband was the breadwinner and the woman was the homemaker. the breadwinner role was more important. also, women had less to do in the home. fertility declined to 5 births for women born in the early 1800s and 3 births for those born in the late 1800s. this was a demographic transition. there were more goods available in the market. technology made housework easier. there was the cult of true womanhood. women's labor force participation in the US followed a U shape though this is not always reflected in the statistics. Goldin- participation is relatively higher in the early period, began to fall with participation reaching the bottom around 1920, and then increased. official statistics show a steady increase.

other economic advantages to married

economics of scale public goods externalities gains from shared consumption marriage specific investments risk pooling institutional advantages

social structural approach

emphasizing the role of social environment and culture in determining gender roles and behavior. culture refers to knowledge, beliefs, and evaluations shared among members of a society. In this view, biology constrains but does not determine human behavior. roles depend on men's greater size and physical strength and women's reproductive activities, but also the society's economy and social organization which is influenced by its technology. Biological nature is seen as a broad base upon which variety of constructs, with respect to socially determined gender differences can be built This view leaves greater room for adaptation in behavior to changing circumstances. the environment may influence and condition biological structures and responses. gene expression or suppression may to some extent be influenced by environmental factors. men tend to place a higher value on physical appearance in selecting mates while women tend to focus on intelligence and other qualities plausibly associated with being a good provider. women have a stronger preference than men for income compared to physical attributes.

labor force participation rate

equal to the number of its members who are in the labor force divided by the total number of the group in the population

social structural theory explanation

explanation based on environment and culture. preferences consistent with traditional gender roles. they persist due to cultural transmission, men have a larger provider role even in their current environment. these gender differences in mate preferences exist in many cultures. but, the extent of gender differences varies. AND, the gender differences are smaller when there is more gender equality in society, as measured by the UN index.

theory

explanation of why an event might have occurred is not intended to be a full description of an underlying reality. economic theory can help us understand the present and correctly predict the future. collecting data is a slow, expensive and generally unglamorous undertaking. some substantial gaps occur in official data collection.

blacks young

extremely high unemployment rates of african americans- men and women, unemployment rates are about twice as high for ____ as for whites even during good economic times. Gap widens further in an official recession. blacks- lower average levels of education, a lack of jobs located in or near communities where many of them live, and employment discrimination. higher incarceration rates of young black men. hispanics also tend to have higher unemployment rates than whites, though the difference is smaller. high unemployment in good and bad times- teens and ___ workers were hit hard by the great recession.

production public

factors influencing women's relative status historically- technology and biological constraints-women's role in production and distribution the more important women's role in _____, the higher their status. women's participation in the ____ sphere, outside the home, is also important. claudia goldin- there is considerable evidence that as women's work moves out of the home and family, even if such work was previously market oriented, women gain freedoms in the polity, the society, and in their own households.

negatively

factors that increase the value of market time (w) tend to increase the probability that the individual will choose to participate in the labor force all else equal. LFPR is positively related to the wage or the value of market time. factors that increase the value of non market time (w*) tend to lower the probability of labor force participation, other things being equal. therefore, LFP is _________ related to the value of non market time or home time.

added worker effect discouraged worker effect

fluctuations in economic conditions affect secondary workers most. _______ _____ ____- products that during economic downturns if the primary earner becomes unemployed other family members may enter or postpone their exist from the labor force in order to maintain family income. the decline in their non labor income due to the unemployment of the primary earner lowers the value of other family members non market time. such individuals may enter the labor force when economic conditions improve and the primary earner is again employed on a regular basis. ______ ______ ______- during times of high unemployment when individuals lose their jobs, they may become discouraged and drop out of the labor force after a fruitless period of job search. others who are out of the LF may postpone entry until labor economy improves. discouraging event is due to the decline in the expected reward to market hours because of difficulty finding an acceptable job. as economic conditions thus improve, previously discouraged workers may renew their job search and enter the LF. both of these effects operate at the same time for different households. the net effect of economic conditions on LFP rates depends on whether the discouraged or added worker effect predominates in the aggregate. discouraged worker effect is dominant LF tends to shrink or grow less rapidly in recessions and expand or grown more rapidly during upturns.

economic models

frameworks that explain human behavior examine the effects of changes in a single variable, such as price or income, while assuming that all else remains the same.

evolutionary psychology explanation

gender differences due to the environment of early humans; traits that contributed to survival passed on. these preferences contributed to survival- women needed men who could provide for them and their children, women with such preferences survived. men needed women who would bear and rear their children. sought out attributes that signaled that capability, like physical attractiveness. men who did this survived.

above

gender differences in occupations and industries. men are more heavily represented in blue collar jobs and in durable manufacturing which are sectors with ______ average layoff and employment rates. women are more likely to be employed in white collar jobs, which experience lower layoff and unemployment rates. women are also disproportionately represented in service occupations, which have above average unemployment rates. the gender differences in occupations and industries appear to lower the female unemployment rate relative to the male rate, the fact that blue collar and durable goods manufacturing industries are subject to greater cyclical variation in employment tends to particularly increase men's unemployment during recessions.

less, greater

gender differences in time spent on housework start long before young men and women first head their own households. allocation of housework between married spouses and cohabiting men and women - men spend _____ time on housework then women but cohabiting men spend a ____ share of their time than married men. less specialization between gay and lesbian couples. these patterns prevail because same sex and cohabiting opposite sex couples have far fewer legal protections than married couples, making investments in homemaking and relationship specific capital is particularly costly to them in the event the couple breaks up

evolutionary psychology, socio-biology

give a larger role to biology, through natural selection, behavioral traits and preferences passed on

public good

has the unique characteristic that the consumption or enjoyment of the item by one person does not diminish the consumption or enjoyment of the same item by others. within the family, many goods are likely to have this characteristic. enjoyment of these goods by one partner may even enhance that of the other. the gains from joint consumption are increased because two individuals derive more total satisfaction from sharing a given stock of public goods and services by living together than they would by living separately..

Loving v. Virginia 1967

in 1958, interracial marriage was illegal in 24 states Richard and Mildred Loving- couple in the unanimous supreme court decision 1967 that ended all race based legal restrictions on marriage in the United States In 1958, Mildred Jeter (of African and Native American descent) and Richard Loving (a white man), natives of Virginia, married in Washington DC because interracial marriage was illegal in VA. On July 11, 1958, a Virginia county sheriff and two deputies entered the Lovings' bedroom at 2 a.m. and arrested them for violating the Racial Integrity Act, which banned interracial marriage. Sentenced to one year in prison; verdict was suspended on the condition that the Lovings leave the state Moved to DC but missed their family and friends; did not believe the law was fair. They became the plaintiffs in the landmark Supreme Court case Loving v. Virginia, 1967

attachment manufacturing service young

prior to the 1980's, the net result of these opposing forces was that women's unemployment rates were higher than men's. since the early 1980's, the bak;once has shifted and men's and women's unemployment rates have been about the same, except in recessions. factors that contributed to this convergence in male and female unemployment rates included rising labor force ______ of women, decreasing demand for ____ workers and increasing demand for work _____ due to structural changes in the economy and a declining number of _____ people competing with women for entry level jobs as the baby boom cohort entered the hob.

substitution in production larger

in many instances, the same commodity can be produced using a relatively time intensive technique or a relatively goods intensive technique. substitution in production involves choosing among various ways of producing the same commodity so as to substitute goods intensive production techniques for time intensive ones or time intensive production techniques for goods intensive ones. when such substitutes are made along a given indifference curve, the implication is that the individual is indifferent between the two alternatives over time, she will substitute goods intensive commodities for time intensive commodities in consumption. and goods intensive for time intensive production techniques. as you continue to do so, you will exhaust many of the obvious possibility, it will take _____ increments of market goods to induce her to part with her scarcer non market time. this explains why indifference curves are believed to get steeper as we move from left to right. steepness of the indifference curve is influenced by how easy or difficult it is for them to substitute market goods for non market time while remaining well off. the ease of difficulty will depend on their opportunity for substituting one for the other in consumption or production or both.

market

in the ____, goods and services are sold. government is itself a major buyer and seller of goods and services and is also an agent that regulates and otherwise influences the economy. women play the dominant role in the non market sector.

budget constraint indifference curves

in the model, both market goods and non market time are used in the production of the commodities from which the individuals derives satisfaction. the goal of the individual is to select his or her utility maximizing combination of market goods and non market time. because market goods are purchased with income earned through market work, and all time available is spent either on market work, this choice of the utility maximizing combination of the market goods and non market time is the basis of the labor supply decision. the individual must take into account the options that are open to him or her, given the _____ _____ and his or her preferences expressed in the set of ______ ___________

employed

includes all those who worked one hour per week or more as paid employees or were self employed in their own business or profession or on their own farm. ______ ____ <35 hours per week _____ ____ > 35 hours per week it also includes all of those temporarily absent from paid employment because of bad weather, vacation, family leave, labor management disputes, or personal reasons, whether or not they were paid. those who worked at least 15 hours unpaid workers in an enterprise operated by a family member are also included

family in the 21st century

increase in dual earner couples declining significance of marriage declining marriage rates increase in cohabitation- same sex and opposite sex increase in female headed families increase in out of wedlock births increase in single person households living arrangements of children - 58% two biological married parents 10% blended two parent family mostly married 27% one parent increasing racial and ethnic diversity immigration, increase in interracial and interethnic marriages increasing recognition of same sex marriages

convex

indifference curves are generally assumed to be _____ to the origin. they become flatter as we move from left to right and steeper as we move from right to left. this is because it is believed that individuals generally value additional units of relatively scarce commodities more highly than additional units of relatively more plentiful ones. assume she does not derive satisfaction directly from market goods and non market time. rather, she values them in so far as they can be used to produce commodities. 2 type of substitution are involved.

full time year round worker

individual employed 35+ hours per week, 50+ weeks per year.

shared

individuals tend to derive greater utility from doing activities with others who have a ____ interest, rather than doing these activities alone or with someone who has less interest. gains are likely greater for dual earner couples, who tend to pair up on the basis of more similar interests, rather than single earner couples who pair up on the basis of the gains to specialization and exchange.

substitution in consumption

involves choosing among commodities so as to substitute goods intensive commodities for time intensive ones or time intensive commodities for goods intensive ones. when such substitutions are made along a given indifference curve, the implication is that the individual is indifferent between the alternatives.

sex gender x 2

is generally used to refer to biological and social differences between male and female and the term _____ is used to encompass the distinctions society has erected on this biological base. _____= social or cultural constraint, including distinctions in roles and behaviors, mental and emotional characteristics. race and ethnicity are different statistics. 'black and hispanic' it is more common to identify as more than one race of ethnicity.

biology, society

it is possible that both _____ and _____ play a role. it is important not to exaggerate the extent of gender differences and their consequences. also, avoid labeling of female traits as inferior. looking at history, there have been considerable changes in gender roles and the status of women, and further changes may be expected.

mancession

the gender gap in the unemployment rate remains sensitive to cyclical swings in the business cycle, with male unemployment rates rising relative to female rates during recessions. and, during the more recent recessions, since the 1980's, but the male rate actually rose above the female rate. ____________ - gender gaps in unemployment during the great recession. similar to patterns since 1980, also in line with previous recessions as the economic recovery continued gender parity in unemployment rates tend to reassert itself. by january 2012, the male and female unemployment rates were the same.

children

larger negative effects for younger children. among women with children, being a child with a disability reduces a woman's labor supply compared to other mothers. women who are more committed to the labor market or who have more attractive labor market opportunities may choose to have fewer children. negative effect of ___ on LFPR in early years in strongly negatively associated with women's LFPR, decreased over last 50 years- appreciation rates have also increased dramatically for women with older children. raising LFPR of mothers represents an increased of the attachment of women to the labor force over the life cycle. the difference in labor force participation rates by marital status are also considerably smaller today than they were 50 years ago. married women's LFPR in each presence of children category are considerably close to these of ever married women in 2011 then they were in 1960.

demographic trends increasing female LFP

long run decline in the birthrate. the longer the women at hoe, the more likely her skills are to depreciate and the greater the probability she is to remain out permanently. Divorce rate increases and influences women's LFP rates. they have considerable less NL income than married women and are thus more likely to participate in the lF. as women, married become more aware of rising divorce rates, their LFP raises as a means of safeguarding their standard of living in case of a marital break up. two earner couple can more readily arrow to get divorced. woman can count on her own income rather than being completely dependent on the uncertain support of an ex husband. man is less likely to need to spend his own resources to fully support his ex wife.

gender identity

many factors are changing but traditional division of labor by gender has a lot of staying power. the role of culture- shared knowledge and beliefs. interesting new research on the role of gender identity. Akerlof and Kranton draw on sociology and social psychology to define identity as a sense of belonging to a social category, combined with a view about how people in that category should behave.

risk pooling

marriage couples have the advantage that if one of the spouses becomes unemployed, they may be able to rely on the earning power of the other partner to cover at least part of their family's expenses. in bad economic times, if the husband loses his job or his earnings decline, even a traditional home maker may enter the labor market to maintain family income. risk pooling effect is larger for two earner coppices. have much greater flexibility to switch jobs, change careers or pursue additional education or job training because they can rely on the other spouses' earning power.

defense of marriage act (DOMA)

marriage is the legal union between one man and one woman says other states do not need to provide recognition of same sex marriage

elasticity wage elasticity income elasticity

married women- labor supply is most likely to be in family context. _________- magnitude of responsiveness ____ ______- measures the responsiveness of an individual's labor supply to a change in his or her own wage. ______ ______- measures the responsiveness of an individual's individual labor supply to a change in his or her non labor income. biggest source of NL income for married couples is the spouse's income. women's labor supply is more responsive to changes in their husband's wages than vice versa. likely related to the traditional division of labor in the family. women may be seen as substituting among market work, home production and leisure while men only market work and leisure. because purchased goods and services are in many cases useful substitutes for non market time in producing the commodities, the family wants, women have closer substitutes for time spent in market work than men do. thus, changes in market wages are expected to have a larger substitution effect on women's labor supply, yielding a larger wage elasticity for them than men.

non-market time

measured from left to right along the horizontal axis. 16 hours in a day available to allocate between market and non market activities, 8 hours for sleeping market time is measured right to left along the horizontal axis

gross domestic product

measures the total value of goods and services produced within a nation divided by the population (shown along the horizontal axis and used as a proxy for economic development)

fallen, changed, substitutes

mid 1960s-2010- married women's housework time fell substantially relative to their husbands. women also increased their market hours considerably over that period. this is a result of the rise in the proportion of married women in the labor force, but also an increase in hours of paid work among employed wives. the difference in allocation of time to market work and non market work between wives and husbands narrowed. average family size has _____ , norms regarding cleanliness have ______, technology changes and increasing availability of ______ for household production many goods and services that were previously produced at home are now often purchased. many people hire firms or individuals to come to their houses to do regular household tasks. family income matters especially the wife's earnings, in determining whether a family purchases these types of substitutes. rise in real wages for women, which increases the opportunity cost of time spent in household activities. as women allocate more time to market work, they accumulate more labor market experiences further increasing the wages and resulting in further decreases in their housework time. some re-allocation of tasks between husbands and wives, husbands increase their time in childcare which is not counted as housework. in 2000, although non employed wives continued to do more housework then employed wives, the time they spent on it decrease somewhat more than for employed wives. during this period, time spent on housework increased not only for husbands with employed wives but also husbands whose wives were not employed. women's rising earning potential may have altered the balance of bargaining power in the household. whether or not the wife was actually employed and the wives used their increased bargaining power to obtain some reallocation of housework. longheld gender expectations of women's and men's proper roles continue to hold some sway in determine the allocation of time to housework.

economic theory

model = a simplification of theory that links cause and effect simplified to highlight causal relationships ceteris parabus (all else equal) scarcity- economics is the study of decision making under scarcity opportunity cost- including time efficiency- getting the most out of resources/inputs, has allocative dimension equity- distribution of income market failure rationality and utility maximization use empirical evidence to test theory- sign and magnitude

increased

more women are expected to find that the wage offered to them exceeds the value of their non market time and hence choose to enter the labor force. this process doesn't require that women's wages increase relative to men's wages. since 1970, men's real wages were stagnant or decline while women's real wages _______ after 1980. gender pay gap narrows.

immigrants family

mothers own caregiving time, including the cost of housekeeping and child care service and proximity of family who can potentially help out. low skilled _______ tend to provide in hours care more inexpensively and offer more flexible hours as compared to native homemakers. higher concentration of low skilled immigration in a city cause the labor supply of high wage high skilled women to increase. these women decreased the time spent on household work and increased their expenditures on housekeeping services, suggesting they employed substitutes for their time in those activities to facilities their increased labor supply. nearby _____ increases the availability of regularly scheduled child care during work hours but may be put with irregular or unanticipated child care. having a mother or mother in law nearby was indeed associated with significantly higher LFP of these mothers of young children.

U

motivation- correlation between the role of production and women's status in society research finds a ____- shaped relationship between economic development and labor force participation of women women's LFPR starts relatively high at lower levels of economic development where women at a large role in production. it then declines reaching a low point with early industrialization. with further industrialization, women's participation increases are more women are drawn into the labor market. U- a positive economic relationship between economic development and women's status. during the early stages of development, the high point of the u, the family tends to be the locus of production, and women are heavily involved in production (family farms, family businesses, work for market within home) with early development, declining portion of the U, locus of production shifts out of the home, men follow into commercial farms, factories and offices, women do not. the higher income associated with economic development causes an income effect that reduces the female participation. Also, as Goldin says, societal norms stigmatized manual wage labor for married women outside the home in agriculture and manufacturing. it was unpleasant dirty work and signified that the husband was an inadequate breadwinner. with further development, and increased education of women, higher wage, white collar opportunities open up for women. there is a substitution effect. golden says there is less social stigma about women taking these jobs.

black box transaction costs bargaining

neoclassical model ignores the decision making structure of the family. the model simply assumes that the family operates efficiently and without friction either because of a consensus on preferences within the family or because decisions are made by an altruistic family, husband accepted by all other members. in this view of the family, power is irrelevant. transaction costs and bargaining approaches endeavor to unlock the "____ _____" of the family and look more deeply into how families are organized and make decisions. focus on the role of institutions in structuring complex, long term relationships so as to minimize _____ _____ A marriage fosters a long term relationship between partners. Marriage incorporates roles both about the nature of an ongoing relationship and about the rights of each individual should the union break up. hence, marriage might be seen as a contractual affiliation that is flexible enough to allow adaptive sequential decision making in the face of unfolding event. marriage as an implicit contract provides incentives for couples to make substantial marriage specific investments. couples are likely to invest more time and effort in activities that produce commodities more highly valued within the marriage than outside the marriage. they will be willing to devote more time and effort to raising their children. children are likely to particularly valued by their own parents. they may not be valued by another person and may even be a liability in their parents each for a new spouse. This is particularly a problem for women since they generally retain custody of the children in a marriage breakup. women are more likely to make such marriage specific investments, which put them at a greater disadvantage if the marriage should end. because marriage is intended to be a long term relationship, it is not realistic to specify everything in advance. that is, to provide for all possible contingencies. it is also quite unlikely that husbands and wives have the same preferences regarding all consumption and production decisions. thus, _____ between the partners is likely to be very important.

substitutes

net effect was to decrease the value of non market time, did decline relative to market time, thus causing the proportion of women working for pay to increase. increase in the availability of market ______- goods and services previously produced in the home that become increasingly available at the market for purchase. important technological innovations eased the burden of housework. household appliances, housework easier and less time consuming. advances in medical technology, more effective contraceptive techniques, reduced educational and LF disruptions caused by children bearing and child rearing. value of women's non market time decreased. flatter indifference curves. caused women's LFPR to increase. women's rising LFP tended to increase the demand for market goods and services that substitute for their time in the home or make housework tasks easier.

externalities x 2

occur when the consumption of a good or service by one of the partners affects the well being of one of the others who do not consume it . when these are positive- one person derives enjoyment from the other's consumption, gains will be greater than these indicated by the simple model. can be negative too. ________ are an important gain to marriage

technological change

once women were more inclined to work for pay, they sought more schooling and also more market oriented fields of specialization. the statistics for higher education reflect the fact that, traditionally, more young men and women completed college and graduate study. gender differential began to decline in the 1960's. since 1980, young women are more likely to graduate college than young men. demand for workers in traditionally female clerical jobs increased and cause their wages to be higher than they otherwise would have known. anti discrimination legislation has increased. the demand for women in traditionally male jobs since passage in mid 1960's, the reward to labor market experience rose during the later part of the 20th as well as the demand for skill given further increased women's incentives to remain attached to the labor market. female as well as male workers benefitted from increases in labor productivity due to growth overtime in capital stock and ________ __________ which exerted upward pressure on wages, all else equal.

skill

one particularly notable trend is that the full time work week decline from 55 to 60 hours at the time of the 20th century to about 40 hours in the 1940s and remains at that level today. the average number of hours worked per week has shown considerable stability for both male and female workers. The lower average numbers of work per week for women reflects their continued greater likelihood of working part time than men. year round, full time women work on average less than men. trends in annual work hours are more difficult to measure then trends in LFP because they may have been influenced by workers difficulty in obtaining a job, decisions to work part time or part year, and non paid vacation is counted. trends in work hours have diverged by ____ level for both men and women. with a rising trend for more highly skilled workers and a decline trend for less skilled workers. this increase in work hours for some individuals combined with the fact that many americans are single parents or are members of a dual earner family leaders to more families facing a growing time square.

income married

one way of determining whether husband's and wive's preferences differ significantly is to see if they spend their ______ in the same way. a good deal of research shows that they generally do not. who controls family resources affects a wide array of outcomes beyond consumption expenditures, including how each spouse allocated his or her time as well as decisions regarding charitable giving. women who have greater economic resources are less likely to experience domestic violence. mother generally allocate more resources and place greater emphasis on children's well being than do fathers. the government has the potential to promote certain outcomes, to the extent that its policies and laws affect the distribution of resources between men and women both inside and outside the marriage. also, through laws that govern the distribution of marital assets in case of divorce. universal divorce laws reduce domestic violence by increasing women's bargaining power. changes in women's bargaining power effect decisions as to whether to get _____ and to whom.

tastes- increases in women's LFP

over time, the development of many desirable market products that could not be produced in the home likely increased people's preferences for market produced goods and reduced the relative value placed on non market time. measures from farm to city reduced the opportunity for household production and increased the convenience of market purchases as well as access to market work. leisure activities charged from these that mainly require time to these that require substantial expenditures. gender roles consistently becoming more egalitarian, changes in social attitudes and tastes. far more difficult more women to enter the labor force in the past when it was the exception and not the rule. shifting cultural norms, encouraged by example working in market, women place a higher value on independence and autonomy that their own earnings bring. many women value success in much the same way as male counterparts. also, generally takes two paychecks to help keep pace today.

social structural theory

preference patterns are based on traditional gender roles (men are breadwinners and thus their earnings capabilities are important to potential mates. women valued for prowess at household production and may exchange that to obtain a high earning partner. observed gender preferences for mates may thus reflect the realities of men's and women's circumstances in earlier times. even today, many significant differences between men and women remain that could plausibly reinforce these preferences. women have lower LFPR, lower paying occupations, earn less than their partners. provides an incentive for women to value earnings, capability in a potential partner more than men do. to the extent that gender roles are changing, the preferences of men and women may continue to reflect the gender roles of an earlier period, if preferences and attitudes are handed down to later generations through cultural transmission. social structure due to culture has staying power but as women continue to enter the traditionally male occupations and increase their earning power and as men engage in more caregiving responsibilities, the desired traits in a male will eventually change. marriage may increasingly occur as a result of gains from shared consumption between the members of a couple rather than on the basis of gains from specialization in household production and market work. placing too much emphasis on a biological explanation results in a tendency to overemphasize the differences between men and women rather than recognizing their many similarities and diversities within each group.

civil union

provides same sex couples the same set of state rights as married couples with the label of marriage

labor force attachment negatively positively

rising female LFPR have been associated with an increase in _____ ______ ______ or the continuity of employment of women over the life cycle. one indicator of labor force attachment is the extent of women's employment over the course of the year. share of women who remain attached to the labor force over a year period has increased considerably. work experience is an important determinant of market earnings. the lesser amount of work experience in women compared to men has traditionally been cited as an important reason for their lower earnings. not immediately obvious whether the increases in women's LFPR that occurred in the post WW11 period would be associated with increase or decrease in the average amount of experience of the female labor force. the size of the LF is increased by entries into the labor force and decreased by exits from the LF. both increased in the flows of entrants and decreasing flows of exits contribute to the growth of the female labor force. on one hand, a growing number of new entrants, with little or no work experience, ______ affects the average labor market experience of women workers. on the other hand, the growing tendency for women to remain in the labor force more continuously has a ______ effect. between 1960-1990, rising female LFPR were associated with a slight decrease in the average levels of work experience among women workers, but since then notable growth in women's average work experience have occurred.

market cost approach specialist

sets the value of non market production equal to the cost of hiring someone to do it. first determine how much time is spend on each specific activity and then use the wages of specialists to estimate the value of non market time. __________ method- unlikely that a typical home market can perform all these skills as completely as a specialist. adjustments for quality difference.s a simple alternative is to value unpaid housework at the wage of a housekeeper. this alternative fails to capture the value of personal and emotional value in much non market work, thus yielding values that are too low. some argue that exclusion of unpaid work, in GDP, brands it as "unproductive." assigning a money value to housework could improve women's status because it would increase recognition for activities of women in the home and validate their economic contributions. others dispute this counterargument and believe that the inclusion of housework in the GDP would not fundamentally effect the status of women because it would neither make housewives economically independent nor raise the wages of women who perform the services for pay.

opportunity cost approach.

sets the value of unpaid work equal to the income the person could earn in the labor market. invidious;ls who participate in the labor force equate the value of an hour of non-market time to the market wage rate. for individuals who do not participate in the labor market, the value of non-market time must be at least as great as their potential market wage. there is the nontrivial problem of estimating potential market earnings for those who are out of the labor force. also, although the market wage is known for those who are employed, the presumption is that is accurately represents the value of non market time. many workers do not have the option of working as long as they wish but must work a specified number of hours or forgo an otherwise desirable hob. hence, they may not be able to divide their time so that the value of the last hour spent at home is exactly equal to their wage rate. this results in a higher value being placed on non market production of those whose market production is higher.

budget constraint non-labor income

shows the various combinations of non market time and market goods from which one can choose, given the market wage rate and the non labor income available. the wage (w) is the amount of money an individual earns each hour she or he works. (hourly rate of pay) _____-______ _____ is any income an individual receives, apart from his or her own market earnings.. the amount of non labor income is unrelated to the amount of time the individual devotes to the labor market. can include earnings of a spouse, income received from interest, dividend, or rental property government transfer payments, such as welfare or unemployment insurance, may also be considered non labor income.

great recession older individuals

since the 1960's, notable decreases have also occurred in the LFPR of men in prime working ages. this trend accelerated over the recent recession. this trend accelerate over the recent recession when sizable participation decline occurred for this age group. nonetheless, PR for men in prime working ages remain, relatively high. participation rates for young individuals, under 20, are fairly similar for women and men. Declining over the long term for men and since 1980 for women. both experienced a sharp drop during the _____ ____. ______ ________- reversal of the decline of the participation rate of older men 55+. after decreasing throughout post WW2 period, increase started in early 1990s, continued even during the Great Recession. Participation rates of older women increased over the recession as well.

supply curve

slopes upward and to the right. it rewards for one type of job increase while those for all others remain the same, additional workers will be attracted from related occupations. equilibrium- intersection of supply and demand, when all persons willing to work at the going wage rate are able to find employment and all employers willing to hire someone at the going wage rate are able to find workers. quantity of labor supplied and demanded are equal, no forces causing wage to move from its present level as long as no external shocks take place if external shocks do occur, they may cause shifts in demand, supply or both, leading to a new equilibrium

goods intensive time intensive

some commodities are ___ _____ to produce. they are produced using a relatively large amount of market goods and relatively little non market time. some commodities are _____ ______, they are produced using greater amounts of non market time and relatively fewer inputs of market goods.

indifference curves

we can incorporate the family context of decision making into the budget constraint by including the income of other family members as part of the individual's non labor income. preference among family members may differ. focus on individual rather than family references. we expect that the individual's preferences are made in the context of the family and that the preferences of other family members are taken into account in decision making. these and other points, which all represent equal satisfaction, can all be connected by one indifference curve. you are indifferent about being at various parts on the curve. thus, each indifference curve indicates the various combinations of market goods and non market time that would provide you with the same utility or satisfaction.

tax Earned income tax credit

some money received needs to be paid out in taxes. value of home production is not taxed so LFP among married women is discouraged. _____ system is progressive, additional increments of income are taxed at higher rates. tax rates applied to family not individual members. married women face a relatively high tax rate on the first dollar of their labor market earnings since it is "added on" to their husbands earnings in calculating the taxes. the higher the tax rate, the more likely a women is to decide not to participate in the LP. ________ _____ ______ ______- targets slow earning families with children and subsidizes their earnings through a refundable tax credit. amount of EITC increased with additional hours worked. It is a wage subsidy. it raises the wage rate and the probability of participation in the lF. found to promote employment among low earning single mothers. it is gradually phased out as total family earnings rise. at higher levels of husbands income, the decrease in the EITC with additional hours worked is like a decrease in the wage of a secondary worker contemplating labor force entry. employment of women will be discouraged. on net, the EITC modestly discourages LFP by women in low earning families, decreasing their participation by about 1 percentage point. given the EITC's considerable net positive effect on LFPR of single mothers, the policy on net promotes women's LFP

divorce, separation, death

specialization as an arrangement will leave them less prepared to deal with unforeseen developments than if they had each spent time in both the market and household production. if each partner participates in household and market activities, they will better be able to manage alone in the event of ____, ____ and ____. complete specialization poses a particular risk for full time homemakers, most notably in the event that the relationship ends. in such a case, the homemaker may have market skills that have substantially depreciated or become obsolete.

abusive

specialization will tend to limit opportunities for women to get out of an abusive relationship. women who are not employed outside the home are less likely to have the financial means to leave an ___ relationship or to effectively persuade their husband that they will leave the marriage if the abuse does not stop. changes in women's economic status are related to reduced domestic violence. consequences of domestic violence are likely varying, depending on the length and severity of the issue, may include both physiological difficulties and physical injuries. LFPR of women who are victims of domestic violence are the same or even higher than those of otherwise similar women who are not victims. this finding could be because women seek employment outside the home as a refugee or as a means of achieving economic independence. some evidence indicates that abuse negatively affects women's job performance and consequently may lower their wages.

institutional advantages

spouses' health insurance, pension rights, SS benefits same even to gays/lesbians.

fertility transition child quality

steady decline in fertility beginning in 1800, decrease in fertility that accompanied industrialization. children are regarded as commodities from which individuals derived utility or satisfaction and the need for children depends on prices and the level of family income. with industrialization, and urbanization, children had fewer opportunities to make an economic contribution to the family than on farm or early manufacturing establishments. this increased the costs of children and contributed to a reduction in fertility as did the housing costs in cities which further reduced incentives to have large families. family incomes rose, economists believe that higher incomes increase the demand of parents for ______ ______ investments in children, leading them to invest more in the education and health of each of their children rather than have a larger number of children. free public education- around 1850, lowered the costs of investing in child quality. 7 CHILDREN WAS AVERAGE IN 1800. 5.5 IN END OF 1800'S. 3 EVENTUALLY.

speed dating experiment

subjects could accept or reject each partner and also rated each partner on a number of attributes. women put greater emphasis on intelligence, while men put greater emphasis on physical attractiveness. data from online dating services- users provided personal info and a photo, researchers used this data and info on users browsing behavior and decisions to initiate first contact with a mate women had a stronger preference than men for income relative to physical attractiveness

derived demand

supply and demand for labor determine both the jobs that will be available and how much workers will be paid for doing them. demand is essentially determined by the behavior of employees who are in turn influenced by the business climate in which they operate. goal is to maximize profits and the demand for labor is related to its productivity in making the goods or services sold by the firm. demand for labor is ____ from the demand of consumers for its final product. ______ side explanation emphasizes the role of gender differences in preferences and human capital investment, while demand side explanations focus chiefly on labor market discrimination. labor market discrimination can indirectly lower women's earnings and occupational attainment by reducing their incentives and opportunities to acquire education and training.

why women's labor force participation increased

supply side- shrinking household sphere, fertility decline, technological change and market availability. increasing educational attainment for women, public school movement, around 1900, girls outnumbered boys as high school graduates. demand side- emergence and growth of the clerical sector, growth in opportunities for women. also there was a reduction in the stigma of married women working (indoor, clean work)

income effect labor force participation home

value of non market time is influenced by tastes and preferences also by demands placed on an individual's non market time. factors that increase housework and caregiving responsibilities particularly influence women's participation decisions. another factor that influences that value placed on non market time is the availability of income from sources other than the individual's own work efforts. at a higher income level, consumption possibilities increase and you are able to reach higher indifference curve. ________ _________- when individuals income goes up, they demand more of all commodities from which they derive utility. to the extent that non market time is used to produce those commodities, an increase in income will increase the value of non market time result in less time spent in the labor market. the income effect will be relatively large when the demand for time intensive commodities increases sharply with income. the individual then needs to transfer more time from market to non market activities in order to produce them. this shift is likely to occur when market goods are not considered to be good substitutes for home produced items. an increase in non labor income may induce some women to exit the labor force, and thus, an increase in non labor income lowers the probability of ______ _______ _______. marital status reflects in part the availability of level of attendance/ alternative sources of income. thus, we see that, within children's age categories, women who are married with spouse present are generally less likely to work outside the home than other ever-married women (divorced, widowed, separated.) Women's LFPR is negatively correlated with their husband's income, all else equal. recall that we expect an increase in the wife's NL income to raise the value of her non market time (w*). married women's LFPR are only a bit lower the those of never married women in 2011. never married mothers tend to be a less educated group and their lower education tends to depress their participation rates. married mothers have higher LFPR than never married mothers in 1980s and 1990s. presence of small children greatly negatively effects women's LFPR because small children greatly increase the value of time spent a _____

independence

tastes and behaviors are undoubtedly influenced by social attitudes and norms. attitudes follow behavior to some extent. women may value earning their own income for the economic __________ it brings and to enhance their relative power position in the family. an increasing number of women value career success in much the same way as their male counterparts do, which affects the shape of their indifference curves. family background also influences tastes. mothers less tradition attitudes are not only positively associated with their daughters LFP decision but also in fact of their daughter in law. son may be more favorably disposed to his wife working or perhaps more willing to share housework duties, thus facilitating the wife's employment. women coming from countries with relatively higher female LFPR have higher supply in the US then women coming from countries with lower female LFPR. even though both groups assimilate toward the native born women's supply patterns as they spend more time in the US, gap in their labor supply tends to persist. the labor supply behaviors of the U.S. born daughters of immigrants has been found to be positively associated with both female participation rates in their parens country or origin and the participation patterns of immigrants of these origin countries in their parents generation. there is considerable assimilation of second generation to native born parents.

unemployment rate

the # of individuals who are classified as unemployed divided by the size of the relevant labor force. being in the labor force is not synonymous with working. individuals who work for fewer than 15 hours a week as unpaid family workers and those who do only unpaid work in the household or as volunteer workers- no matter how many hours- are excluded. emphasis in the official definition of the labor force on being employed in or actively seeking market work. because women have tended to have primary responsibility for non market work, they constitute a higher proportion of the categories that are left out. their share in the labor force understates their share of work. this was particularly true in earlier days when family enterprise were more common and when most women were homemakers. the unemployment rate is an incomplete tool for fully assessing ether economic hardship for workers or the loss of output for the economy. measure unemployment rate fail to include individuals who would like a job but did not look for work during past 4 weeks. instead, they are amongst those classified as out of the labor force. BLS also provides supplemental data on alternative measures of labor market difficulty and underutilization that are broader than the official unemployment rate and include some individuals who are otherwise classified as out of the labor force.

household

the _______ sphere as shrinking as family size declined and as market substitutes, technological advancements and household appliances made housework easier and potentially less time consuming. growing availability of public schooling, dramatic increase in secondary and elementary schooling for boys and girls. 1900s- girls outnumbered boys as high school grads. second, increased demand for clerical workers created new labor market opportunities for those female HS grads. paid higher wages and did not have stigma of manufacturing employment.

income effect

the change in wive's labor supply associated with a change in family income, all else equal.

Opportunity cost

the cost of owning more of one good is forgoing the opportunity of having another, the value of the next best alternative. how to allocate scare resources so as to maximize well-being

increased declined

the economic well being of women and their families is significantly influenced by women's participation in the labor force and their earnings levels, given participation rising incidence of female headed families and growing dependance of married couple families on the contributions of female headed families. in married couple families, women's participation in the labor force and their level of earnings while employed affect their bargaining power and distribution of resources within marriage. changes in participation roles are of importance for women's wages as they influence the average levels of labor market experience of women. while female participation rates have ______ over the long term, male rates have _____. men and women's LFP and their patterns of involvement in market work over the life cycle are becoming increasingly similar. Great Recession- Dec 2007- June 2009- most severe downturn the US had experienced since the GD and was followed by a prolonged period of high unemployment and a lower labor force participation.

Federal Defense of Marriage Act (DOMA)

the federal government defines marriage as a legal union between one man and one woman. no U.S. state may be required to recognize as a marriage a same-sex relationship considered a marriage in another state. codifies the non-recognition of same-sex marriage for all federal purposes, which include family insurance benefits for employees of the government, survivors' benefits from Social Security, and joint tax filings In Windsor decision Supreme Court (5-4) struck down DOMA (June 2013) Rationale: federalism—government must treat state decisions with respect But language emphasized the dignity of same-sex relationships and the harm gay families suffered from same-sex marriage bans—lower courts focused on this part of the decision Following SC ruling in DOMA, a number of federal appeals courts issued rulings allowing same sex marriage SC refused to hear appeals from these rulings Other state and federal appeals court rulings allowing same-sex marriage followed Number of states allowing same sex marriage increased from 19 to 36 But, in November 2014, a federal appeals court upheld same sex marriage in 4 states This created a conflict among the federal appeals courts

specialize educational experience discrimination decreased

the goal of the family is to maximize utility or satisfaction. thus, the value attached to various commodities and the time allocation actually chosen by each couple depends on their preferences for market vs. home produced goods. each couple will seek to produce their desired combination of market and home goods in the most efficient way. as long as they produce some of each type of goods, if the wife has a comparative advantage in housework, relative to the husband, and the husband has a comparative advantage in market work, they will choose to _____ each may help the other if demand is high for production he or she is not particularly qualified for, but each has a clearly defined sphere of primary responsibility. assuming that the partners have different comparative advantages whenever such specialization does not take place, the couple will fail the maximize their output and potentially their well being. the traditional family has become much less common in recent years, as families in which both the husband and the wife work in the labor market have become the norm. within the context of the model, this sift may be traced in part to trends that narrow differences in women's and men's comparative advantage. women's _____ attainment and labor market ____ have substantially increased and it is likely that the extent of labor market ____ against women has decreased. as a result, women's wages have increased. the relative value of non market time has ____ with the rapid adoption of appliances and increased consumption of market substitutes for home produced goods. Also, more out of home child care is available than in the past, through issues of access, affordability and quality remain.

absolute advantage

the individual can produce more total output of a good in one given period when each individual has an absolute advantage in one activity: if they collaborate, each spouse has the option of specializing to a greater extent in the activity at which he or she is relatively better at and then exchanging or pooling their output. one individual has an absolute advantage in both activities: specialization can also raise the income of a couple when one individual has an absolute advantage, both in the labor market and in home production. You need to look at comparative advantage. through comparative advantage and exchange, the couple can increase their total output of both market goods and home goods and raise their total income.

full schedule

the nature or quality of time parents spend with children varied depending on what else is going on and who else is around. during some of the time parents spend with children, they are directly engaged with them. at other times, care consists of supervising the child while engaged in another primary activity. but, value may be derived from being a parent in close proximity, even when he or she primarily focuses on other activities. non employed mothers spend more time with their children than employed mother do. but the difference is not extreme. why the difference between employed and non employed mothers in time spent with children is relatively modest is because.... a considerable fraction of employed women work less than _____time or full year. even women who are employed full time may be able to juggle their ________to spend time with their children. time spent in child care by mothers who are employed full time is close to all employed mothers school age children spend a good part of their day in school, reducing the amount of time for mothers and children to be together even when the mother is not employed. employed mothers also take time from their own leisure or sleep to spend time with children. all of these factors reduce the differences in the amount of primary time that employed mothers spent with their children as compared to their non employed counterparts. THIS IS IN TERMS OF PRIMARY TIME

indentured servants

the poorest women were often ____ _____ and were not permitted to marry during their years of servitude. African american women and men were slaves- they had to work very hard with no claim on their fruits of their labor or indeed any other legal rights and could have their family entirely disrupted by the owners choice to sell a family member.

comparative advantage

the simply model suggests that specialization and exchange is the economic foundation of marriage. the simple model suggests only one type of home good and a value associated with production of this activity. the tasks typically performed within the household are quite varied. it is unlikely that the wife will have a _______ ________ in performing all of these tasks as compared to the husband. it is likely he will have a comparative advantage in performing at least some of them even taking his often larger market earnings into account. once the wife is at home because she is better at some or many of the household tasks, it may be more efficient for her to do other related work as well. it is worthwhile to consider the utility or disutility that people derive from work itself. the simple model considers only the utility derived from the consumption of market produced and home produced goods. but, most people spend much of their time working, and their well-being is influenced by the satisfaction or dissatisfaction directly associated with their work. If everyone always enjoyed more or disliked less the kind of work they do more efficiently, the gains from specialization would be even greater than those indicated by the simple model. This kind of reasoning ignores the possibility that how we feel about doing particular tasks depends on how much time we have to spend on them. People who dislike a particular type of work to begin with are likely to increasingly hate this activity as they do more of it. even those individuals who like what they do are nonetheless, likely to become less enthusiastic. the stronger this effect, the less likely are the gains in utility from complete specialization suggested by the simple model.

marriage marriage bans low educational WWII married

there was a presence of ____ bans in teaching and clerical work. there was also a lack of part time opportunities. ______ ____- prohibited the employment of married women, late 1800' and were prevalent in teaching and clerical work. barrier to employment in heavily female fields. marriage bars expanded during GD in 1930s and not fully abandoned until 1950. another obstacle to married women's employment outside the home was the lack of availability of part time work at a time when women's household responsibilities were still quite demanding. 1940's- shortage of young single women they had traditionally employed in clerical and teaching jobs, thereby providing an incentive to permit married women into these occupations. the shortage was due to 3 developments: birth rates were ___ in the 1920's and 1930's, small cohorts of women in the younger age group, traditionally favored for the jobs in the 1940's and 1950's. 2. rising ______ attainment for women meant that an increasing share of the young women who would otherwise have been available for employment were pursuing their schooling. 3. post _____ baby boom- women were marring younger and having larger families , further diminishing the availability of single women in the age group discarding marriage bans and offering more options for part time employment. 1940- LFPR of women increases were driven by a sharp increase in the participation of ______ women. 1940- 28%, 1990- 60% Shrinkage of household sphere increases in women's education and growth in demand for clerical workers.

labor force participation

this is on the vertical axis, share of the female population that is economically active, includes not only conventional employment for pay in the labor market but also the work of unpaid family members on family farms and family businesses. individuals working for pay within the home and the self-employed.

evolutionary psychology

this is the result of different selection pressures experienced by ancestral humans. women had a need for mates who were able to provide the resources to support them and their children, while men's preferences were for partners who could bear and nurture their children and for attributes that signaled that capability. those with such preferences experienced a greater reproductive success than those who did not and passed their genes onto offspring.

U-Shaped relationship

this is the shape of the relationship between women's labor force participation and economic development. LFPR is found to be high at early stages of economic development, when women tend to be heavily involved as family workers on the farm or in family businesses, or otherwise working for pay or producing for the market within the household. LFPR initially falls in the course of economic development as the locus of production moves out of the household and family enterprises and into factories and offices. nature of agricultural work changes and becomes wage based. there is a negative income effect because an increase in family income, all else remaining the same, will increase the family's demand for goods from which is derives satisfaction including the wive's contributions within the home and as a result, she is less likely to participate in the labor force. there is a positive substitution effect, an increase in the wife's potential market wage, all else remaining the same, will increase her opportunity cost of time spent at home. The higher family income associated with economic development causes an income effect that reduces labor force participation. also, if a married woman undertakes manual labor it is seen as her husband not being a good provider. as economic development progresses, women's education and their consequent opportunities for white collar employment rise. LFPR increases because higher wages are available to women lead to a substitution effect. (This is the rising portion of the U.) The U-shaped relationship between women's LFPR and economic development means that the initial phases of development may be associated with declining LFPR and to the extent that women's relative status depends on their productive roles, declining relative status of women as well. However, rising income associated with economic development benefits society as a whole, including women. thus, the overall effect of development on women's well-being, even at the bottom of the U, is not entirely negative. second, it is not just women's productive role, but where this activity actually takes place that is important. women's status is probably not as high as it will be later in the rising portion of the U when women are drawn out of the house and into the labor market. Women's status is arguably highest in the rising portion of the U because they are increasingly engaged in the paid labor market and in employment outside the confines of their home.

unemployed

those who do not have a job but who have made specific efforts to find a job within the past four weeks as well as those not working but waiting to be called back to work or to report for a new job within 30 days.

scope of economics

traditionally the market and market transactions critique- absence of female areas this has changed very much in the past 40 years or so as economists, have focused more on families, economic demography, female labor force participation and wages

family

two or more persons, related by blood, marriage, or adoption, living in the same household. decisions of family members are interdependent, consumption is joint, they pool income. composition of family changes when individuals move out and when the interest of family members diverges.

gross domestic product

unpaid activities are not included in the US _____ _____ ____ this is the total money value of all the goods and services produced by factors of production within a country over a one year period. when omitting non market production, comparisons of GDP between countries are distracted to the extent that the relative sizes of households and market sectors differ. further, within a country, the growth in GDP overstated if women reduce home production as they work more in the labor market. such a measure that includes goods and services produced in the household would provide a more complete picture regarding the degree of income inequality across families both a point in time and across time. estimating the value of non market actives and including this value in GDP poses a number of problems. one problem- lack of an ongoing US time use survey, was surmounted in 2003 with the BLS ATUS. however, there is an issue of when non market activities should be included in augmented measure of GDP. There is a lack of agreement regarding the preferable method of placing a value on non market activities.

american time use survey current population survey

unpaid work substantially contributes to the well being of individuals, families and society. married couples have been declining as a share of households. in the case of time spent on housework, it turns out that estimates obtained from questions based on recollections tend to be quite a bit higher. 2003- the US government launched its first over time use survey- the _______ ______ ______ survey- reports are collect from one respondent per household using a subsample of households who were interviewed for the currently population survey. _____ ______ ______ is the uS government survey used to collect data on unemployment and paid work and is the source of much of the data provided in this book

bargaining power

we did not consider how the couple determined its allocation of income and of time to the various commodities the family would enjoy. if however, their tastes differ significantly, the question arises as to how they will decide on the combination of commodities to be produced and consumed. whose preferences (husband's or wife's) will receive greater weight? the answer largely rests with who has greater ______ ________. in the tradition bread-winner husband, home maker wife family, the husband may be viewed as having the power of the purse and will be accorded a greater say in spending decisions and in other respects as well. further contributing to the husband's bargaining power is the wife's economic dependence. if the marriage were to break up, she would not have her own resources to support herself, weakening her own bargaining position in the marriage. as women's relative earnings increase, so does their relative position in the marriage and control over the household decisions.

steeper

we would expect those whose services are greater in demand in the market to have ______ indifference curves, reflecting their greater difficulty in substituting market goods for non market time in production. tastes and preferences will be a factor here too. some commodities cannot be purchased in the market. personal services and management tasks provided in the home. some commodities available in the market cannot be produced at home. ease or difficulty of substitutions represented by the steepness of the indifference curve.

economies of scale

when husbands and wives have very similar or even precisely the same relative abilities in the market and in home production, there will still be economic advantages to marriage. likely to be enhanced when individuals expect to have a long term relationship with a strong degree of commitment. ______ _______ _____- exist when an increase in the scale of operation of a production unit can result in increase output at decreasing pet unit cost. to the extent that a couple is able to benefit from such economics of scale both in production of such home goods and in purchasing market goods and services, economic gains result from living together.

part time for economic reasons/ involuntary part time

when individuals would prefer to work full time but can only find part time work because the unemployment rate is so sensitive tot he definition of who is considered among the unemployed, some economists also rely on broader measures of joblessness that include marginally attached workers and involuntary part time workers in addition to the unemployed.

substitution effect

when the price of a particular input changes, while prices of potential substitutes remain the same, the tendency for profit maximizing employees is to use more of the one that is now relatively cheaper and less that is now more expensive

status

where does the evidence for importance of women's role in production come from? look at societies of different levels of economic development today, or historical evidence. how can you judge ______? right to initiate and terminate marriage, personal freedom, role in the public sphere, mortality rates

indifference map

whole set of higher and lower curves. as we move out from the origin in a northeasterly direction, consumption possibilities and thus potential satisfaction increase.

nonmarket reservation wage value of non market time

will maximize utility or satisfaction where the budget constraint just touches the highest attainable indifference curve. the amount of income needed to induce her to give up an additional hour of non market time, given by the slope of the indifference curve, equals the market wage she is offered for that hour, given yb the slope of the budget constraint. the budget constraint is tangent to the indifference curve at y. when the indifference curve is steeper than the budget constraint, a higher value is set on __________ time than the wage rate, she is offered in the market. maximize utility by staying out of the labor force, spending all 16 hours available to her on non market activities. the slope of the indifference curve at zero hours of market work is termed the _________ _______ or the ________ of _______ ______ (w*), this is equal to the value an individual places on his or her time at home. if the market wage (w) is greater than the value of the non market time w* the individual will choose to participate in the labor market.

affect of wife earning more than husband

within marriage markets, geographical areas, if wives potentially would earn more than husbands, marriage rates are reduced. within couples, if a wife is predicted to earn more than her husband, she is less likely to participate in the labor market, or if she does, her income is lower than predicted. within couples, if a wife earns more than her husband report being less happy more likely to divorce gap between husband and wife in time spent in home production is LARGER But, recent evidence suggests that attitudes may be changing. 2013 attitude survey- only 28% of adults agreed that it's generally better for a marriage if the husband earns more than the wife compared to 40 percent in 1997. college graduates had especially permissive views, with only 18 percent agreeing

less

wive's LFP decreases are _____ sensitive to their husband's income than they were in the past. dramatic rise in married woman's participation rates relative to other groups. by 1992, married mothers were considerably more likely to be in the labor force then never married mothers. after 1990, growth in LFP of married mothers slowed and by the mid 1990s their LFP rates began to level off and eventually declined. over the 1990s, LFPR increased sharply among never married and other ever married mothers. PR of ever married mothers continued to be higher than those of married mothers. PR of never married mothers, after exceeding those of married mothers for a time, are not about the same. still, participation rates for never married mothers are still considerably higher than their levels in the early 1990s. fatherhood has been found to increase the labor supply of men. more in response to the birth of sons than daughters.

nonemployed wives

wives spent nearly 18 hours per week in core household activities, such as laundry, cleaning, cooking and yard work as compared with just under 11 hours for husbands. wives spend on a half times more in household activities as husbands in 2010. time in unpaid housework is the highest for ____ ________ ______. husbands of employment wives do not spend very much more time in housework than their counterparts who have non employed wives. wives spent substantially less time doing housework in the 1970s than they did in the 1960's, while time spent by husbands did not change much. from the 1970s-2010- housework by wives decreased even further. husbands housework increased modestly in 1980 but not much after.

feminism

women should have the opportunity to live up to their potential rather than feel they must conform to gender stereotypes

textiles service large training re-entry industrialization

women worked different jobs than men and concentrating in relatively ___ jobs. Men- 42% agricultural jobs, manufacturing- sizable share for men and women but less women. women in manufacturing were in _____, clothing and tobacco. Only 3% of men were in _____ jobs (waiter/banker) whereas 36% of women in service sector. majority in domestic service. foreign born white women were overrepresented in manufacturing and domestic service, as compared with native born white women. similar shares held white collar jobs. women more likely to be school teachers or nurses and men were managers and proprietors. the remainder of men and women white collar workers were in clerical and sales. the number of men in clerical positions greater exceeded that of women because women were such a small share of the labor at the time. after 1900- it increased markedly for women in clerical work. growth of female clerical employment can be contributed to: growth of ___ corporations, large proportions of women with a high school high school education who who needed little or no on the job ______. ERs willing to hire these women even hen they were not expected to stay on the job for a long time. ______-_____ was easy for women in these jobs. women also preferred clean white collar jobs, as opposed to dirtier, messier and more physically demanding blue collar jobs. gender pay ratio- women's pay divided by men's pay was .29 in 1815, this narrowed around ________ Increased to .56 by 1930. increase in the relative wages of women within broad applications. movement of women into higher paying sectors.

production outside

women's relative status is positively influenced by the importance of their role in _____, which is in turn shaped by the technology employed by the society in producing the necessities of life. (ex. shifting cultivation vs. plowing cultivation). women actively participating in framework in shifting cultivation. plow cultivation tended to result in a greater gender division of labor where men worked outside and women worked in the home. another factor influencing women's relative status is the extent of their participation in productive activities _____ the home and the family, in the public sphere. part of the explanation for women's relatively lower status in earlier times is that their activities were confined to the home while the public sphere was monopolized by men.

underemployed

workers have to take jobs for which they are clearly overqualified

disadvantages to the traditional division of labor

you need to assume that utility= f(commodities) commodities= f(market goods, home time) disadvantages of the traditional division of labor: tastes and bargaining power- disagreements make bargaining power important. depends on the threat point- how well each would do outside the marriage. the traditional division of labor lowers Wf and increases women specific investments. this makes lower bargaining power for women within marriages. studies suggest that bargaining power is important and that it matter who, the husband or the wife, brings in the income in determining how the income is spent. higher income to the wife is generally associated with higher expenditures on children, in developing countries this can affect the health and survival of children. also, there are life cycle changes, costs of interdependence, gains of diversification, lack of sharing of housework, domestic violence