Labor Force Participation

Labor Force Participation

• Labor Force Participation Rate
  • Definition: Percentage of the total adult population that is in the labor force.
• Labor Force
  • Composed of the unemployed and employed individuals.
• Formula
  • \text{Labor force participation rate} = \frac{\text{Labor force}}{\text{Adult population}} \times 100

Labor-Force Participation Rates for Men and Women since 1950

• General Trend: Over several decades, there's been a noticeable shift: women have increasingly entered the labor force, while men have gradually left it.

Labor-force participation of men and women in the U.S. economy

• Data on Labor-Force Participation (1950)
  • The difference between participation rates was significant.
    • 33% of women were either working or actively looking for work.
    • 87% of men were either working or actively looking for work.

Labor-force participation of men and women in the U.S. economy

• Data on Labor-Force Participation (Today)
  • The difference between participation rates has narrowed.
    • 59% of women are either working or looking for work.
    • 72% of men are either working or looking for work.

Women’s Role in American Society

• Dramatic Changes Over the Past Century
  • New Technologies: These have reduced the amount of time needed for routine household tasks.
  • Improved Birth Control: This has led to a reduction in the number of children born to the typical family.
  • Shifting Political and Social Attitudes

Fall in Men’s Labor-Force Participation

• Reasons for the Decline
  • Young Men: Increasingly choose to stay in school for a longer period.
  • Older Men: Tend to retire earlier and live longer.
  • Increase in Employed Women: More fathers are now staying at home to raise their children.
• Categorization: Those out of the labor force.
  • Full-time students
  • Retirees
  • Stay-at-home dads

The Labor-Market Experiences of Various Demographic Groups (2009)

• Overview: Shows the unemployment rate and labor-force participation rate of various groups in the U.S. population.

Labor Force Participation

• Labor-market experiences: Women ages 20 and older
  • Lower rates of labor-force participation than men
  • Once in the labor force, men and women have similar rates of unemployment

Labor Force Participation

• Labor-market experiences
  • Blacks ages 20 and older
    • Similar rates of labor-force participation as whites
    • Much higher rates of unemployment
  • Teenagers
    • Lower rates of labor-force participation
    • Much higher rates of unemployment than older workers