Answer to Question #215993 in Microeconomics for Zee

Question

In china and United States women labor force participation rose dramatically over the period of 1980, do you think this dramatic rise affects income of the country? How? Support your argument with facts and figures?

Answer 1

All over the world, labor force participation among women of working age increased substantially in the last century. The 20th century witnessed a radical increase in number of women participating in labor markets across early industrialized countries.

In USA for example, the growth in participation in 1980s can be attributed to participation by married women. An upward trend was observed for the general population mainly among married women.

According to U.S Bureau of Labor Statistics 2015, 43.3% of women in 1970 worked outside their home. Women participation in the workforce influenced wage growth in many U.S metropolitan areas. As women joined the workforce they helped make cities more productive and increased wages. For example in 1980 59.5% of women in Minneapolis were in the labour force compared to 53.3% in columbus , Ohio. That more than 6% difference led to over 4% higher median wage growth for Minneapolis which saw median wages grow to $0.54|hour more than Columbus from 1980 to 2010. 1980s female labour forces participation in China was 84% exceeded that in many developed countries (84% versus 61% in the organization for economic corporation and development) and the gender wage gap was much smaller (16% versus 22%).