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Gender in the Economy Week 8 Notes

by: Alejandra Cortez

Gender in the Economy Week 8 Notes Econ 211-001

Marketplace > Colorado State University > Economcs > Econ 211-001 > Gender in the Economy Week 8 Notes
Alejandra Cortez
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About this Document

Compiled notes from the powerpoints and discussions from week 8 (03/07-03/11)
Gender in the Economy
Christina Curley
Class Notes




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This 4 page Class Notes was uploaded by Alejandra Cortez on Tuesday March 1, 2016. The Class Notes belongs to Econ 211-001 at Colorado State University taught by Christina Curley in Winter 2016. Since its upload, it has received 19 views. For similar materials see Gender in the Economy in Economcs at Colorado State University.

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Date Created: 03/01/16
Gender in the Economy Week 8 The Labor Force: Definitions and Trends Why look at labor participation trends by gender?  Observe the changes in gender roles  Examine the well-being of the economy  Understand bargaining power  Explain the wage gap Definitions  Labor Force: all individuals age 16+ who worked for pay during the week of reference, or actively sought paid employment during the 4 weeks prior to the reference week o Labor Force = employed + unemployed  Out of the labor force: neither employed nor unemployed; choosing not to work or look for work o Stay-at-home parents, retired  Employed: those who work for pay  Unemployed: those who do not have a job but have made serious efforts to find one in the last 4 weeks  Labor force participation rate (LFPR): number of members of a group in the labor force divided by total number of that group in the population o Ex. LFPR of women = 57%; 57% of women 16+ are in the labor force  Unemployment rate: number of people who are unemployed divided by the size of the labor force o Unemployment will never by 0% o 1-2% = people transitioning between jobs  Marginally attached workers: those currently neither working nor looking for work, but indicate that they want a job and have searched in the last year o Discouraged workers: subset of marginally attached workers who state that their reason for being out of the labor force is that they don’t believe they have the opportunity to find a job  Underemployment: occurs when workers have to take jobs that they are overqualified for o Ex. College graduate has to take a job at Starbucks  Part-time for economic reasons: would prefer to work fulltime but can only find part time jobs  These can skew the reported unemployment statistics because these aren’t included in unemployment rate calculation Trends in Labor Force Participation  Slow rate of LFPR increase for women pre-1940s  Larger increase in women’s LFPR after 1940 o 1940: 28% of women in the labor force (young and single) o 2014: 57% of women in the labor force  Due to combination of factors: WWII, social movements, increased education  Men’s LFPR has been declining from 1950 (86%) to 2014 (69%)  Before 1940, women typically left the labor force upon marriage  Between 1940-1960, participation rates increase for married women with school aged kids or grown kids  Between 1960-1980, growth in labor force participation for women of all ages o Increase in participation rates or married women with small children  Continued growth in female LFPR  Consumerism increased in 1960, causing growth in LFPR  Also, declined birth rates and increased divorce rates Trends in labor force attachment of women  Rising female LFPR has been associated with an increase in labor force attachment of women over the life cycle  Women are substantially more likely to work while pregnant now than in the 1960s  Women are more likely to return to work right after birth  Increased commitment to career/labor force Trend in hours worked  Full time work declined from 60 hours in early 1900s to 40 hours in the 1940s and beyond  Average number of hours worked per week has been pretty stable  Men work an average of 45 hours per week  Women work and average of 37 hours per week  Women are more likely to work part-time jobs than men Trends in gender differences in unemployment  Women traditionally had higher unemployment rates than men until the 1980s  After 1980s, women’s unemployment rates have been the same or lower than men’s  Women have lower labor force attachment and are more likely to exit the labor force when they lose their jobs (not counted as unemployed if not in the labor force)  Gender differences in occupations and industries o Men dominate blue-collar and manufacturing jobs, which have above average layoff and unemployment rates o Women tend to be in health and education, which have low layoff and unemployment rates Evidence on Gender Differences in Labor Market Outcomes Occupational Differences  Occupations differences associated with gender differnces in wages  Some careers are seen as more feminine or masculine  Some careers attract men or women for other reasons  Different occupations have various average wages, educational requirements, and time requirements  Gender differences in broad occupational categories: o Traditionally, women were concentrated in office, administrative support, and service occupations and still are o As of 2011, 27% of women workers were in professional and related occupations o Women are more highly concentrated in service occupations o Men are more likely than women to be in blue-collar occupations o Slightly higher share of men work in management, business and financial occupations Industry Differences  Men are more heavily concentrated in construction, manufacturing, and transportation and utilities  Women are more heavily concentrated in education and health services  Differences in industry reflect differences in occupation Occupational Segregation  Many jobs are either predominantly male or female and very few with equal men and women o Male-dominated: architects, clergy, dentists, engineers o Female-dominated: dieticians, librarians, nurses, social workers, primary education teachers Hierarchies within Occupations  Men and women tend to be employed at different levels of the hierarchy within occupations o University faculty: women tend to be in the lower ranks as instructors and assistant professors o Corporate executives are mostly male Evaluating the extent of occupational segregation  Some argue that occupational segregation is natural and appropriate as it emphasizes differences between the groups  If men and women were not constrained by gender stereotyping and other barriers, they wouldn’t be so concentrated in separate occupations Trends in Occupational Segregation  More progress was made by highly educated women  Sometimes, firms responded to pressure by placing women in management positions that involved little responsibility or contact with higher management Female-Male Earnings Ratio  For a long time, women earned about 59 cents to every dollar men earned  1981-2011 there was an increase in gender earnings ratio from 59%- 77% o The earnings ratio of 77% reflects average earnings o If we compare people with the same age, education level, hours worked, and job type, the earnings ratio would be 91%  Women earn 77% of what men earn; women earn 91% of what men earn for the same work  The gender wage gap is lower for women age 25-34, then the wage gap increases  Men are still less likely to move into traditionally female jobs  Labor market discrimination: when employers treat certain groups differently even when there are no productivity differences between them o There is still some discrimination against women in the labor market


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