The Labor Force: Definitions and Trends, Essay Example

Average hours per day, according to the American Time Use Survey: The number of hours spent on average during a 24-hour day, between diary day at 4 a.m. and 4 a.m. on the interview day for a specific activity.

Average hours per day, based on population according to the American Time Use Survey: The average number of hours per day is calculated using all data collected from a given population. This includes those respondents who did not perform a specific job on the diary day.

 Diary day (American Time Use Survey): The diary day is recognized as the reported day which individuals use to track their activities for the American Time Use Survey. For example, the diary day of someone interviewed on Tuesday is Monday.

Displaced workers (Current Population Survey)

A person of 20 years, or over who lost or left their jobs because their plant or company closed or was moved,  or due to having insufficient work, or their position was terminated.

Trends in Labor Force Participation

Between 1950-1998, the bulk of labor force participation increases happened between 1970 and 1990. This occurred due to a 14.2 percentage increase in female labor force participants during this twenty year period in collaboration with the entry of baby boomers into the workforce.

Trends in Labor Force Attachment of Women

Evolution of age-specific female labor force participation occurred between 1950 and 1998. Labor force attachment is defined as the ability of one to stay employed. Weak labor force attachment often leads to impoverished situations. Starting in 1970, their was a convergence between women’s labor force attachment and that of men, now their labor force attachment rates are virtually the same, except for during times of recession when make labor force attachment sharply declines to that of women.

Trends in Hours Worked

According to the National Bureau of Economics, the average amount of work hours per week declined and the Bureau attributes this trend to technological progress. The Bureau most specifically attributes this decline in hours worked to the increase of wages and the ultimate influence of wealth as a factor. The reduction of housework as a time consuming social necessity, due to increase in technologically advanced home appliances, and the role time -demanding leisure goods played in increasing standard permitted time off from work.

Trends in Gender Differences in Unemployment

The gender gap in unemployment is understood as the difference between men and women in rates of employment. Data shows that this difference was significant prior to 1980, virtually disappeared after 1980, except for during periods of recession when male unemployment always drastically exceeds female unemployment. It’s believed that the gender gap narrowed due to the fact that in 1970 there was a convergence in labor market attachment that occurred between men and women. This labor force attachment convergence was only further reinforced by the Family Medical Leave Act (FMLA) of 1993 , which allowed women to take maternity leave from work without losing employment.

Chapter 6 The Labor Supply Decision
The Labor Supply Decision

Labor supply decision is a labor theory that asserts workers are responsible for choosing their work hours, income as it pertains to maximizing their use within a select time frame and in relation to the number of hours in the day.

Some Applications of the Theory: Taxes, Child Care Costs, and Labor Supply

Most data shows that increased childcare cost and taxes effects the whole household as opposed to influencing one particular family member, but it does result in a substantial decline in the female labor force.

Analyzing the Long-term Growth in Women’s Labor Force Participation

The development of the long-term growth in women’s labor force participation is directly affiliated with the increase demand for fine motor skills as women are recognized as having a noticeable advantage in this aspect of labor over men. World War II also played a significant role in the introduction of women in the U.S. Labor force. As men were called to war, women were recruited by companies during the industrial era to take on the jobs that many men were known to carryout. Recent Trends in Women’s Labor Force Participation: Has the Engine of Growth Stalled?

Labor force growth is largely attributed to the babyboomers aging and the increase in the female labor force participation, but it’s largely believe that women’s labor force participation has already peaked and it is presumed that it will slow down.

Analyzing Trends in Men’s Labor Force Participation

Men’s Labor Force participation has gradually declines since 1950 and continues to decline.

Black and White Participation Differentials: Serious Employment Problems for Black Men
Blacks have historically had a 61.0% to 65% employment participation rate since 1980 compared to the 64%- 67.4% participation rate of whites, or the 64.0% to 67.9% employment rate of Hispanic Americans. This is largely attributed to socioeconomic factors that limit Blacks from gaining access to avenues of employment such as lack of education or financial base resources to supplement employment avenues.

 Appendix: The Income and Substitution Effects: A Closer Look

Labor supply does not respond to the permanent change in wage rates, but real income does adjust based on the price of consumer goods.  When prices change it effects the consumer in two ways. First the price of the initial product as it’s compared to other products changes, then dude to the change of the product, the consumer’s real income also changes.  The substitution effect represents a change in patterns of consumption in direct response to the change in the relative price of goods or services. The income effect is change in consumption patterns directly caused by a change in purchasing power.