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Why Are U.S. Women Decreasing Their Labor Force Participation If Their Wages Are Rising?

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  • Chen Huang

Abstract

Given the traditional interpretation of women's labor force participation rate (LFPR) trends as movements along a positively sloped labor supply curve, it is surprising that the recent downward trend in U.S. women's LFPR has occurred over a period when women's real wages were commonly believed to be rising. I find that almost two‐thirds of the decline since 2000 is attributable to aging of the adult female population. The remainder, due to declining labor force participation for women under 55, becomes less puzzling in light of my evidence that the wage/education locus faced by women actually may have worsened since 2000. (JEL J21, J31, J82)

Suggested Citation

  • Chen Huang, 2018. "Why Are U.S. Women Decreasing Their Labor Force Participation If Their Wages Are Rising?," Economic Inquiry, Western Economic Association International, vol. 56(4), pages 2010-2026, October.
    • Handle: RePEc:bla:ecinqu:v:56:y:2018:i:4:p:2010-2026
    DOI: 10.1111/ecin.12689
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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