Re:WTF Happened in 1971? (2019)
by dehrmann on Monday November 23, 2020 @01:15PM
(#25189742)
Between 1965 and 1988, the share of women in the labor force rose from 35% to 45% and has held around 45% since then. [1]
The added labor could have pushed down the price of labor. Productivity acts as a ceiling for the price of labor, so seem those two track suggests that there was a shortage of labor.
While the trend started in the 60's, likely in response to social changes in the 60's, it could have been accelerated by households struggling with 70's stagflation, sending more people to work to overcome stagnating wages. There'd be something like the paradox of thrift, but for labor, where people work more, but aggregate income doesn't change much.
Real household income has actually gone up 28% since 1985 [2], so there might be something to viewing this through a household lens, not a wage lens.
And as others, and even the link say. there was a lot going on in the 70's, so this is hard to tease apart.
The added labor could have pushed down the price of labor. Productivity acts as a ceiling for the price of labor, so seem those two track suggests that there was a shortage of labor.
While the trend started in the 60's, likely in response to social changes in the 60's, it could have been accelerated by households struggling with 70's stagflation, sending more people to work to overcome stagnating wages. There'd be something like the paradox of thrift, but for labor, where people work more, but aggregate income doesn't change much.
Real household income has actually gone up 28% since 1985 [2], so there might be something to viewing this through a household lens, not a wage lens.
And as others, and even the link say. there was a lot going on in the 70's, so this is hard to tease apart.
1: https://www.dol.gov/agencies/wb/data/facts-over-time/women-i...
2: https://fred.stlouisfed.org/series/MEHOINUSA672N