Women’s employment has changed over time and current employment rates are mostly a result of long-term trends rather than current economic conditions. Women have experienced greater continuity of employment and have reduced their wage elasticity as they have become less responsive to husbands’ wages (Blau and Kahn 2005). In fact, women with higher wages are more likely to work and labor force participation rates have increased more over time among women married to men with higher wages. Part of this increase in labor force participation may be due to increased educational attainment, better occupational opportunities, and the long-term decline in real earnings. Even though employment rates continue to be significantly lower among mothers (Kaufman and Uhlenberg 2000; Altonji and Paxson 1992), younger cohorts of women have experienced increases in labor force participation (Percheski 2008). Finally, not all women are married or have access to sufficient alternative sources of income. A large number of female-headed households and low-income households depend on women’s earnings and they may seek employment regardless of economic conditions. Nonetheless, the recession has had an impact on employment and prior recessions may have prompted more women to enter the labor force than otherwise would have. A number of studies have looked at family household labor supply decisions and the worker effect,” in particular. “added That is, households in which a wife enters the labor force or increases her work hours to supplement her husband’s employment (or lack thereof). Though representing only a small percentage of households, the percentage of married-couple families with own children under 18 years old with an unemployed husband and an employed wife grew substantially from 1.8 percent in 2008 to 3.4 percent in 2009 (Woodring 2010). Mattingly and Smith (2010) show that wives of husbands who stopped working during the current recession were twice as likely to enter the labor force, particularly among those with older children or no children and those in lower-income households. Similarly, Juhn and Potter (2007) found that women are 5 to 6 percent more likely to enter employment if their husbands exit employment,
Women’s employment has changed over time and current employment rates are mostly a result of long-term trends rather than current economic conditions. Women have experienced greater continuity of employment and have reduced their wage elasticity as they have become less responsive to husbands’ wages (Blau and Kahn 2005). In fact, women with higher wages are more likely to work and labor force participation rates have increased more over time among women married to men with higher wages. Part of this increase in labor force participation may be due to increased educational attainment, better occupational opportunities, and the long-term decline in real earnings. Even though employment rates continue to be significantly lower among mothers (Kaufman and Uhlenberg 2000; Altonji and Paxson 1992), younger cohorts of women have experienced increases in labor force participation (Percheski 2008). Finally, not all women are married or have access to sufficient alternative sources of income. A large number of female-headed households and low-income households depend on women’s earnings and they may seek employment regardless of economic conditions. Nonetheless, the recession has had an impact on employment and prior recessions may have prompted more women to enter the labor force than otherwise would have. A number of studies have looked at family household labor supply decisions and the “added worker effect,” in particular. That is, households in which a wife enters the labor force or increases her work hours to supplement her husband’s employment (or lack thereof). Though representing only a small percentage of households, the percentage of married-couple families with own children under 18 years old with an unemployed husband and an employed wife grew substantially from 1.8 percent in 2008 to 3.4 percent in 2009 (Woodring 2010). Mattingly and Smith (2010) show that wives of husbands who stopped working during the current recession were twice as likely to enter the labor force, particularly among those with older children or no children and those in lower-income households. Similarly, Juhn and Potter (2007) found that women are 5 to 6 percent more likely to enter employment if their husbands exit employment,
SEHSD-WP2011-29.docx