The pattern of joining the labor force only at an advanced stage of the life-cycle was widespread among American women in the 1960s and 1970s, but not since the 1980s. To explain this change we conduct a theoretical analysis of the interrelation between women's lifetime labor supply choices and the dynamic macroeconomic environment. In our model women choose the late-entry pattern only at early stages of the growth process when wages are sufficiently low and grow sufficiently rapidly. As the economy grows, this lifetime labor profile vanishes and women either join the labor force either early in life or not at all.
Bibliographical noteFunding Information:
We thank Oded Galor, Omer Moav, Avi Simhon, Joseph Zeira and seminar participants at Ben- Gurion University, the Hebrew University of Jerusalem, The University of Haifa and Tel-Aviv University. We are grateful to the Maurice Falk Institute for financial support.
- Labor Force Participation