Labour force participation and the feminising of the labour force

Abstract

This paper studies the effects of changes in labour force particiapation rates on the size and structure of the Irish labour force over the period 1971-1991. The rise in participation rates among females aged 25-54 and the decline in participation among older and younger people of both sexes altered the structure of the labour force significantly. Time series of annual participation rates are used to explore the reasons for these changes. It is shown that participation rates among those aged 15-24 and males aged 65 and over, although dominated by a negative trend, are responsive to the returns to participation as measured by a combination of wage rates, unemployment benefits and the rate of unemployment. Participation rates among women aged 20-54 are also responsive to the returns to entering the labour force, but there was also a large increase in labour supply associated with the sharp fall in the birth rate during the 1980s. The implications of the elasticity of women's labour supply for the rate of unemployment are discussed.