Question Template: Unemployment & Inflation

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Question Template: Unemployment &

Inflation
Before attending the group meeting, please answer the following and
prepare to discuss in the group meeting:
1. What is the US female labor force participation rate in 2018? How does this figure
compare to three years ago? How does it compare to 2000? Finally, how does it now
compare to the female participation rate in other large advanced economies?
US female labor force participation rate 2018: 75.2%
3 years ago it was 73.3% (so it is higher in 2018)
In 2000 it was the highest among large advanced economies (has declined since then)
Currently (2018) it is behind Canada, Australia, and the UK.
2. What are two main reasons that women are reentering the US workforce? Is this trend
expected to continue? If so, why? If not, what headwinds stand in the way of rising
female work force participation?
Two main reasons: 1) a plenitude of jobs 2) gradual rise in wages
The trend is expected to continue due to the long-running expansion and decline in
unemployment
Headwinds: private child care expenses; lack of parental leave; absence of tax policy to
benefit working mothers

During the meeting, please discuss and answer the following:


3. You are an economist at the Federal Reserve. Briefly explain how rising US labor force
participation benefits the overall economy. Be sure to include a discussion of the impact
on wages and the components of GDP.
Greater labor force participation increases the supply of goods and services and boosts
GDP. Consumption increases as more income is earned; Investment increases as
businesses expand.

4. A Fortune 500 company is struggling to retain women in their company. Based on the
information in the article and other information you find on the internet, make two
recommendations that are economically sound that could incentivize women to remain in
the company. Back up your recommendations with information from the article and other
research you have done.

Answers will vary; more generous parental leave policies could encourage women to
enter the work force without concern for losing their jobs when they have children; Tax
policies that relieve the tax burden for working women (particularly with children) or
companies who employ women; private child care options funded by employers.

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