Changing Female Labor Force Participation: Influences on Income Inequality and Distribution

Abstract

Analysis of annual Current Population Survey data from 1947 to 1985 reveals that increased female labor force participation equalizes the income distribution of male-headed income-receiving units and husband-wife families. For male-headed units, increased female labor force participation reduces the income share of the top quintile, suggesting that assimilating females decrease the earnings of men in high-wage occupations. For husband-wife families prior to 1970, equalizing impacts stem from relatively high participation rates of women married to low-earning men. After 1970, however, increased participation came mainly from women with above-average earnings growth who were married to high-earning men. Hence, continued increased female labor force participation may increase inequality for dual-earning husband-wife families.

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