The Great Depression and the rise of female employment: A new hypothesis |
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| Institution: | 2. CIREQ, Université de Montréal, Canada;1. Department of Economics, CIREQ & IZA, Université de Montréal, C.P. 6128 succursale Centre-ville, Montréal, QC H3C 3J7, Canada;2. CIREQ, Université de Montréal, Canada;1. University of Pittsburgh and NBER, USA;2. Dickinson College, P.O. Box 1773, Carlisle, PA 17013, USA;3. University of Copenhagen, Øster Farimagsgade 5, DK-1353 Copenhagen K, Denmark;1. Federal Reserve Bank of Chicago, 230 S LaSalle St 11th Floor, Chicago, IL 60201, United States;2. University of Oregon, United States;3. Princeton University, United States;1. Brigham Young University, United States;4. University of Notre Dame, United States;1. Department of Economic History, Lund University, Sweden;2. Department of Economic History, Lund University, Sweden and Faculty of Economics and Business, University of Groningen, The Netherlands;1. School of Slavonic and East European Studies, University College London, 16 Taviton Street, London WC1H 0BW, United Kingdom;2. Národohospodá?ská fakulta, Vysoká ?kola ekonomická v Praze, náměstí Winstona Churchilla 4, Prague 3 130 67, Czech Republic;3. UCL Center for Comparative Studies of Emerging Economies, 16 Taviton Street, London WC1H 0BW, United Kingdom;4. d-Faculty of Business and Economics, Mendel University in Brno, and Charles University, Faculty of Law;1. Lund University, Sweden;2. London School of Economics, United Kingdom;3. Queen''s University Belfast, United Kingdom |
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| Abstract: | The life-cycle labor supply of women born at the turn of the 20th century diverged sharply from previous cohorts. Although they had similar participation rates in early adulthood, younger cohorts were significantly more likely to work at middle age. This paper documents a link between these changing patterns of female labor supply and the Great Depression. We find that the onset of the Great Depression led to an increase in young women's employment in 1930 via an added-worker effect. Cohorts induced into the workforce in the early 1930s had significantly higher employment rates through the 1940s and 1950s of up to 3 percentage points, suggesting a permanent impact of the Great Depression on women's lifecycle labor supply. |
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