Economics of  Gender, Race, Family Victoria Vernon, Ph.D Empire State College Lesson 1: Trends, Definitions
Changes for Women, 1960-2000
Changes for Men, 1960-2000
16.7 in 2005
 
What is Economics? <ul><li>Economics studies human behavior  </li></ul><ul><li>Central question of Economics : </li></ul><...
Every Choice Has a Cost <ul><li>OPPORTUNITY COST = </li></ul><ul><li>value of best alternative foregone  </li></ul><ul><li...
How do we make choices? <ul><li>People are  SELF-interested </li></ul><ul><ul><li>Maximize our own joy, happiness,   UTILI...
Rational decision example:  Go to college? <ul><li>Benefits: </li></ul><ul><ul><li>higher future income: $100,000 </li></u...
 
Labor Force Participation Rate LFPR = Number of people in the labor force (those working or looking for work) Noninstituti...
<ul><li>NOT in the labor force </li></ul><ul><li>children </li></ul><ul><li>disabled </li></ul><ul><li>retired </li></ul><...
Labor Force Participation Rates
 
Historical Experience of College Women <ul><li>Research by Goldin :  </li></ul><ul><ul><li>Family and work experiences of ...
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  • 08/31/09
  • 08/31/09
  • Family1

    1. 1. Economics of Gender, Race, Family Victoria Vernon, Ph.D Empire State College Lesson 1: Trends, Definitions
    2. 2. Changes for Women, 1960-2000
    3. 3. Changes for Men, 1960-2000
    4. 4. 16.7 in 2005
    5. 6. What is Economics? <ul><li>Economics studies human behavior </li></ul><ul><li>Central question of Economics : </li></ul><ul><li>How do we allocate LIMITED RESOURCES to satisfy the most pressing of our UNLIMITED WANTS? </li></ul><ul><li>Limited </li></ul><ul><ul><li>Money </li></ul></ul><ul><ul><li>Time </li></ul></ul><ul><ul><li>Effort </li></ul></ul><ul><li>We can’t always get everything we want </li></ul><ul><li>How do we make choices over alternatives? </li></ul>
    6. 7. Every Choice Has a Cost <ul><li>OPPORTUNITY COST = </li></ul><ul><li>value of best alternative foregone </li></ul><ul><li>1. OC of taking 1 hour off work = lost hourly wage (ex:$20) </li></ul><ul><li>2. OK of being a full time mother for a year = </li></ul><ul><li>lost income and work experience (ex: $90,000) </li></ul><ul><li>Find opportunity cost of : </li></ul><ul><ul><li>Taking this course </li></ul></ul><ul><ul><li>Watching TV for 3 hours </li></ul></ul><ul><ul><li>Oprah Winfrey’s week of vacation </li></ul></ul><ul><ul><li>Spending $ 200 on a pair of shoes </li></ul></ul><ul><li>“ Whatever is worth doing is worth doing well.” Always? </li></ul>
    7. 8. How do we make choices? <ul><li>People are SELF-interested </li></ul><ul><ul><li>Maximize our own joy, happiness, UTILITY = </li></ul></ul><ul><li>subjective measure of joy, pleasure, happiness, satisfaction from consuming goods/services </li></ul><ul><li>People are RATIONAL </li></ul><ul><ul><li>respond to incentives </li></ul></ul><ul><ul><li>compare COSTS and BENEFITS of alternatives, </li></ul></ul><ul><ul><li>select one with highest NET BENEFITS </li></ul></ul><ul><ul><li>Examples of decisions: </li></ul></ul><ul><ul><li>Buy coffee or tea? </li></ul></ul><ul><ul><li>Get married or not? </li></ul></ul><ul><ul><li>Spend evening at home, rent a movie, or go to a show? </li></ul></ul>
    8. 9. Rational decision example: Go to college? <ul><li>Benefits: </li></ul><ul><ul><li>higher future income: $100,000 </li></ul></ul><ul><ul><li>lower insurance rates: $10,000 </li></ul></ul><ul><ul><li>better health: $50,000 </li></ul></ul><ul><ul><li>other ? </li></ul></ul><ul><ul><li>Total benefits : $160,000 </li></ul></ul><ul><ul><li>Benefits> Costs </li></ul></ul><ul><li>Costs: </li></ul><ul><ul><li>tuition, books: $20,000 </li></ul></ul><ul><ul><li>lost income: $100,000 </li></ul></ul><ul><ul><li>Total cost: $120,000 </li></ul></ul>
    9. 11. Labor Force Participation Rate LFPR = Number of people in the labor force (those working or looking for work) Noninstitutionalized working age (age 16 and older) population * 100% For example, in February 2007: LFPR = 152,784,000 230,834,000 * 100% = 66.2% Labor force = employed + unemployed Unemployed = people actively looking for work
    10. 12. <ul><li>NOT in the labor force </li></ul><ul><li>children </li></ul><ul><li>disabled </li></ul><ul><li>retired </li></ul><ul><li>housewives/househusbands </li></ul><ul><li>full time students </li></ul><ul><li>unemployed, not looking for work (discouraged workers) </li></ul>
    11. 13. Labor Force Participation Rates
    12. 15. Historical Experience of College Women <ul><li>Research by Goldin : </li></ul><ul><ul><li>Family and work experiences of college-educated throughout 1 st half of 20 th century. </li></ul></ul><ul><li>For that 1 st birth cohort: </li></ul><ul><ul><li>For both men and women, college rare around year 1900 </li></ul></ul><ul><ul><li>For women: very rare to combine work and family. </li></ul></ul><ul><ul><li>1/3 of women who went to college never married. </li></ul></ul><ul><ul><li>Nearly half never had kids (including ¼ who did marry). </li></ul></ul><ul><ul><li>Occupations: 60% school teachers. </li></ul></ul><ul><li>As move forward by cohort : college-educated women more and more likely to marry and have kids. </li></ul><ul><li>Choices then and now: </li></ul><ul><ul><li>First: work or family. </li></ul></ul><ul><ul><li>Then: work and family. </li></ul></ul><ul><ul><li>Now : career then family. </li></ul></ul>

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