Aaron Taylor
Professor Alonso
ECP 3254
4/8/2011
Chapter 10 Assignment
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Describe the main changes in the typical family in the United States over the past 30– 40 years and explain their causes. The advantages of specialization have diminished, with the rise of dual-earner couples. Mother-Only families have more than doubled for all races over the course of 30-40 years. Married-Couple Families have dropped from 87.1% to 67.2% for all races. The declining rates amongst black adults have declined mainly due to the black women’s rising economic opportunities combined with black men being poor job prospects. The unmarried birth percentage has tripled and mothers are giving birth at an older age. Cohabitation has increased over the past 30-40 years. Cohabiting couples (Gay/ Unmarried) are reaping the same economics benefits as married couples. Men and women are getting married at older ages; 75.3% of women between the ages of 20-24 never marry as of 2006(35.8% in 1970). With the increase in labor participation for women, women may not be as inclined to rush into marriage. Women have become more economically independent.
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Women’s rising labor force participation might either increase or reduce marriage rates. Explain why the effect could go either way. The women’s increased labor force participation reduces the gains (specialization) within the marriage; which also increases the financial viability of exiting a marriage and supporting oneself. The gains from shared consumption have increased. Dual-earners can enjoy an increase in utility when it comes to leisure activities of preference; such as entertainment and travel. However, without empirical evidence it’s not possible to determine the impact of women’s labor force participation on the increase or reduction in marriage rates.