Finding the Time: Challenges Facing Working Families

Heather Boushey

Center for Economic and Policy Research

16 June 2006

Figure 1. Labor supply of men and women, age 20 and over

20

30

40

50

60

70

80

90

1948

1951

1954

1957

1960

1963

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

Man 20 & over Women 20 & over

Source: Current Population Survey, March Annual Demographic File.

Figure 2. Annual hours of work in married families in middle fifth of income

distribution, 1979 & 2000

0

500

1000

1500

2000

2500

1979 2000

Year

An

nu

al h

ou

rs o

f w

ork

Husbands Wives

Source: Mishel, Bernstein, and Allegretto, 2004.

Figure 3. Growth in inflation-adjusted family income

2.3 2.4 2.4 2.5 2.4 2.4

0.20.4 0.5

0.7

1.11.4

Bottom20%

Second20%

Middle 20%

Fourth 20%

Top 20% Top 5%

Family income threshold (lower bound)

Pe

rce

nt

cha

ng

e in

an

nu

al r

ea

l fa

mily

inco

me

1947-1979 1979-2004

Source: U.S. Census Bureau, Historical Income Tables, Tables F1 & F5 http://www.census.gov/hhes/www/income/histinc/.

Figure 4. Percent change in income without wives earnings, 1979-2000

7.515.9

24.031.1

63.0

-13.9

-4.6

5.1

14.7

51.5

Bottom 20% Second 20% Middle 20% Fourth 20% Top 20%

Family income threshold (lower bound)

To

tal p

erc

en

t ch

an

ge

in r

ea

l fa

mily

in

com

e

Actual income growth

Income growth without wives' contribution

Source: Mishel, Bernstein, and Allegretto, 2004.

Figure 5. The “two-income trap”

$17,834 $17,045

$20,866

$50,755

-$10,000

$10,000

$30,000

$50,000

$70,000

Single-income family early 1970s Dual-income family early 2000s

Infla

tion

-ad

just

ed

fa

mily

inco

me

Fixed costs (mortgage, child care,health insurance, car, taxes)

Discretionary income

Source: Warren and Tyagi, 2005. The Two-Income Trap, p. 51.

Figure 6. The effect of children on women’s employment is not increasing

70.2%

74.8% 75.3% 74.8%

49.5%

56.5%

60.9%

67.0%65.6%

76.9%

40%

50%

60%

70%

80%

90%

1984 1989 1993 2000 2004

Year

Lab

or

forc

e p

arti

cip

atio

n r

ate

20.7

18.3

14.4

9.9 9.2

Women's LFPR controlling for demographics and year effects

Unadjusted LFPR: All women

Child effect

Source: Boushey, 2005.Notes: Sample is women aged 25 to 45.