Chapter 21:- A historical perspective on women in the labor force
In the early 20th century, most women in the United States did not work outside the home, and those who did were primarily young and unmarried. In that era, just 20 percent of all women were "gainful workers," as the Census Bureau then categorized labor force participation outside the home, and only 5 percent of those married were categorized as such. Of course, these statistics somewhat understate the contributions of married women to the economy beyond housekeeping and childrearing, since women's work in the home often included work in family businesses and the home production of goods, such as agricultural products, for sale. Also, the aggregate statistics obscure the differential experience of women by race. African American women were about twice as likely to participate in the labor force as were white women at the time, largely because they were more likely to remain in the labor force after marriage.
The history of women's work and wages and how it has created success for us all
Janet L. Yellen
MAY 2020
As we celebrate the centennial of the 19th Amendment, giving women the right to vote, we should also celebrate the major strides women have made in the labor market. Their entry into paid work has been a major factor in America's prosperity over the past century and a quarter.
Despite this progress, evidence suggests that many women remain unable to achieve their goals. The gap in earnings between women and men, although smaller than it was years ago, is still significant; women continue to be underrepresented in certain industries and occupations; and too many women struggle to combine aspirations for work and family. Further advancement has been hampered by barriers to equal opportunity and workplace rules and norms that fail to support a reasonable work-life balance. If these obstacles persist, we will squander the potential of many of our citizens and incur a substantial loss to the productive capacity of our economy at a time when the aging of the population and weak productivity growth are already weighing on economic growth.
A historical perspective on women in the labor force
In the early 20th century, most women in the United States did not work outside the home, and those who did were primarily young and unmarried. In that era, just 20 percent of all women were "gainful workers," as the Census Bureau then categorized labor force participation outside the home, and only 5 percent of those married were categorized as such. Of course, these statistics somewhat understate the contributions of married women to the economy beyond housekeeping and childrearing, since women's work in the home often included work in family businesses and the home production of goods, such as agricultural products, for sale. Also, the aggregate statistics obscure the differential experience of women by race. African American women were about twice as likely to participate in the labor force as were white women at the time, largely because they were more likely to remain in the labor force after marriage.
If these obstacles persist, we will squander the potential of many of our citizens and incur a substantial loss to the productive capacity of our economy at a time when the aging of the population and weak productivity growth are already weighing on economic growth.
The fact that many women left work upon marriage reflected cultural norms, the nature of the work available to them, and legal strictures. The occupational choices of those young women who did work were severely circumscribed. Most women lacked significant education—and women with little education mostly toiled as piece workers in factories or as domestic workers, jobs that were dirty and often unsafe. Educated women were scarce. Fewer than 2 percent of all 18- to 24-year-olds were enrolled in an institution of higher education, and just one-third of those were women. Such women did not have to perform manual labor, but their choices were likewise constrained.
Despite the widespread sentiment against women, particularly married women, working outside the home and with the limited opportunities available to them, women did enter the labor force in greater numbers over this period, with participation rates reaching nearly 50 percent for single women by 1930 and nearly 12 percent for married women. This rise suggests that while the incentive—and in many cases the imperative—remained for women to drop out of the labor market at marriage when they could rely on their husband's income, mores were changing. Indeed, these years overlapped with the so-called first wave of the women's movement, when women came together to agitate for change on a variety of social issues, including suffrage and temperance, and which culminated in the ratification of the 19th Amendment in 1920 guaranteeing women the right to vote.
Between the 1930s and mid-1970s, women's participation in the economy continued to rise, with the gains primarily owing to an increase in work among married women. By 1970, 50 percent of single women and 40 percent of married women were participating in the labor force. Several factors contributed to this rise. First, with the advent of mass high school education, graduation rates rose substantially. At the same time, new technologies contributed to an increased demand for clerical workers, and these jobs were increasingly taken on by women. Moreover, because these jobs tended to be cleaner and safer, the stigma attached to work for a married woman diminished. And while there were still marriage bars that forced women out of the labor force, these formal barriers were gradually removed over the period following World War II.