Employment From 1968 To 2000 Term Paper

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Employment From 1968 to 2000

According to Lee and Wolpin (2005), there was an increase in white-collar employment and a reduction in blue-collar employment economy wide- during the years 1968-2000. The proportion of workers employed in white-collar production increased from 27 to 40% and then gradually grew in a steadily peaking line.

Part of the reason, as Lee and Wolpin (2005) observes, for the positive association of growth in employment factors. was that more students entered and left college during these periods and more of them found jobs. The employment market in the 1968 -- 1974 period was comprised of only about 17% of college graduates that grew to 24% by 1980-84 and 27% by 1995-2000.

Another explanation for the rise in employment was the increasing inclusion of females in the market, both by themselves and relative to males, and this trend was also encouraged by growing increase in the female-to-male wage ratio.

At the same time, the production sector of the economy was undergoing a major shift, and as is still occurring with prediction of this trend continuing to grow unabated, the U.S. economy has shifted from a goods-producing economy to a service- reducing market particularly in the area of knowledge management / technology. With the introduction of the computer in the 1980s, the information sector dominated economy as a desired service and its appeal has risen ever since.

As the Table shows, there was a deep 1980s recession and then a more shallow 1990s downturn, but following each of these drifts the employment trend again began to rise encouraged by innovation in the IT sector.

In short, the reasons given for the rise in employment during these years is: 1. Increased wages; 2. Rise in college gradates; 3. Increase in female employment; and 4. The rise of the service sector (particularly IT). This rise in employment, with breaks in the 1980s and a more subdued drop in the 1990s indicate this pattern.

Reference

Lee, D. & Wolpin, K.I. (2005). Accounting for wage and employment changes in the U.S. from 1968-2000: A dynamic model of labor market equilibrium,

Retrieved from http://econ.duke.edu/~psarcidi/doghoon_paper.pdf

Table Indicating Pattern of Employment: 1968-2000

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