What does a promotional model do?

To what extent can the neoclassical labour-leisure choice model explain trends in female participation rates?

• I am revising for an exam in labour economics and this is a question from a past paper. I'm trying to write a model answer, in case something similar comes up on the real exam. How would you answer the question? I was thinking: introduce the answer by giving a definition for the labour supply participation rate. Next, explain the labour supply model where workers make their decisions based upon utility maximization, and draw an indifference curve/budget line diagram to illustrate this idea. Then, once the model is explained, I could give some figures for female participation rates (I need to obtain and memorize these, in case this question comes up on this year's paper, but for simplicity's sake let's just say that female labour supply has increased massively over the past 50 years). I think this is where the crucial part of the question comes up, so some help here would be particularly helpful. I could then state and briefly explain the factors that affect labour supply for females (increase in wages over time, increased household productivity, reduced birthrates, and changes in cultural attitudes/legislation towards women in work), and then show whether (and if so, how) they would affect the position of the indifference curve and budget line. For example, an increase in wages would rotate/pivot the budget line upwards. I know that household productivity and reduced birthrates could be incorporated into the model, but could someone explain to me what effect they would have on the indifference curve and budget line? And I'm pretty sure that changes in cultural attitudes/legislation, although increasing the participation rates of women over time, couldn't be specifically incorporated into the model - is that right? So I'm thinking that a reasonable conclusion would be that the model can explain a number of the factors, although not all of them. What else would be important to include? I'm not sure whether writing about the backward-bending supply curve is necessary; what are your thoughts, based upon the question? Any help/suggestions/explanations would be greatly appreciated - I want to be as prepared as possible, should a question like this turn up. Thank you!

• Answer:

  I'm not sure that I completely understand what you are trying to convey, however, I would like to add that there are more women in college than men, and that has been happening now for some time. It is my theory that men are becoming complacent in our society, and becoming low achievers, due to their outlook and lackadaisical attitudes, of life in general. It has become more common place for the women to take charge and do everything, while the men lay back and do nothing! It is a downward trend that I do not see ending, anytime soon.