amilies live in the suburbs, have children younger than 18 years of age, and are headed by a 35-to-54 year old. Dual earner couples account for 26 percent of consumer spending, while single earner couples account for only nine-percent of consumer spending.
The increased importance of women to the labor market is not a phenomenon restricted to young and middle-aged women. Women are an increasingly important part of that part of the labor force aged 55 or older. In 1964, women made up 33 percent of this labor force. By 1992, this percentage had grown to 43 percent. The labor market experience and earnings of older women are substantial. On average, women reaching age 55 have worked over half of their adult lives. Market earnings for women aged 55 or older exceeded $119 billion in 1992.
Because older women are important to the labor market, and because their importance will almost certainly grow, it is necessary to understand the factors that shape the labor-force decisions and experiences of these individuals. Of primary importance is an understanding of the most fundamental labor-market decision older individuals make: the labor-force participation decision. This decision, the converse of which could be referred to as the retirement decision, has profound consequences for the individual and society. An individual's decision to leave the labor force leads to the loss of an important source of income (earnings), and thus affects the individual's well-being at the time and later in life. At the societal level, this action means that poverty patterns can be related to labor-force participation patterns. Further, at the societal level, labor-force participation patterns affect national output and the financial status of important government programs, such as Social Security.
Explanation of Changing Family Income Patterns Provided By Economic theory
One study included dual earner families in an examination of the poten...