Question

Since the 1950s, there has been a steady increase in the U.S. labor force due to an increase in the number of women who choose to pursue an education and professional career. The opportunity for women to pursue this path was bolstered by labor-saving technologies used in the home, such as the dishwasher and washing machine. Industries previously dominated by men, such as the information technology Industry, have seen a significant increase in the number of female workers. The following graph shows the labor market for computer analysts in the United States Show the effect of the change in women's preferences toward education and work on the U.S. labor market for computer analysts by shifting the labor demand curve, the labor supply curve, or both Demand Supply LABOR

Answer 1

The labour market is in equilibrium with the demand for labour is equal to the supply of labour. Any change in demand or supply makes necessary changes in wage rate and the equilibrium quantity of labour demanded and supplied. A more preference of among the women for education and to work as computer analyst increases the number of labour force for computer analysts in U.S economy. Then the supply of labour for computer analysts increase and the supply curve shift to the right. This increased supply of labour lowers the equilibrium wage and increase the equilibrium quantity Supply Wage Demand labour The increase in supply of labour due to increased women participation shifts the supply curve for labour from S to S1. Consequently the wage rate falls from the previous level and the quantity of labour force demanded and supplied increases