Why Aren’t More Women Working?

American women have long been near the top of global rankings in educational achievement, workforce participation, and career advancement. But since 2000, women who are between their student years and retirement are increasingly dropping out of the labor force, even as more and more complete college. Just as notable is that the opposite is happening with working-age women around the world, whether they're in prosperous economies with generous family support programs, nations hard-hit by recession, or countries with more traditional notions of gender roles. To economists, this is a surprise because rising education is strongly correlated with labor force participation. Sometimes the labor force participation rate can fall for demographic reasons, like a rising share of retirees or of young people who continue studies before starting work. But if it affects people, whether men or women, in their prime working years especially, it could have important macroeconomic consequences. Whether diminished female labor force participation is a drag on US growth is something economists will continue to debate.