By Paul Hodges
Working women supercharged western economic growth from the 1980s, as they created the phenomenon of dual-income households for the first time in history. But today, this trend is reversing as women’s participation rates decline and their earnings plateau relative to men.
This major change risks undermining a key part of the US Federal Reserve’s strategy, which assumes that reducing the US unemployment rate to 6.5 per cent will help restore economic growth. The chart shows the reversal now underway: