Question 2 (20 marks) Table 2.2 shows the labour force participation rate of married women in Canada in 2017, as presented in class. a. Consider the adjusted difference from base group of 17.5 percentage points for the group with spouse's income between $10,000 to $24,999. Explain the significance of this estimate in plain words. (5 marks) b. Describe the estimated effect of spousal income on a married women's labour force participation. Does it support the income-leisure model? Why or why not? (5 marks) c. In addition to the variables included in the table (age, education, age of youngest children, spouse's income), provide an example of an observable variable that might affect the labour force participation of married women in Canada. Using the theory of labour supply, speculate on the effect of that variable. (5 marks) d. Countries with higher income per person tend to have higher female labour force participation rate and hours worked. Suppose an analyst says that the adjusted difference in female labor force participation rates between richer and poorer countries is smaller than the observed difference. Explain what the analyst means. (5 marks) [Hint: Think of factors, that are related to economic development, that also affect female labour force participation. The abstract of this paper might be of help too, but this is optional.] TABLE 2.2 Labour Force Participation Rates of Married Women, Canada 2017 Percentage of Participation Rate Raw Difference from Base Group Married Women All Women, Total 75.3 Age 20-24 1.1 89.4 N/A 25-34 18.9 84.4 -5.0 35-44 23.9 85.5 -3.9 45-54 24.0 84.8 -4.6 55-64 23.8 64.8 -24.6 65-69 8.4 27.5 -61.9 Age of youngest child, under 18 years old, at home No children under 18 60.1 70.9 N/A 0-5 years old 18.4 77.4 6.5 6-9 years old 7.7 84.6 13.7 10-15 years old 10.1 87.0 16.1 16-17 years old 3.7 86.3 15.4 Education 49.6 N/A Less than high school graduation 67.9 18.3 High school graduate or some post-secondary Non-university, post- secondary certificate University degree 77.8 28.2 83.7 34.1 Spouse's income None (or negative) 49.7 N/A $1-$9,999 62.0 12.3 $10,000-$24,999 78.6 28,9 $25,000-$49,999 82.3 32.6 $50,000-$74,999 87.1 37.4 $75,000-$99,999 86.3 36.6 8.2 23.6 30.7 37.6 18.0 8.7 9.1 18.2 17.1 12.4 Adjusted Difference from Base Group N/A -3.7 -3.0 -7.3 -22.3 -52.6 N/A -13.9 -5.4 -0.7 0.2 N/A 12.1 18.8 22.4 N/A 7.7 17.5 18.4 21.0 18.9 Non-university, post- secondary certificate University degree None (or negative) $1-$9,999 $10,000-$24,999 $25,000-$49,999 $50,000-$74,999 $75,000-$99,999 $100,000-$149,999 Over $150,000 30.7 37.6 18.0 8.7 9.1 17.1 12.4 10.7 5.7 77.8 83.7 Spouse's income 49.7 62.0 78.6 82.3 87.1 86.3 84.2 74.1 28.2 34.1 N/A 28.9 32.6 37.4 36.6 34.5 24.4 18.8 22.4 N/A 7.7 17.5 18.4 21.0 18.9 17.1 + mmmm Team Assignment 01 Additional Instructions 1. Short-answer responses The following aspects are expected to be present in short-answer responses in all assessments. the response adheres to the requested paragraph format and length. the content of the paragraphs answers the question. iv. the content of the paragraphs displays an adequate understanding of course concepts. the content of the paragraphs is readable (well organized by thought, smooth transition between ideas, clear sentences, absence of meaning-impeding grammatical errors) the content of the paragraphs displays reflection and critical thought. vi. the content of the paragraphs includes association of ideas in a creative way. Question 2 (20 marks) Table 2.2 shows the labour force participation rate of married women in Canada in 2017, as presented in class. a. Consider the adjusted difference from base group of 17.5 percentage points for the group with spouse's income between $10,000 to $24,999. Explain the significance of this estimate in plain words. (5 marks) b. Describe the estimated effect of spousal income on a married women's labour force participation. Does it support the income-leisure model? Why or why not? (5 marks) c. In addition to the variables included in the table (age, education, age of youngest children, spouse's income), provide an example of an observable variable that might affect the labour force participation of married women in Canada. Using the theory of labour supply, speculate on the effect of that variable. (5 marks) d. Countries with higher income per person tend to have higher female labour force participation rate and hours worked. Suppose an analyst says that the adjusted difference in female labor force participation rates between richer and poorer countries is smaller than the observed difference. Explain what the analyst means. (5 marks) [Hint: Think of factors, that are related to economic development, that also affect female labour force participation. The abstract of this paper might be of help too, but this is optional.] TABLE 2.2 Labour Force Participation Rates of Married Women, Canada 2017 Percentage of Participation Rate Raw Difference from Base Group Married Women All Women, Total 75.3 Age 20-24 1.1 89.4 N/A 25-34 18.9 84.4 -5.0 35-44 23.9 85.5 -3.9 45-54 24.0 84.8 -4.6 55-64 23.8 64.8 -24.6 65-69 8.4 27.5 -61.9 Age of youngest child, under 18 years old, at home No children under 18 60.1 70.9 N/A 0-5 years old 18.4 77.4 6.5 6-9 years old 7.7 84.6 13.7 10-15 years old 10.1 87.0 16.1 16-17 years old 3.7 86.3 15.4 Education 49.6 N/A Less than high school graduation 67.9 18.3 High school graduate or some post-secondary Non-university, post- secondary certificate University degree 77.8 28.2 83.7 34.1 Spouse's income None (or negative) 49.7 N/A $1-$9,999 62.0 12.3 $10,000-$24,999 78.6 28,9 $25,000-$49,999 82.3 32.6 $50,000-$74,999 87.1 37.4 $75,000-$99,999 86.3 36.6 8.2 23.6 30.7 37.6 18.0 8.7 9.1 18.2 17.1 12.4 Adjusted Difference from Base Group N/A -3.7 -3.0 -7.3 -22.3 -52.6 N/A -13.9 -5.4 -0.7 0.2 N/A 12.1 18.8 22.4 N/A 7.7 17.5 18.4 21.0 18.9 Non-university, post- secondary certificate University degree None (or negative) $1-$9,999 $10,000-$24,999 $25,000-$49,999 $50,000-$74,999 $75,000-$99,999 $100,000-$149,999 Over $150,000 30.7 37.6 18.0 8.7 9.1 17.1 12.4 10.7 5.7 77.8 83.7 Spouse's income 49.7 62.0 78.6 82.3 87.1 86.3 84.2 74.1 28.2 34.1 N/A 28.9 32.6 37.4 36.6 34.5 24.4 18.8 22.4 N/A 7.7 17.5 18.4 21.0 18.9 17.1 + mmmm Team Assignment 01 Additional Instructions 1. Short-answer responses The following aspects are expected to be present in short-answer responses in all assessments. the response adheres to the requested paragraph format and length. the content of the paragraphs answers the question. iv. the content of the paragraphs displays an adequate understanding of course concepts. the content of the paragraphs is readable (well organized by thought, smooth transition between ideas, clear sentences, absence of meaning-impeding grammatical errors) the content of the paragraphs displays reflection and critical thought. vi. the content of the paragraphs includes association of ideas in a creative way