Using a work-leisure diagram, explain how each of the factors below might alter either the indifference curves or the budget constraint of an individual woman and make her a labor force participant or increase her hours of work.
Besides carefully drawing your graph, explain in a few words what is going on in the graph.
1. “The real wage rates for women have been increasing steadily over the last few decades, which have raised female participation rates.”
2. “The preferences and attitudes of women towards participating in the labor market have been changing since the 1960s, which has raised female participation rates.”