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Labor Supply Decisions of Rural Low-Income Mothers

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  • Sheila Mammen

    ()
    (Department of Resource Economics, University of Massachusetts Amherst)

  • Daniel Lass

    ()
    (Department of Resource Economics, University of Massachusetts Amherst)

  • Sharon B. Seiling

    ()
    (Department of Consumer Sciences, Ohio State University)

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    Abstract

    Labor force participation is crucial to the economic well-being of low-income rural families. This study identified the factors that influence two decisions that low-income rural mothers make regarding their employment: labor force entry and number of hours supplied to employment. The sample consisted of 412 rural low-income mothers who participated in a multi-state study. The logistic regression model correctly predicted 80 percent of their work participation decisions. Employed rural mothers appeared to be older, better educated, and less likely to suffer from depression compared to those not working. Additionally, they were more likely to have an employed partner, a driver’s license, child care assistance, and Earned Income Tax Credit from the previous year. The estimated labor supply function explained 33 percent of the variation in hours worked by the 208 employed rural mothers. Higher wages, availability of health insurance, and overtime benefits predicted the number of hours that these employed mothers were willing to work.

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    File URL: http://courses.umass.edu/resec/workingpapers/documents/ResEcWorkingPaper2007-12.pdf
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    Bibliographic Info

    Paper provided by University of Massachusetts Amherst, Department of Resource Economics in its series Working Papers with number 2007-12.

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    Length: 36 pages
    Date of creation: Nov 2007
    Date of revision:
    Handle: RePEc:dre:wpaper:2007-12

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    Web page: http://www.umass.edu/resec/
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    Related research

    Keywords: Rural Low-income Mothers; Labor Force Participation; Women’s Labor Supply; Welfare Reform;

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    1. Gregory Acs & Pamela Loprest, 1999. "The effect of disabilities on exits from AFDC," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(1), pages 28-49.
    2. Jane Wheelock & Elizabeth Oughton & Susan Baines, 2003. "Getting By with a Little Help from Your Family: Toward a Policy-Relevant Model of the Household," Feminist Economics, Taylor & Francis Journals, vol. 9(1), pages 19-45.
    3. Michelle M. Livermore & Rebecca S. Powers, 2006. "Employment of Unwed Mothers: The Role of Government and Social Support," Journal of Family and Economic Issues, Springer, vol. 27(3), pages 479-494, September.
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