In this paper a dynamic employment model for women is estimated for rural and urban samples from the first four years of the Survey of Labour and Income Dynamics 1993 to 1996. The results provide evidence that there are significant differences between rural and urban labour markets. However, these do not appear to arise - as is often argued - from a lack of childcare facilities, differences in returns to human capital, or the existence of more "traditional" attitudes to the proper role of women in rural areas. The results also suggest labour market segmentation within rural areas with clear differences in employment for women belonging to low income households as shown in the decomposition results.
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