Labor Force Participation And Poverty Status Among Rural And Urban Women Who Head Families

This paper examines differentials in the propensity to be living in poverty among women who head families with minor children. Characteristics of mothers are examined for four subgroups: residents of central cities, suburbs, small towns, and rural areas. Using Public Use Microdata Sample data from the 1980 Census, results are presented using Multiple Classification Analysis. After controlling for the effects of mother's race, marital status, education, work status, and ages of her children, single mothers in central cities and smaIl towns have the highest rates of poverty (48% and 45% respectively), closely followed by those in rural areas (41%). Suburban single mothers are least likely to live in poverty (33%). Results show that employment status is the strongest predictor of poverty, followed by education and marital status. A subanalysis of women who work full‐time reveals major differences in earned income, with suburban women earning the highest incomes, followed by women living in central cities, then rural areas and, finally, small towns. A decomposition of this difference reveals that about two‐thirds of the difference is due to pay scales, and only one‐third due to the structure of occupational opportunity.