Some Direct Evidence on the Importance of Borrowing Constraints to the Labor Force Participation of Married Women
This paper examines the link between credit availability and the labor supply decisions of married women. In particular, it uses data from the Survey of Consumer Finances to test the role of some direct measures of borrowing constraints in a standard labor force participation equation. Although imperfect capital markets may alter the options available to households in a life-cycle context, the results suggest that borrowing constraints are of little importance to the labor force participation decisions of married women.
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