Labor Supply Decisions of Rural Low-Income Mothers

Sheila Mammen (), Daniel Lass () and Sharon Seiling ()
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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 Seiling: Department of Consumer Sciences, Ohio State University

No 2007-12, Working Papers from University of Massachusetts Amherst, Department of Resource Economics

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.

Keywords: Rural Low-income Mothers; Labor Force Participation; Women’s Labor Supply; Welfare Reform (search for similar items in EconPapers)
JEL-codes: D13 I38 J24 R29 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2007-11
New Economics Papers: this item is included in nep-agr and nep-lab
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