Labor supply of married foreign-born women in credit-constrained households

Seik Kim and Nalina Varanasi

Economic Modelling, 2019, vol. 81, issue C, 411-421

Abstract: In credit-constrained households, some family members who would otherwise not work participate in the labor market. This particular supply of labor, however, is expected to decrease when their families overcome credit constraints. To examine this family investment hypothesis, we develop a test which exploits the dynamic features of the labor supply of married foreign-born women in the United States. Empirical findings, based on the matched March Current Population Survey, are consistent with the hypothesis. This paper also finds that previous results which refute the hypothesis are reversed when the sample is confined to women working in low-skill jobs.

Keywords: Family investment hypothesis; Female labor supply; Immigration; Occupation mobility (search for similar items in EconPapers)
JEL-codes: J12 J24 J61 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:81:y:2019:i:c:p:411-421

DOI: 10.1016/j.econmod.2019.07.019

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