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Labor Supply Decisions of Rural Low-Income Mothers

Author

Listed:
  • Mammen, Sheila
  • Lass, Daniel A.
  • Seiling, Sharon B.

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.

Suggested Citation

  • Mammen, Sheila & Lass, Daniel A. & Seiling, Sharon B., 2007. "Labor Supply Decisions of Rural Low-Income Mothers," Working Paper Series 7381, University of Massachusetts, Amherst, Department of Resource Economics.
    • Handle: RePEc:ags:umamwp:7381
    DOI: 10.22004/ag.econ.7381
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    References listed on IDEAS

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