Labor Force Supply Decisions of Rural Low-Income Mothers

Employment is crucial to the economic wellbeing of families. Using a multi-state sample of 412 rural low-income mothers, our study identifies factors influencing two employment decisions they make: labor force entry and number of hours supplied. A logistic regression model correctly predicted 80% of mothers' work participation decisions. Employed mothers were older, better educated, and less likely to suffer from depression; as well as, more likely to have a driver's license and receive child care assistance and the Earned Income Tax Credit. An estimated labor supply function explained 33% 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 they were willing to work.