Single Mothers and Work
In: Socio-economic review, Band 2, Heft 2, S. 285-313
ISSN: 1475-1461
Western countries differ greatly in the extent to which single mothers participate in the labor market. Using LIS data for 15 countries, I propose & estimate a simple structural model of labor supply that incorporates the main variables that influence the work decision for single mothers. The results suggest that a large part of the cross-country variation in the employment rates of single mothers can be explained by their different demographic characteristics & by the variation in expected income in the in-work vs out-of-work states. Women with higher expected earnings are more likely to work. Higher in-work benefits encourage employment. Single mothers with higher income from other sources, including child support, are less likely to work. Even after demographic & income variables are controlled for, the country dummies remain significant. This indicates that other variables not explicitly incorporated in the model, such as child care arrangements or social & cultural backgrounds, may also play a relevant role. 10 Tables, 1 Appendix, 24 References. Adapted from the source document.