Explaining the Black-White Gap in Labor Force Participation among Women Heading Households

Abstract

For the first time in this century, Black women are participating in the labor force at lower rates than are White women. The Black-White gap in female labor force participation is driven by those in the severest need of income-women heading households. I compare three explanations of the Black-White gap in labor force participation among female household heads-lack of human capital, lack of opportunities resulting from industrial restructuring, and disarticulation from mainstream institutions as described by theories of the underclass. Using a representative national sample from the Panel Study of Income Dynamics, I find that lower rates of labor force participation among Black women heading households are determined by Black-White differences in human capital as well as by characteristics associated with a breakdown in the processes linking Black women to the labor market. Overall, the largest impediments to labor force participation among women heading households are dropping out of high school, having a child under the age of six in the household, and being a long-term welfare recipient.