The Labor Supply of Female Heads of Household: Comparisons With Male Heads and Wives*

Abstract

This paper compares a model of labor supply for female heads of household, male heads, and wives. Not only have female‐headed households increased significantly as a proportion of all households in recent years, but these households are also more likely to be in poverty than are other households. Yet, the determinants of labor supply for this increasingly important demographic group still are largely unknown. Analyses are performed on a sample of employed female and male heads and wives from the 1976 Survey of Income and Education. We examine the effects of wages, unearned income, number of children, and several other variables on hours worked per year, allowing for race interactions. We find that female heads and wives are similar in the effects of wages on their labor supply, while female and male heads are similar in the positive effect of children. We conclude that although financial need, as evidenced by low wages and children, increases female heads’labor supply, employment in more advantaged, non‐female dominated jobs and core industries is needed to promote their full participation in the labor force.