Important Factors to Influence the Women Labor Supply in Relation to Annual Hours Worked by Married Women Research Paper

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The numbers of hours worked by married women annually are diverse, depending on the women’s living situations which can be discussed as significant factors to influence the female supply in the labor market. As a result, it is important to examine the factors which can affect the female supply related to the labor force because of the observed changes in the labor market and in women’s choices associated with working activities. Today, the researchers refer to the number of factors important to be taken into consideration while discussing the percent of married women participating in the labor market. These factors include the women’s age, education, number of children and their age, the received wage, the family income, the wage received by the husband, and the participation of husbands in the household activities (Blau & Kahn 2005; Lee & Tae 2005). The report aims to answer the question about the most important factors to influence the number of hours worked by the married women annually with references to the sample of 753 married women where 428 are working women and with the help of operating the appropriate models and tests’ results.

The women’s decisions to work as part-time or full-time employees depend on their living situations. Thus, many women are inclined to choose part-time or full-time jobs because of the family income factor in order to improve the economic situation in the family. In this case, the wage is discussed as the important factor to influence the number of hours worked annually (Neumark & Postlewaite 1998). However, the rates of women’s participation in the labor market can change significantly with references to the women’s age because this factor is closely associated with the aspect of having children (Omori & Smith 2010). If the family has one and more children who are younger than 6 years old, the possibility of the woman’s participation in the labor market decreases because of the necessity to take care for children. The situation changes when children become older because the fact of having 6-18 years old children influences the woman’ job choice insignificantly (Eckstein & Wolpin 1989; Taniguchi 1999).

Those women who have children or the lack of expertise in their sphere are inclined to choose not to work and pay attention more to the household activities. Nevertheless, the situation when husbands participate actively in performing household tasks can affect the woman’s decision to find a part-time or full-time job. It is also important to note that the focus on the part-time or full-time job depends on the fact of having children (Knight, Harris, & Loundes 2002).

In spite of the fact the general growth in working hours for women is not observed in the labor market, this situation can be discussed with references to the concrete situations. The increase in working hours is characteristic for women who have the higher education, high wages, and 6-18 years old children. On the contrary, the factor of the high husbands’ earnings can influence the situation in the female sector of the labor market negatively because many women are inclined to stay home and not to work (Hyslop 1999). Researchers also generalize the results in relation to the factors and state that the women’s age, education, and the fact of having children can be discussed as positive factors to affect the women’s participation in the labor force and market (Shaw 1994). Moreover, the high family income and the high husbands’ earnings influence the situation as the negative factors (Borjas 2003; Heckman 1993; Hersch & Stratton 2002).

Many factors can influence the supply of the female labor force with references to the definite number of married women. The data on the number of hours worked by 753 married women where 428 women work for a wage outside the home during the year were analyzed with the help of the linear probability model (by the OLS), logit model and probit model. It is possible to conclude that the logit and probit models are more suitable for the study analysis because basing on the OLS, the linear probability model can be discussed as rather biased. The results received with the help of the linear probability model are inconsistent because of the inappropriate manipulation of the data on such factors as education and the fact of having children younger than 6 years old. From this point, the logit and probit models are more effective for the analysis because of diminishing the partial effects. On the other hand, the linear probability model is easier to be used and interpreted to receive the concrete results.

The study results support the idea that the number of hours worked by the married women annually significantly depends on such factors as the fact of having children younger than 6 years old, the level of education, the wage received by women for their work, the wage received by husbands, and the general family income. Thus, those women who have children younger than 6 years old and husbands with high wages are inclined to work less or not work at all in comparison with the women facing other living situations. The next important factor is the age of a woman which becomes influential for the situation while being correlated with the fact of having young children.

References

Blau, F & Kahn, L 2005, ‘Changes in the labor supply of married women: 1980-2000’, NBER, vol. 1. no.1, pp. 12-24.

Borjas, G 2003, ‘The Labor Demand Curve is downward sloping: Reexamining the impact of immigration on the labor market’, Quarterly Journal of Economics, vol. 118. no. 1, pp. 1335-1374.

Eckstein, Z & Wolpin, K 1989, ‘Dynamic labour force participation of married women and endogenous work experience’, Review of Economic Studies, vol. 56. no. 1, pp. 375–390.

Heckman, J 1993, ‘What has been learned about labor supply in the past twenty years?’, American Economic Review, vol. 83. no. 2, pp. 116-121.

Hersch, J & Stratton, L 2002, ‘Housework and wages’, The Journal of Human Resources, vol. 37. no. 1, pp. 217-229.

Hyslop, D 1999, ‘State dependence, serial correlation and heterogeneity in intertemporal labor force participation of married women’, Econometrics, vol. 67. no. 3, pp. 1255–1294.

Knight, S, Harris, M, & Loundes, J 2002, ‘Dynamic relationship in Australian labour market: heterogeneity and state dependence’, Economic Record, vol. 78. no. 3, pp. 284–298.

Lee, M & Tae, Y 2005, ‘Analysis of labour force participation behaviour of Korean women with dynamic probit and conditional logit’, Oxford Bulletin of Economics and Statistics, vol. 67. no. 4, pp. 71–91.

Neumark, D & Postlewaite, A 1998, ‘Relative income concerns and the rise in married women’s employment’, Journal of Public Economics, vol. 70. no. 1, pp. 157-183.

Omori, M & Smith, D 2010, ‘Working and living: The effects of family responsibilities and characteristics on married women’s work hours in the USA’, Journal of Comparative Family Studies, vol. 41. no. 1, pp. 43-55.

Shaw, K 1994, ‘The persistence of female labor supply’, Journal of Human Resources, vol. 29. no. 3, pp. 348–378.

Taniguchi, H 1999, ‘The timing of childbearing and women’s wages’, Journal of Marriage and the Family, vol. 61. no. 1, pp. 1008-1019.

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