Female participation and labor market attachment in rural Canada

Abstract

This article explores the reasons for differences in female rural-urban participation rates by estimating a dynamic model of participation allowing for unobserved heterogeneity and state dependence using Canadian panel data. The results suggest that overall observed differences in rural-urban participation rates are primarily due to differences in observed socioeconomic characteristics. However, for women resident in low-income households, there is evidence that the operation of rural labor markets effectively lowers their participation rates.