Female Participation and Labor Market Attachment in Rural Canada

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.