However, the tax credits for dependent spouses and cash transfers continue to generate the positive correlation between labor force participation and husband's income.
This paper examines the extent to which the local human capital level, measured as the share of adults with a college degree, has positive external effects on labor force participation and employment for U.S. metropolitan area residents.
Another factor explaining labor market conditions showing significant but positive effect is the labor force participation rate of females.
Given the evidence of positive selection into the labor force for women (Olivetti and Petrongolo, 2008), we should also expect the latter group of women will be more likely to engage in the labor force than the former, biasing the estimates of the effect of grandparents' childcare on young women's labor force participation downwards.
Relating this to immigrant women from countries with more traditional gender roles, this would imply that they "learn" about the positive aspects of female labor force participation over time so that their labor supply would increase with the time spent in the hosting country.
Interestingly, we find positive effects on children's labor force participation decisions.
We enrich their results by showing that the model is able to reproduce the positive correlation between wife's labor force participation rate and husband's income.
Cross-country studies reveal a positive correlation between fertility and labor force participation since the 1980s (Adsera 2004; Brewster and Rindfuss 2000).
We defined employment as working-age population between the ages of 15 and 64 who are employed in the civilian labor force, report positive annual earnings, are not self-employed, and not enrolled in school.
For example, using the NLSY79, Leibowitz et al. (1992) find a marginally significant and positive correlation between mother's labor force participation and having a grandmother living in the household.
