We have noticed that in United States, many women quit their job and become housewife when they have children. One question come up: Is it children a significantly factor that affect the female labor supply?
In order to justify my assumption, some data would help to show the relevant between factors. I would choose variable SEX to find out the woman labors and LABFORCE to show there unemployment situation. First, number of own children in household (NCHILD). The variable “number of own children under age 5(NCHILD5)” is to check whether the dependent child affect female labor supply. To explore whether divorced woman or widow have more pressure to work, marital status (MARST) can help to analyst. In addition, some variables should also be considered in the model like “welfare (public assistance) income(INCWELFR)” ,“ Received transportation assistance(TRANSAID)”. Which should also be tested to avoid omitted bias.
