Cross-sectional data suggest that all else equal:
A)the male labor force participation rate varies inversely with education
B)the labor force participation rate of single women varies inversely with the reservation wage
C)the labor force participation rate of married men varies inversely with the number of children in the household
D)the labor force participation rate of married women varies inversely with the husband's income

Question

Quizplus · Accepted Answer

Cross-sectional data often show that the labor force participation rate of married women tends to decrease as their husband's income increases. This is because higher household income can reduce the financial necessity for both spouses to work, allowing one spouse (often the woman in traditional family structures) to opt out of the labor force if they choose.

Cross-Sectional Data Suggest That All Else Equal