On the Empirical Finding of a Higher Risk of Poverty in Rural Areas: Is Rural Residence Endogenous to Poverty?
AbstractIncludes: On the Empirical Finding of a Higher Risk of Poverty in Rural Areas: Is Rural Residence Endogenous to Poverty?:COMMENT, by Thomas A. Hirschl; On the Empirical Finding of a Higher Risk of Poverty in Rural Areas: Is Rural Residence Endogenous to Poverty?: REPLY, by Monica Fisher. Research shows people are more likely to be poor in rural versus urban America. Does this phenomenon partly reflect that people who choose rural residence have unmeasured attributes related to human impoverishment? To address this question, two models are estimated using Panel Study of Income Dynamics data. A single equation Probit model of individual poverty replicates the well-documented finding of higher poverty risk in rural places. However, an instrumental variables approach, accounting for correlation between rural residence and the poverty equation error term, finds no measured effect of rural location on poverty. Results suggest failure to correct for endogeneity or omitted variable bias may overestimate the "rural effect."
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Bibliographic InfoArticle provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.
Volume (Year): 30 (2005)
Issue (Month): 02 (August)
endogeneity; instrumental variables; omitted variable bias; poverty; rural; Food Security and Poverty;
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- Sooriyakumar Krishnapillai & Henry Kinnucan, 2012. "The effects of automobile production and local government expenditure on poverty in alabama," Economics Bulletin, AccessEcon, vol. 32(3), pages 2136-2145.
- Marre, Alexander W., 2009. "Rural Out-Migration, Income, and Poverty: Are Those Who Move Truly Better Off?," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49346, Agricultural and Applied Economics Association.
- Gyawali, Buddhi Raj & Banerjee, Swagata (Ban) & Hill, Anquinette & Bukenya, James O., 2012. "Exploring Variations in Income Growth in Southeastern United States," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 120933, Southern Agricultural Economics Association.
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