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Labor Market Incentives to Stay in School

Author

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  • Stallmann, Judith I.
  • Johnson, Thomas G.
  • Mwachofi, Ari
  • Flora, Jan L.

Abstract

Human capital theory suggests that job opportunities will create incentives for human capital investment. If job information does not flow freely, or if they prefer not to move, students will make investment decisions based upon local job markets. Communities with a high percentage of low-skill jobs which do not reward high school and higher education do not create incentives for students to finish high school or continue beyond high school. Data from Virginia support this hypothesis. Targeted job creation, and improved labor market information may create incentives for increased human capital investment in many rural communities.

Suggested Citation

  • Stallmann, Judith I. & Johnson, Thomas G. & Mwachofi, Ari & Flora, Jan L., 1993. "Labor Market Incentives to Stay in School," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 25(2), pages 82-94, December.
    • Handle: RePEc:cup:jagaec:v:25:y:1993:i:02:p:82-94_01
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    Cited by:

    1. Danielle Christine Rhubart, 2017. "Identifying Associations Between State Medicaid Expansion Decisions and Spatial Disparities in County Insurance Rate Changes Under the Affordable Care Act," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 36(1), pages 109-135, February.
    2. Claude DIEBOLT & Magali JAOUL-GRAMMARE, 2019. "The Cliometric Model of Glutting: An Experimental Analysis," Working Papers of BETA 2019-01, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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