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How Much Does Local Job Growth Improve Employment Outcomes of the Rural Working Poor?

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  • Davis, Elizabeth E.

    (University of Minnesota, St. Paul)

  • Weber, Bruce A.

    (Oregon State University)

Abstract

Using administrative data from Oregon, the study analyzes the impact of local labor market conditions on the employment and earnings of low-income adults. The study finds that local job growth helps the working poor, resulting in higher earnings, more frequent employment, and more quarters with earnings above the poverty level. However, the evidence suggests that the effect of local job growth on employment outcomes may be weaker in rural areas than in urban areas. This finding raises concerns about the ability of low-income adults (including former welfare recipients) to achieve economic self-sufficiency in rural areas.

Suggested Citation

  • Davis, Elizabeth E. & Weber, Bruce A., 2002. "How Much Does Local Job Growth Improve Employment Outcomes of the Rural Working Poor?," The Review of Regional Studies, Southern Regional Science Association, vol. 32(2), pages 255-274, Summer/Fa.
    • Handle: RePEc:rre:publsh:v:32:y:2002:i:2:p:255-274
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    References listed on IDEAS

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    1. Timothy J. Bartik & Randall W. Eberts, 199. "Examining the Effect of Industry Trends and Structure on Welfare Caseloads," Book chapters authored by Upjohn Institute researchers, in: Sheldon H. Danziger (ed.), Economic Conditions and Welfare Reform, chapter 5, pages 119-157, W.E. Upjohn Institute for Employment Research.
    2. Bradford F. Mills, 2000. "Are Spells of Unemployment Longer in Nonmetropolitan Areas? Nonparametric and Semiparametric Evidence," Journal of Regional Science, Wiley Blackwell, vol. 40(4), pages 697-718, November.
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    4. Jill L. Findeis & Leif Jensen, 1998. "Employment Opportunities in Rural Areas: Implications for Poverty in a Changing Policy Environment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1000-1007.
    5. Rebecca M. Blank, 2001. "What Causes Public Assistance Caseloads to Grow?," Journal of Human Resources, University of Wisconsin Press, vol. 36(1), pages 85-118.
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    7. James P. Ziliak & David N. Figlio & Elizabeth E. Davis & Laura S. Connolly, 2000. "Accounting for the Decline in AFDC Caseloads: Welfare Reform or the Economy?," Journal of Human Resources, University of Wisconsin Press, vol. 35(3), pages 570-586.
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    Cited by:

    1. Mark D. Partridge & Dan S. Rickman, 2005. "High-Poverty Nonmetropolitan Counties in America: Can Economic Development Help?," International Regional Science Review, , vol. 28(4), pages 415-440, October.
    2. Bruce Weber & Mark Edwards & Greg Duncan, 2004. "Single Mother Work and Poverty under Welfare Reform: Are Policy Impacts Different in Rural Areas?," Eastern Economic Journal, Eastern Economic Association, vol. 30(1), pages 31-51, Winter.
    3. 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.
    4. Davis, Elizabeth E. & Bosley, Stacie A., 2005. "THE IMPACT OF THE 1990s ECONOMIC BOOM ON LESS-EDUCATED WORKERS IN RURAL AMERICA," Working Papers 18918, Oregon State University, Rural Poverty Research Center (RPRC).
    5. Brian E. Whitacre & David Shideler & Randi Williams, 2016. "Do Incentive Programs Cause Growth? The Case of the Oklahoma Quality Jobs Program and Community-Level Economic Growth," Economic Development Quarterly, , vol. 30(1), pages 62-74, February.
    6. Weber, Bruce A. & Jensen, Leif, 2004. "Poverty And Place: A Critical Review Of Rural Poverty Literature," Working Papers 18913, Oregon State University, Rural Poverty Research Center (RPRC).
    7. Davis, Elizabeth E. & Connolly, Laura S. & Weber, Bruce A., 2003. "Local Labor Market Conditions and the Jobless Poor: How Much Does Local Job Growth Help in Rural Areas?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(3), pages 1-16, December.
    8. Mark D. Partridge & Dan S. Rickman, 2008. "Distance From Urban Agglomeration Economies And Rural Poverty," Journal of Regional Science, Wiley Blackwell, vol. 48(2), pages 285-310, May.
    9. Crandall, Mindy S. & Weber, Bruce A., 2005. "Trickling Down: Does Local Job Growth Reduce Poverty?," Working Papers 18915, Oregon State University, Rural Poverty Research Center (RPRC).
    10. Harrison, Jane L. & Montgomery, Claire A. & Jeanty, P. Wilner, 2019. "A spatial, simultaneous model of social capital and poverty," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 78(C), pages 183-192.
    11. Indunil De Silva, 2013. "Endowments Versus Returns: Counterfactual Quantile Decomposition Of Urban–Rural Inequality In Sri Lanka," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 25(1), pages 47-60, March.

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