IDEAS home Printed from https://ideas.repec.org/a/sae/inrsre/v31y2008i3p275-303.html
   My bibliography  Save this article

Poverty in Michigan Small Communities

Author

Listed:
  • Denys Nizalov

    (Kyiv Economic Institute and Kyiv School of Economics, Kiev, Ukraine, nizalov@kse.org.ua)

  • A. Allan Schmid

    (Michigan State University, East Lansing, schmid@msu.edu)

Abstract

This article assesses the effect of labor demand and labor supply conditions on distribution of poverty across small communities in Michigan. The poverty model used for the analysis is based on the production behavior of the communities' residents, and is estimated using Census 2000 data. The difference in regional poverty rates is explained primarily by variation in the quality and quantity of communities' labor supply. Significant differences among rural, metropolitan, and metropolitan-adjacent communities are detected in determinants of poverty. In particular, a weak labor demand contributes to higher rates of rural poverty. Moreover, poverty rates are more persistent in rural areas and small towns. A higher average age of labor force is associated with a decrease in poverty rates. However, this effect becomes evident only after the ages of thirty-five to thirty-seven in rural areas, implying a slower accumulation of experience than in urban areas. Results imply that urban and rural poverty should be treated with area-specific policies that accommodate the difference in sources of poverty.

Suggested Citation

  • Denys Nizalov & A. Allan Schmid, 2008. "Poverty in Michigan Small Communities," International Regional Science Review, , vol. 31(3), pages 275-303, July.
    • Handle: RePEc:sae:inrsre:v:31:y:2008:i:3:p:275-303
    DOI: 10.1177/0160017608318955
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0160017608318955
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0160017608318955?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rebecca M. Blank, 2005. "Poverty, Policy, and Place: How Poverty and Policies to Alleviate Poverty Are Shaped by Local Characteristics," International Regional Science Review, , vol. 28(4), pages 441-464, October.
    2. 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).
    3. Bruce Weber & Leif Jensen & Kathleen Miller & Jane Mosley & Monica Fisher, 2005. "A Critical Review of Rural Poverty Literature: Is There Truly a Rural Effect?," International Regional Science Review, , vol. 28(4), pages 381-414, October.
    4. Lipton, Michael & Ravallion, Martin, 1995. "Poverty and policy," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657, Elsevier.
    5. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    6. Robert K. Triest, 1997. "Regional differences in family poverty," New England Economic Review, Federal Reserve Bank of Boston, issue Jan, pages 3-17.
    7. Marianne Bertrand & Sendhil Mullainathan & Eldar Shafir, 2004. "A Behavioral-Economics View of Poverty," American Economic Review, American Economic Association, vol. 94(2), pages 419-423, May.
    8. Crandall, Mindy S. & Weber, Bruce A., 2004. "Local Social And Economic Conditions, Spatial Concentrations Of Poverty, And Poverty Dynamics," Working Papers 18916, Oregon State University, Rural Poverty Research Center (RPRC).
    9. Forni, Mario & Lippi, Marco, 1997. "Aggregation and the Microfoundations of Dynamic Macroeconomics," OUP Catalogue, Oxford University Press, number 9780198288008, Decembrie.
    10. Strauss, John & Thomas, Duncan, 1995. "Human resources: Empirical modeling of household and family decisions," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 34, pages 1883-2023, Elsevier.
    11. Timothy J. Bartik, 2001. "Jobs for the Poor: Can Labor Demand Policies Help?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number tjb2001, November.
    12. repec:rri:bkchap:22 is not listed on IDEAS
    13. William Levernier & Mark D. Partridge & Dan S. Rickman, 2000. "The Causes of Regional Variations in U.S. Poverty: A Cross‐County Analysis," Journal of Regional Science, Wiley Blackwell, vol. 40(3), pages 473-497, August.
    14. Stephen J. Goetz, 1999. "Migration and Local Labor Markets," Wholbk, Regional Research Institute, West Virginia University, number 22, July-Sept.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peters, David J., 2013. "Understanding the Poverty U-turn Across Geographic Scales in the American Midwest, 1980-2010," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 43(2).
    2. David J. Peters, 2011. "Place-Based Income Inequality Clusters in the Rural North Central Region, 1979–2009," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(2), pages 222-240.
    3. Barbara A. Haley, 2017. "Does Stigma Inhibit Labor Force Participation of Young Millennials Who Receive Housing Assistance?," Poverty & Public Policy, John Wiley & Sons, vol. 9(1), pages 71-95, March.
    4. Linda Lobao & P. Wilner Jeanty & Mark Partridge & David Kraybill, 2012. "Poverty and Place across the United States," International Regional Science Review, , vol. 35(2), pages 158-187, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nizalov, Denys & Schmid, A. Allan, 2004. "Regional Poverty In Michigan: Rural And Urban Difference," Staff Paper Series 11782, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Linda Lobao & P. Wilner Jeanty & Mark Partridge & David Kraybill, 2012. "Poverty and Place across the United States," International Regional Science Review, , vol. 35(2), pages 158-187, April.
    3. 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.
    4. Mark D. Partridge & Dan S. Rickman & M. Rose Olfert & Ying Tan, 2015. "When Spatial Equilibrium Fails: Is Place-Based Policy Second Best?," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1303-1325, August.
    5. Christopher S. Fowler & Rachel Garshick Kleit, 2014. "The Effects of Industrial Clusters on the Poverty Rate," Economic Geography, Clark University, vol. 90(2), pages 129-154, April.
    6. Peters, David J., 2013. "Understanding the Poverty U-turn Across Geographic Scales in the American Midwest, 1980-2010," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 43(2).
    7. David J. Peters, 2011. "Place-Based Income Inequality Clusters in the Rural North Central Region, 1979–2009," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(2), pages 222-240.
    8. Mengisteab Chokie & Mark D. Partridge, 2008. "Low‐Income Dynamics in Canadian Communities: A Place‐Based Approach," Growth and Change, Wiley Blackwell, vol. 39(2), pages 313-340, June.
    9. Bruce Weber & Leif Jensen & Kathleen Miller & Jane Mosley & Monica Fisher, 2005. "A Critical Review of Rural Poverty Literature: Is There Truly a Rural Effect?," International Regional Science Review, , vol. 28(4), pages 381-414, October.
    10. David J. Peters, 2009. "Typology of American Poverty," International Regional Science Review, , vol. 32(1), pages 19-39, January.
    11. M. Rose Olfert & Mark D. Partridge, 2010. "Best Practices in Twenty‐First‐Century Rural Development and Policy," Growth and Change, Wiley Blackwell, vol. 41(2), pages 147-164, June.
    12. 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).
    13. Thomas A. Knapp & Nancy E. White, 2016. "The Effect Of Youth Poverty Rates And Migration On Adult Wages," Journal of Regional Science, Wiley Blackwell, vol. 56(2), pages 239-256, March.
    14. Suhyun Jung & Seong-Hoon Cho & Roland K. Roberts, 2015. "The impact of government funding of poverty reduction programmes," Papers in Regional Science, Wiley Blackwell, vol. 94(3), pages 653-675, August.
    15. 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.
    16. Mark D. Partridge & Dan S. Rickman, 2007. "Persistent Rural Poverty: Is It Simply Remoteness and Scale?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(3), pages 430-436.
    17. Bedi, Arjun S. & Marshall, Jeffery H., 2002. "Primary school attendance in Honduras," Journal of Development Economics, Elsevier, vol. 69(1), pages 129-153, October.
    18. Khatiwada, Lila K., 2014. "Modeling and Explaining County-level Prosperity in the U.S," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 44(2).
    19. van de Walle, Dominique, 1998. "Assessing the welfare impacts of public spending," World Development, Elsevier, vol. 26(3), pages 365-379, March.
    20. Haddad, Lawrence James & Peña, Christine & Nishida, Chizuru & Quisumbing, Agnes R. & Slack, Alison T., 1996. "Food security and nutrition implications of intrahousehold bias," FCND discussion papers 19, International Food Policy Research Institute (IFPRI).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:inrsre:v:31:y:2008:i:3:p:275-303. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.