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Regional Poverty In Michigan: Rural And Urban Difference

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Author Info
Nizalov, Denys
Schmid, A. Allan

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Abstract

This paper examines the relationship between the quality of local labor force and variation in regional poverty outcomes among Michigan areas. A regional poverty model is derived from the household production model for that purpose. The US Census 2000 data on small geographical areas of Michigan (Census Block Groups) is used for the analysis. It is found that the difference in regional poverty is explained primarily by differences in quality and quantity of labor available to a household. Second, heterogeneity of the model is detected with respect to a degree of urbanization. Also, the relation between average income and regional poverty is found to be nonlinear and distribution of income playing a major role in explanation poverty. Higher poverty rates in rural areas tend to persist over time.

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Paper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Staff Papers with number 11782.

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Date of creation: 2004
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Handle: RePEc:ags:midasp:11782

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Keywords: Community/Rural/Urban Development;

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References listed on IDEAS
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  1. Elizabeth T. Powers & Max Dupuy, 1994. "Understanding differences in regional poverty rates," Economic Commentary, Federal Reserve Bank of Cleveland, issue Nov 15. [Downloadable!]
  2. 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. [Downloadable!] (restricted)
  3. Raphael, Steven & Rice, Lorien, 2002. "Car ownership, employment, and earnings," Journal of Urban Economics, Elsevier, vol. 52(1), pages 109-130, July. [Downloadable!] (restricted)
  4. John Strauss & Duncan Thomas, 1998. "Health, Nutrition, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 766-817, June. [Downloadable!] (restricted)
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  5. Nizalov, Denys, 2003. "A Quantitative Assessment Of Factors Contributing To The Economic Growth Of Michigan Regions," Graduate Research Masters Degree Plan B Papers 10995, Michigan State University, Department of Agricultural, Food, and Resource Economics. [Downloadable!]
  6. Forni, Mario & Lippi, Marco, 1999. "Aggregation of linear dynamic microeconomic models," Journal of Mathematical Economics, Elsevier, vol. 31(1), pages 131-158, February. [Downloadable!] (restricted)
  7. 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. [Downloadable!] (restricted)
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  8. Jonathan Morduch, 1999. "The Microfinance Promise," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1569-1614, December. [Downloadable!] (restricted)
  9. Robert K. Triest, 1997. "Regional differences in family poverty," New England Economic Review, Federal Reserve Bank of Boston, issue Jan, pages 3-17. [Downloadable!]
  10. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August. [Downloadable!] (restricted)
  11. Jyotsna Jalan & Martin Ravallion, 1998. "Geographic Poverty Traps?," Boston University - Institute for Economic Development 86, Boston University, Institute for Economic Development.
  12. 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, Blackwell Publishing, vol. 40(3), pages 473-497. [Downloadable!] (restricted)
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