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The Impact of Agriculture and Farm Produce Prices on Human Capital Formation: Education Decisions of Young Americans in Agricultural Areas Before and During the Food Crisis 2000-2010

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  • Thomson, Henry
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    Abstract

    This study estimates the short-run effects of the structure of the local economy on high school dropout rates in agricultural areas in the United States from 2000 to 2010. Repeated cross-sections of census data are matched to state-level agricultural price indices and data on the regional composition of employment. Some authors theorise that human capital and land are substitutes, and increasing returns to land-intensive activities may lower human capital investments. I do not find empirical evidence of this in the rural United States. In fact, I find some evidence that as agriculture becomes more lucrative young people in areas with very high levels of agricultural employment become more likely to stay in school, not less, relative to those in areas with little or no agriculture within each state.

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    Bibliographic Info

    Paper provided by University of Minnesota, Department of Applied Economics in its series Master's Theses with number 148745.

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    Date of creation: Apr 2013
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    Handle: RePEc:ags:umapmt:148745

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    Keywords: Labor and Human Capital;

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    1. Claude Montmarquette & Nathalie Viennot-Briot & Marcel Dagenais, 2007. "Dropout, School Performance, and Working while in School," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 752-760, November.
    2. McGranahan, David A., 2004. "The Persistence of County High School Dropout Rates in the Rural South, 1970-2000," The Review of Regional Studies, Southern Regional Science Association, vol. 34(3), pages 288-302.
    3. Oded Galor & Omar Moav & Dietrich Vollrath, 2006. "Inequality in Land Ownership, the Emergence of Human Capital Promoting Institutions, and the Great Divergence," DEGIT Conference Papers c011_001, DEGIT, Dynamics, Economic Growth, and International Trade.
    4. Nils-Petter Lagerlöf, 2006. "The Galor-Weil Model Revisited: A Quantitative Exercise," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 9(1), pages 116-142, January.
    5. David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September.
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