A human capital investment model of migration is applied to data on changes in county working- age populations. Counties having more highly educated populations grew more slowly. While human capital raises rural incomes, this effect is swamped by the higher returns to human capital in urban markets. This leads to "brain drain" from rural areas. Other results include: 1) Populations grow more rapidly in rural counties that have a diversified employment base. 2) Farm population grows faster (or declines more slowly) in counties with relatively high farm income, and nonfarm populations grow faster in counties with relatively high nonfarm income. However 3) there is no evidence of positive spillover income effects across the farm and nonfarm sectors: higher farm incomes lead to slower nonfarm population growth and vice versa. 4) Measured county government services financed by local taxes or debt have neutral or negative effects on population growth.
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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number
5061.
Length: Date of creation: 01 Mar 2002 Date of revision: Publication status: Published in American Journal of Agricultural Economics, August 2002, Vol. 84, pp. 615-627. Handle: RePEc:isu:genres:5061
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Find related papers by JEL classification: J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998.
"Job Creation and Destruction,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262540932, December.
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)