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On the Empirical Finding of a Higher Risk of Poverty in Rural Areas: Is Rural Residence Endogenous to Poverty?

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  • Fisher, Monica G.

Abstract

This section includes: On the Empirical Finding of a Higher Risk of Poverty in Rural Areas: Is Rural Residence Endogenous to Poverty?:COMMENT, by Thomas A. Hirschl; On the Empirical Finding of a Higher Risk of Poverty in Rural Areas: Is Rural Residence Endogenous to Poverty?: REPLY, by Monica Fisher. Research shows people are more likely to be poor in rural versus urban America. Does this phenomenon partly reflect that people who choose rural residence have unmeasured attributes related to human impoverishment? To address this question, two models are estimated using Panel Study of Income Dynamics data. A single equation Probit model of individual poverty replicates the well-documented finding of higher poverty risk in rural places. However, an instrumental variables approach, accounting for correlation between rural residence and the poverty equation error term, finds no measured effect of rural location on poverty. Results suggest failure to correct for endogeneity or omitted variable bias may overestimate the "rural effect."

Suggested Citation

  • Fisher, Monica G., 2005. "On the Empirical Finding of a Higher Risk of Poverty in Rural Areas: Is Rural Residence Endogenous to Poverty?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(2), pages 1-20, August.
    • Handle: RePEc:ags:jlaare:31219
    DOI: 10.22004/ag.econ.31219
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    Cited by:

    1. 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.
    2. Gyawali, Buddhi Raj & Banerjee, Swagata (Ban) & Hill, Anquinette & Bukenya, James O., 2012. "Exploring Variations in Income Growth in Southeastern United States," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 120933, Southern Agricultural Economics Association.
    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. Simona Ballabio & Marianna Filandri & Lia Pacelli & Flavio Verrecchia, 2022. "Poverty of Young People: Context and Household Effects in North-Western Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(2), pages 819-842, June.
    5. Narayan Prasad Gautam & Nirmal Kumar Raut & Bir Bahadur Khanal Chhetri & Nirjala Raut & Muhammad Haroon U. Rashid & Xiangqing Ma & Pengfei Wu, 2021. "Determinants of Poverty, Self-Reported Shocks, and Coping Strategies: Evidence from Rural Nepal," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    6. Gearhart, Richard & Michieka, Nyakundi, 2019. "Natural resource abundance and healthcare efficiency in Appalachia: A robust conditional approach," Energy Policy, Elsevier, vol. 129(C), pages 985-996.
    7. Bruce Weber & Alexander Marre & Monica Fisher & Robert Gibbs & John Cromartie, 2007. "Education's Effect on Poverty: The Role of Migration," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(3), pages 437-445.
    8. Marre, Alexander W., 2009. "Rural Out-Migration, Income, and Poverty: Are Those Who Move Truly Better Off?," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49346, Agricultural and Applied Economics Association.
    9. 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.
    10. Bernard Josef, 2018. "Rural Quality of Life – Poverty, Satisfaction and Opportunity Deprivation in Different Types of Rural Territories," European Countryside, Sciendo, vol. 10(2), pages 191-209, June.
    11. Luo, Xiaoman, 2020. "How Does Parental Out-migration Affect Left-behind Children’s Schooling Outcomes? – Effect Sizes and Mechanisms," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304495, Agricultural and Applied Economics Association.

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    Keywords

    Food Security and Poverty;

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