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Labor Market Incentives To Stay In School


  • Stallmann, Judith I.
  • Johnson, Thomas G.
  • Mwachofi, Ari
  • Flora, Jan L.


Human capital theory suggests that job opportunities will create incentives for human capital investment. If job information does not flow freely, or if they prefer not to move, students will make investment decisions based upon local job markets. Communities with a high percentage of low-skill jobs which do not reward high school and higher education do not create incentives for students to finish high school or continue beyond high school. Data from Virginia support this hypothesis. Targeted job creation, and improved labor market information may create incentives for increased human capital investment in many rural communities.

Suggested Citation

  • Stallmann, Judith I. & Johnson, Thomas G. & Mwachofi, Ari & Flora, Jan L., 1993. "Labor Market Incentives To Stay In School," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(02), December.
  • Handle: RePEc:ags:joaaec:15034

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    References listed on IDEAS

    1. Kevin T. McNamara & Warren P. Kriesel, 1988. "Manufacturing Location: the Impact of Human Capital Stocks and Flows," The Review of Regional Studies, Southern Regional Science Association, vol. 18(1), pages 42-48, Winter.
    2. Smith, Eldon D. & Deaton, Brady J. & Kelch, David R., 1978. "Location Determinants of Manufacturing Industry in Rural Areas," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 10(01), pages 23-32, July.
    3. Brady J. Deaton & Larry C. Morgan & Kurt R. Anschel, 1982. "The Influence of Psychic Costs on Rural-Urban Migration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(2), pages 177-187.
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    Cited by:

    1. Danielle Christine Rhubart, 2017. "Identifying Associations Between State Medicaid Expansion Decisions and Spatial Disparities in County Insurance Rate Changes Under the Affordable Care Act," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 36(1), pages 109-135, February.
    2. Magali Jaoul-Grammare, 2007. "Stratégie des étudiants et choix d’orientation: Une analyse expérimentale de l’engorgement," Working Papers 07-06, Association Française de Cliométrie (AFC).
    3. Claude Diebolt & Magali Jaoul-Grammare, 2016. "Cliométrie de l’enseignement supérieur : une analyse expérimentale de la théorie de l’engorgement," Working Papers 02-16, Association Française de Cliométrie (AFC).


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