IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2023-05-1.html
   My bibliography  Save this article

Rural-Urban Differences in Poverty: An Analysis of Pennsylvania Counties

Author

Listed:
  • Angel Alcantara

    (Department of Finance and Economics, Indiana University of Pennsylvania, Indiana, Pennsylvania 15705,)

  • Stephanie M. Brewer

    (Department of Finance and Economics, Indiana University of Pennsylvania, Indiana, Pennsylvania 15705,)

  • James J. Jozefowicz

    (Department of Finance and Economics, Indiana University of Pennsylvania, Indiana, Pennsylvania 15705,)

Abstract

This study examines the determinants of poverty in rural and urban Pennsylvania counties. Economic and demographic characteristics are evaluated in their relation to the poverty rate using panel data from 2000 to 2019 for the 67 Pennsylvania counties. A two-way fixed effects model is estimated to account for unobserved county-specific and time-specific heterogeneity. The results indicate that there are rural-urban differences in the impacts of explanatory variables. In rural Pennsylvania counties, economic factors have significant effects on the poverty rate. The percentage of employment in manufacturing and construction are negatively related to the poverty rate, while the percentage of renters and employment in agriculture are positively related. In contrast, only the percentage of female-headed households has a positive, statistically significant impact in urban counties. Oaxaca (1973) decomposition indicates that structural characteristics in rural counties help mitigate their poverty rates. The results suggest that different policies must be implemented in urban and rural counties to alleviate poverty.

Suggested Citation

  • Angel Alcantara & Stephanie M. Brewer & James J. Jozefowicz, 2023. "Rural-Urban Differences in Poverty: An Analysis of Pennsylvania Counties," International Journal of Economics and Financial Issues, Econjournals, vol. 13(5), pages 1-9, September.
    • Handle: RePEc:eco:journ1:2023-05-1
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/14793/7438
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/14793
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. M. Ali Nasrun & Fariastuti & Sukma Indra, 2020. "The Role of Agricultural Sector in Explaining Poverty in Indonesia: A Study Case of West Kalimantan," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 297-303.
    2. Monica Fisher, 2007. "Why Is U.S. Poverty Higher in Nonmetropolitan than in Metropolitan Areas?," Growth and Change, Wiley Blackwell, vol. 38(1), pages 56-76, March.
    3. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    4. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    5. Rui Benfica & Heath Henderson, 2021. "The Effect of the Sectoral Composition of Economic Growth on Rural and Urban Poverty," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(1), pages 248-284, March.
    6. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
    7. Christopher S. Fowler & Rachel Garshick Kleit, 2014. "The Effects of Industrial Clusters on the Poverty Rate," Economic Geography, Taylor & Francis Journals, vol. 90(2), pages 129-154, April.
    8. Carlos Gayán‐Navarro & Marcos Sanso‐Navarro & Fernando Sanz‐Gracia, 2020. "An assessment of poverty determinants in U.S. census tracts, 1970–2010," Growth and Change, Wiley Blackwell, vol. 51(3), pages 977-999, September.
    9. Andresen, Martin A., 2013. "Unemployment, business cycles, crime, and the Canadian provinces," Journal of Criminal Justice, Elsevier, vol. 41(4), pages 220-227.
    10. Richard J. Cebula & Malissa L. Davis, 2022. "Determinants of poverty in the US state of Virginia: an examination of the impact of rent (the neglected variable)," Regional Studies, Regional Science, Taylor & Francis Journals, vol. 9(1), pages 818-830, December.
    11. Sau Kim Lum & Xuefeng Zhou, 2019. "Urban Housing Affordability: Assessing the Effectiveness of Policy Interventions in the Singapore Public Housing Sector," International Real Estate Review, Global Social Science Institute, vol. 22(4), pages 597-625.
    12. Peter N. Mba & Emmanuel O. Nwosu & Anthony Orji, 2018. "An Empirical Analysis of Vulnerability to Poverty in Nigeria: Do Household and Regional Characteristics Matter?," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 271-276.
    13. Gadom DJAL-GADOM & Armand MBOUTCHOUANG KOUNTCHOU, 2016. "Cross-County Poverty Comparisons In Chad: The Impact Of The Oil Revenues Redistribution Policy," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 44, pages 61-78.
    14. Breusch, T S & Pagan, A R, 1979. "A Simple Test for Heteroscedasticity and Random Coefficient Variation," Econometrica, Econometric Society, vol. 47(5), pages 1287-1294, September.
    15. Richard J. Cebula & Gigi M. Alexander, 2020. "Economic and Noneconomic Factors Influencing Geographic Differentials in Homelessness: An Exploratory State‐Level Analysis," American Journal of Economics and Sociology, Wiley Blackwell, vol. 79(2), pages 511-540, March.
    16. Martin Biewen & Stephen Jenkins, 2005. "A framework for the decomposition of poverty differences with an application to poverty differences between countries," Empirical Economics, Springer, vol. 30(2), pages 331-358, September.
    17. Suzanne Clain, 2008. "How Living Wage Legislation Affects U.S. Poverty Rates," Journal of Labor Research, Springer, vol. 29(3), pages 205-218, September.
    18. Christopher S. Fowler & Rachel Garshick Kleit, 2014. "The Effects of Industrial Clusters on the Poverty Rate," Economic Geography, Clark University, vol. 90(2), pages 129-154, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. George E. Halkos & Apostolos S. Tsirivis, 2023. "Electricity Prices in the European Union Region: The Role of Renewable Energy Sources, Key Economic Factors and Market Liberalization," Energies, MDPI, vol. 16(6), pages 1-20, March.
    2. George E. Halkos & Apostolos S. Tsirivis, 2023. "Electricity Production and Sustainable Development: The Role of Renewable Energy Sources and Specific Socioeconomic Factors," Energies, MDPI, vol. 16(2), pages 1-21, January.
    3. Mehzabin Tuli, Farzana & Mitra, Suman & Crews, Mariah B., 2021. "Factors influencing the usage of shared E-scooters in Chicago," Transportation Research Part A: Policy and Practice, Elsevier, vol. 154(C), pages 164-185.
    4. Peppel-Srebrny, Jemima, 2021. "Not all government budget deficits are created equal: Evidence from advanced economies' sovereign bond markets," Journal of International Money and Finance, Elsevier, vol. 118(C).
    5. Michele Fratianni & Francesco Marchionne, 2011. "The Limits to Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 9, Edward Elgar Publishing.
    6. Heather Antecol & Kelly Bedard, 2004. "The Racial Wage Gap: The Importance of Labor Force Attachment Differences across Black, Mexican, and White Men," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    7. Ayhan, Fatih & Elal, Onuray, 2023. "The IMPACTS of technological change on employment: Evidence from OECD countries with panel data analysis," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    8. Raffaella Santolini, 2017. "Electoral Rules And Public Spending Composition: The Case Of Italian Regions," Contemporary Economic Policy, Western Economic Association International, vol. 35(3), pages 551-577, July.
    9. Lisa Cook, 2014. "Violence and economic activity: evidence from African American patents, 1870–1940," Journal of Economic Growth, Springer, vol. 19(2), pages 221-257, June.
    10. Skare, Marinko & Gavurova, Beata & Sinkovic, Dean, 2023. "Regional aspects of financial development and renewable energy: A cross-sectional study in 214 countries," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1142-1157.
    11. Volonté, Christophe, 2015. "Boards: Independent and committed directors?," International Review of Law and Economics, Elsevier, vol. 41(C), pages 25-37.
    12. Michael O'Connor Keefe & David Gallagher, 2014. "Does the effect of revealed private information on initial public offering (IPO) first trading day return differ by IPO market heat?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 54(3), pages 921-964, September.
    13. Anastasia Petraki & Anna Zalewska, 2013. "With whom and in what is it better to save? Personal pensions in the UK," The Centre for Market and Public Organisation 13/304, The Centre for Market and Public Organisation, University of Bristol, UK.
    14. Guilhem Bascle, 2008. "Controlling for endogeneity with instrumental variables in strategic management research," Post-Print hal-00576795, HAL.
    15. Kleinow, Jacob & Moreira, Fernando, 2016. "Systemic risk among European banks: A copula approach," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 42(C), pages 27-42.
    16. Eduardo Correia & Rodrigo Calili & José Francisco Pessanha & Maria Fatima Almeida, 2023. "Definition of Regulatory Targets for Electricity Non-Technical Losses: Proposition of an Automatic Model-Selection Technique for Panel Data Regressions," Energies, MDPI, vol. 16(6), pages 1-22, March.
    17. Olivier Damette & Philippe Delacote, 2009. "The environmental resource curse hypothesis : the forest case [L'hypothèse de malédiction environnemental des ressources : le cas des forêts]," Working Papers hal-01189378, HAL.
    18. Paresh Kumar Narayan & Sagarika Mishra & Seema Narayan, 2015. "New empirical evidence on the bid-ask spread," Applied Economics, Taylor & Francis Journals, vol. 47(42), pages 4484-4500, September.
    19. Frondel, Manuel & Ritter, Nolan & Vance, Colin, 2012. "Heterogeneity in the rebound effect: Further evidence for Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 34(2), pages 461-467.
    20. Antecol, Heather & Bedard, Kelly, 2002. "The Racial Wage Gap: The Importance of Labor Force Attachment Differences," University of California at Santa Barbara, Economics Working Paper Series qt7cb6q4m9, Department of Economics, UC Santa Barbara.

    More about this item

    Keywords

    Poverty; Demographics; Pennsylvania; Oaxaca Decomposition;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2023-05-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.