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The Returns to Education in Rural Areas

  • Goetz, Stephan J.

    (Northeast Regional Center for Rural Development, Agricultural and Regional Economics, PA State U and U CA, Berkeley)

  • Rupasingha, Anil

    (American U Sharjah)

We compare the returns to human capital in rural areas with those in urban areas, and across the different regions of the US. A key finding is that these returns are considerably lower in rural than in urban areas. Furthermore, failure to correct for spatial dependence bias produces an overestimate of the returns to education at the county-level. We also examine various interactions among the regressors to identify the reasons why the returns to education vary between rural and urban areas.

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Article provided by Southern Regional Science Association in its journal Review of Regional Studies.

Volume (Year): 34 (2004)
Issue (Month): 3 ()
Pages: 245-59

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Handle: RePEc:rre:publsh:v:34:y:2004:i:3:p:245-59
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  1. Goetz, Stephan J. & Debertin, David L. & Pagoulatos, Angelos, 1998. "Human Capital, Income, And Environmental Quality: A State-Level Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(2), October.
  2. Barbara Sianesi, 2002. "The returns to education: a review of the empirical macro-economic literature," IFS Working Papers W02/05, Institute for Fiscal Studies.
  3. Saurav Dev Bhatta & José Lobo, 2000. "Human capital and per capita product: A comparison of US states," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(4), pages 393-411.
  4. McGranahan, David A., 1999. "Natural Amenities Drive Rural Population Change," Agricultural Economics Reports 33955, United States Department of Agriculture, Economic Research Service.
  5. Robert J. Barro, 1989. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
  6. Rupasingha, Anil & Goetz, Stephan J. & Freshwater, David, 2000. "Social Capital And Economic Growth: A County-Level Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(03), December.
  7. Claudia Goldin & Lawrence F. Katz, 1999. "The Returns to Skill in the United States across the Twentieth Century," NBER Working Papers 7126, National Bureau of Economic Research, Inc.
  8. Stephan J. Goetz & Anil Rupasingha, 2003. "The Returns on Higher Education: Estimates for the 48 Contiguous States," Economic Development Quarterly, W.E. Upjohn Institute for Employment Research, vol. 17(4), pages 337-351, November.
  9. Ngarambe, Octavian & Goetz, Stephan J. & Debertin, David L., 1998. "Regional Economic Growth And Income Distribution: County-Level Evidence From The U.S. South," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(02), December.
  10. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  11. Mikael Lindahl & Alan B. Krueger, 2001. "Education for Growth: Why and for Whom?," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1101-1136, December.
  12. Nelson, James R. & Julia-Wise, Roxana, 1999. "Higher Education And The Labor Market In The State Of Idaho," A.E. Extension Series 18149, University of Idaho, Department of Agricultural Economics and Rural Sociology.
  13. Rupasingha, Anil & Goetz, Stephan J. & Freshwater, David, 2000. "Social Capital and Economic Growth: A County-Level Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 32(03), pages 565-572, December.
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