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The Returns to Education in Rural Areas

Author

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  • 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)

Abstract

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.

Suggested Citation

  • Goetz, Stephan J. & Rupasingha, Anil, 2004. "The Returns to Education in Rural Areas," The Review of Regional Studies, Southern Regional Science Association, vol. 34(3), pages 245-259.
  • Handle: RePEc:rre:publsh:v:34:y:2004:i:3:p:245-59
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    References listed on IDEAS

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    1. 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.
    2. 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.
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    4. McGranahan, David A., 1999. "Natural Amenities Drive Rural Population Change," Agricultural Economic Reports 33955, United States Department of Agriculture, Economic Research Service.
    5. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    6. Ngarambé, 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, Cambridge University Press, vol. 30(2), pages 325-337, December.
    7. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, June.
    8. Nelson, James R. & Wise-Julia, Roxana, 1999. "Higher Education And The Labor Market In The State Of Idaho," A.E. Research Series 305160, University of Idaho, Department of Agricultural Economics and Rural Sociology.
    9. 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.
    10. Barbara Sianesi, 2002. "The returns to education: a review of the empirical macro-economic literature," IFS Working Papers W02/05, Institute for Fiscal Studies.
    11. 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(3), pages 565-572, December.
    12. Goetz, Stephan J. & Debertin, David L. & Pagoulatos, Angelos, 1998. "Human Capital, Income, and Environmental Quality: A State-Level Analysis," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(2), pages 200-208, October.
    13. Stephan J. Goetz & Anil Rupasingha, 2003. "The Returns on Higher Education: Estimates for the 48 Contiguous States," Economic Development Quarterly, , vol. 17(4), pages 337-351, November.
    14. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    15. Goetz, Stephan J. & Hu, Dayuan, 1996. "Economic growth and human capital accumulation: Simultaneity and expanded convergence tests," Economics Letters, Elsevier, vol. 51(3), pages 355-362, June.
    16. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    Cited by:

    1. Maureen Kilkenny, 2010. "Urban/Regional Economics And Rural Development," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 449-470, February.
    2. M. Rose Olfert & Mark D. Partridge, 2010. "Best Practices in Twenty‐First‐Century Rural Development and Policy," Growth and Change, Wiley Blackwell, vol. 41(2), pages 147-164, June.
    3. Anu Tokila & Hannu Tervo, 2011. "Regional differences in returns to education for entrepreneurs versus wage earners," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(3), pages 689-710, December.
    4. Wallace, Michael T. & Jack, Claire G., 2011. "On‐Farm and Off‐Farm Returns to Education among Farm Operators in Northern Ireland," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108786, Agricultural Economics Society.

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    More about this item

    Keywords

    Education; Human Capital; Spatial;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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