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The Impact of Agriculture and Farm Produce Prices on Human Capital Formation: Education Decisions of Young Americans in Agricultural Areas Before and During the Food Crisis 2000-2010

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  • Thomson, Henry

Abstract

This study estimates the short-run effects of the structure of the local economy on high school dropout rates in agricultural areas in the United States from 2000 to 2010. Repeated cross-sections of census data are matched to state-level agricultural price indices and data on the regional composition of employment. Some authors theorise that human capital and land are substitutes, and increasing returns to land-intensive activities may lower human capital investments. I do not find empirical evidence of this in the rural United States. In fact, I find some evidence that as agriculture becomes more lucrative young people in areas with very high levels of agricultural employment become more likely to stay in school, not less, relative to those in areas with little or no agriculture within each state.

Suggested Citation

  • Thomson, Henry, 2013. "The Impact of Agriculture and Farm Produce Prices on Human Capital Formation: Education Decisions of Young Americans in Agricultural Areas Before and During the Food Crisis 2000-2010," Master's Theses 148745, University of Minnesota, Department of Applied Economics.
  • Handle: RePEc:ags:umapmt:148745
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    References listed on IDEAS

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    1. Nils-Petter Lagerlöf, 2006. "The Galor-Weil Model Revisited: A Quantitative Exercise," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 9(1), pages 116-142, January.
    2. Oded Galor & Omer Moav & Dietrich Vollrath, 2009. "Inequality in Landownership, the Emergence of Human-Capital Promoting Institutions, and the Great Divergence," Review of Economic Studies, Oxford University Press, vol. 76(1), pages 143-179.
    3. Jeffrey D. Sachs, 2003. "Institutions Don't Rule: Direct Effects of Geography on Per Capita Income," NBER Working Papers 9490, National Bureau of Economic Research, Inc.
    4. McGranahan, David A., 2004. "The Persistence of County High School Dropout Rates in the Rural South, 1970-2000," The Review of Regional Studies, Southern Regional Science Association, vol. 34(3), pages 288-302.
    5. David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September.
    6. Claude Montmarquette & Nathalie Viennot-Briot & Marcel Dagenais, 2007. "Dropout, School Performance, and Working while in School," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 752-760, November.
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    Keywords

    Labor and Human Capital;

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