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Abstract
It is no secret that much of rural America is struggling
economically. Despite similar employment
growth rates, nonmetropolitan areas tend to have relatively
higher unemployment and underemployment
rates and slower population growth rates than their
metropolitan counterparts.1 Additionally, over the
past 15 years, evidence from several states suggests
that nonmetropolitan job losses have been in relatively
high paying sectors, whereas growing sectors in the
rural economy tend to pay relatively low-wages
(Shields and Vivanco 2003).
One important consequence of this dynamic is an
increase in the disparity between metropolitan and
nonmetropolitan household incomes. For example,
Bureau of Economic Analysis data show that over the
period 1969-2002, the average state metropolitan
nominal per capita income increased by 97.5 percent
(to $31,264) whereas the average nonmetropolitan
state per capita income increased by only 91.5 percent
(to $24,635). The upshot? Many parts of rural America
have lower incomes and are falling further behind.