High-Poverty Nonmetropolitan Counties in America: Can Economic Development Help?

Abstract

Despite significant poverty reductions in nonmetropolitan America during the 1990s, Census 2000 reports that hundreds of counties still possess high poverty rates. They have not only populations that are disproportionately minority, lack education, and live in single-parent households, but also weak job growth and low levels of labor force participation. To assess the potential antipoverty benefits of economic development in high-poverty counties, the authors compare their poverty-generating process with that of remaining nonmetropolitan counties. A primary finding is employment growth reduces poverty more in high-poverty counties. Likewise, completion of high school and obtaining an associate degree reduce poverty more in these counties. These patterns also hold for counties with persistently high poverty across decades. Thus, the authors are guardedly optimistic that high-poverty counties, even those where poverty has been persistent, will experience reduced poverty if economic development policies successfully stimulate job growth and increase human capital.