EMPLOYMENT, INCOME, AND MIGRATION IN APPALACHIA: A SPATIAL SIMULTANEOUS EQUATIONS APPROACH

Authors


  • We acknowledge helpful comments by Dale Colyer, the editor, and referees of this journal. Jacquelyn Strager produced Figure 1 for us. We are grateful to Anil Rupasingha, Stephan J. Goetz, and David Freshwater for permission to use their Social Capital Index for U.S. counties. The usual caveat applies. The West Virginia Agricultural and Forestry Experiment Station and the West Virginia University Regional Research Institute provided partial financial support for this project.

Abstract

ABSTRACT Appalachia remains a symbol of poverty in the midst of prosperity. During the 1990s it fell further behind the rest of the nation. Persistent poverty during a period of strong growth is a serious as well as an interesting subject to study. We examine determinants of growth in Appalachia between 1990 and 2000. We show that employment, migration, and median household income were jointly determined by regional covariates and that county economic conditions were conditional on the performance in neighboring counties. One conclusion is that regional cooperation and geographically focused programs may yield the greatest returns to policy investments.

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