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Poverty in Michigan Small Communities

Author

Listed:
  • Denys Nizalov

    (Kyiv Economic Institute and Kyiv School of Economics, Kiev, Ukraine, nizalov@kse.org.ua)

  • A. Allan Schmid

    (Michigan State University, East Lansing, schmid@msu.edu)

Abstract

This article assesses the effect of labor demand and labor supply conditions on distribution of poverty across small communities in Michigan. The poverty model used for the analysis is based on the production behavior of the communities' residents, and is estimated using Census 2000 data. The difference in regional poverty rates is explained primarily by variation in the quality and quantity of communities' labor supply. Significant differences among rural, metropolitan, and metropolitan-adjacent communities are detected in determinants of poverty. In particular, a weak labor demand contributes to higher rates of rural poverty. Moreover, poverty rates are more persistent in rural areas and small towns. A higher average age of labor force is associated with a decrease in poverty rates. However, this effect becomes evident only after the ages of thirty-five to thirty-seven in rural areas, implying a slower accumulation of experience than in urban areas. Results imply that urban and rural poverty should be treated with area-specific policies that accommodate the difference in sources of poverty.

Suggested Citation

  • Denys Nizalov & A. Allan Schmid, 2008. "Poverty in Michigan Small Communities," International Regional Science Review, , vol. 31(3), pages 275-303, July.
    • Handle: RePEc:sae:inrsre:v:31:y:2008:i:3:p:275-303
    DOI: 10.1177/0160017608318955
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    References listed on IDEAS

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    Cited by:

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    3. Peters, David J., 2013. "Understanding the Poverty U-turn Across Geographic Scales in the American Midwest, 1980-2010," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 43(2).
    4. David J. Peters, 2011. "Place-Based Income Inequality Clusters in the Rural North Central Region, 1979–2009," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(2), pages 222-240.

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