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Natural amenities and skill sorting in rural communities: a case study of land conservation policy

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Listed:
  • Yong Chen

    (Oregon State University)

  • David J. Lewis

    (Oregon State University)

  • Bruce Weber

    (Oregon State University)

Abstract

Recent research finds evidence that improvements in rural natural amenities can increase median household income in communities close to the amenities. In this paper, a simple theoretical model is sketched out as an explanation of a hypothesized underlying mechanism: improvement in natural amenities can induce skill sorting across rural communities. Using community-level data in the state of Oregon before and after a large federal land conservation program was implemented, we test this hypothesis along with several competing mechanisms. Our empirical results support the hypothesized mechanism of amenity-induced skill sorting. Other mechanisms like the out-migration of the low-income population and the in-migration of the elderly population are not supported. The findings are important for policy discussions about land conservation, development and their distributional impacts.

Suggested Citation

  • Yong Chen & David J. Lewis & Bruce Weber, 2021. "Natural amenities and skill sorting in rural communities: a case study of land conservation policy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(3), pages 649-669, December.
    • Handle: RePEc:spr:anresc:v:67:y:2021:i:3:d:10.1007_s00168-021-01060-3
    DOI: 10.1007/s00168-021-01060-3
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    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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