Mason-Jenkins, Gayle

Pulver, Glen C.

English

Research Papers in Economics

HUMAN  RESOURCES/RURAL  POVERTY
Glen C. Pulver
University of Wisconsin-Madison
Gayle Mason-Jenkins
University of Maryland-Eastern  Shore
In the  lead  article  of the recent  Economic  Research  Service  pub-
lication Rural Economic Development in  the 1980s, David Brown and
Kenneth Deavers paint a very clear,  albeit  sad picture of poverty  in
rural America.
A disproportionate  share of the Nation's poor have resided  in
rural areas throughout  this century.  The latest data available
from the Census Bureau, the Current Population  Survey,  and
other  sources all  indicate that this situation persists  today.  In
1985,  the nonmetro  poverty  rate  was  18.3  percent  compared
with a 12.7 percent metro rate.  Even when in-kind transfers  are
included with other  income,  13.2 percent  of nonmetro  people
failed to have enough income  to meet minimal basic needs-the
official definition  of poverty.  In metro areas the comparable  fig-
ure was 9.3 percent  (1983 data).  While  poverty rates declined
during the mid-1970s,  both metro and nonmetro  rates have risen
since the  1979-82 recession and were substantially higher in 1985
than a decade before.
They  go on to point out a number  of differences between the  met-
ropolitan and nonmetropolitan  poor.
*  The nonmetro  poor are more  likely to be elderly,  white  and
live in the South.
*  More than two-thirds  of the nonmetro  poor families had at least
one worker.  Over  one-fourth  had at least two  workers.  In metro
counties only 58 percent had even one worker.
*  Since  1973  the poverty rate  among older persons  in nonmetro
areas  declined  from  23  to  18 percent.  The  rate for youths rose from
17 to  24 percent.  The  same relative  changes  occurred  in metro
areas. In 1973,  the poor were more  apt to be older people. Now they
are apt to be children.
43*  The oldest of the elderly (those 80  and over)  are disproportion-
ately located in nonmetro areas.
*  The nonmetro  elderly have only three-fourths  of the income  of
those in metro areas.
*  The poverty  rate  is  43  percent  for  female-maintained  families
compared  with  13 percent  for other  family  households.  The  child
poverty  rate  has increased  for all  residence  and  family types  since
1973.
*  Fifty percent  of the nonmetro  poor  live  in the South.  This is
down from 60 percent in 1973.
The reduction and ultimate  elimination of rural poverty represents
a formidable  challenge to any rural development  policy.
Peggy Ross and Stuart Rosenfeld,  writing in the same publication,
outline the importance of the quality  of human resources  to the kind
of economic  development  that  offers  hope  of alleviating  rural
poverty:
Assessing  the value  of the human resource base  requires infor-
mation about the existing inventory of skills, knowledge,  and be-
haviors,  the kinds  of skill,  knowledge,  and  behaviors  required
now  and in the future,  and the extent  to which  the  two  match.
Requirements  for human resources  are subject to more  dramat-
ic  change  than are  the capabilities  of the local  work  force.
Whereas  skills and  knowledge  are acquired  slowly  and require
sizeable  investments  of time  and  money,  needs  for different
kinds  of human resources  can arise  dramatically  and change
abruptly.  New technologies,  new  business openings or closings,
and business  expansions  may demand  radically  different  skills,
knowledge,  and behaviors in a relatively short period of time,
and the value  of a rural community's human resources  can drop
sharply if the work force is not adaptable to the changing needs.
Education
The existence  of a high-quality education is fundamental  to human
resource  development.  Ross  and  Rosenfeld  indicate  that  education
and training programs  can provide  not only  a mechanism  for build-
ing an adequate supply of skilled labor to meet current demands,
but also  the needed  flexibility  to be  responsive  to  rapid  changes  in
technology  and economic  climate.  By 1990 three out  of four jobs will
require  education  beyond  high  school.  Education  also  provides  for
the  development  of leadership,  business and innovative  skills need-
ed  by  entrepreneurs.  Quality  schools,  colleges  and  universities  can
also  contribute  positively  to  a  business  climate  that stimulates  eco-
nomic growth.
Once again rural areas are lagging urban areas in some factors.
44*  In  1980,  one in every five rural adults age  15  or older had com-
pleted  less that  eight years  of schooling.  The greatest  disparity be-
tween metro and nonmetro areas is in the South.
*  In 1982 high school seniors in rural communities (<10,000  in-
habitants)  scored lower in math achievement  scores than all other
schools except "high poverty central cities."
*  Teachers in rural schools have less experience.
*  Rural school  curricula are less varied.
In contrast,  however,  rural youths  are less apt to drop out  of
school-a 12.8 percent dropout rate compared to  18.9 percent for ur-
ban youth.  Rural youth participate  in more  school  activities  and are
more apt to be enrolled  in vocational agriculture  programs that rein-
force  science,  leadership  training,  business  skills and innovation.  It
is evident that larger schools are not the simple answer to the educa-
tional  gap.
Human Health
Human health  is another critical variable measuring the quality  of
human resources in rural America.  In general,  rural residents  suffer
the dual problems of poorer health and less professional health care.
Rural America is not the idyllic land of fresh air and long life.
Stephen Wright  and Dale Lick  identify  a few of the critical  differ-
ences between  metro and nonmetro  areas in their article on "Health
in Rural  America:  Problems  and  Recommendations"  found  in New
Dimensions in  Rural Policy: Building Upon Our Heritage published
by the Joint  Economic Committee  of Congress.
*  Rates of infant  and maternal  mortality are higher  in rural
areas.
*  The crude death rate in nonmetro America is  13 percent higher
in rural areas.
*  Stroke deaths are 31 percent higher in rural areas.
*  Arteriosclerosis deaths are 34 percent higher in rural areas.
*  More  than  50 percent of  new tuberculosis  cases  are in non-
metro areas.
*  Only homicide  is significantly higher in urban counties.
*  The 85-years-and-older  group has  a rural death rate 38 percent
higher than the urban rate.
*  The  median  age of metro  America was  30.5  years  versus  30.9
years for nonmetro  regions in 1982.
45*  The physicians-to-population  ratio in metro areas is more  than
double that of nonmetro  areas.
*  In metro areas there are more than five times the rate of hospi-
tal-based physicians.
In summary, nearly one  in five rural Americans is living in poverty
and  the income  gap between nonmetro  and metro  America  is wid-
ening.  The  quality of human resources,  in terms  of levels of educa-
tion and health,  is a critical determinant of the economic develop-
ment prospects  of rural America.  A well-educated  and  healthy
workforce  is necessary  to stimulate business attraction,  formation
and  expansion  in  high  technology,  manufacturing,  business  and
health services,  finance  and insurance,  the higher growth industries
of the  future.  If the levels of education and health of rural areas are
allowed  to continue  lagging those  of urban  areas, then economic
growth in rural America  is not likely to parallel that of urban Amer-
ica,  to say nothing  of closing the economic  gap.  Worse  yet,  those
rural residents  who attempt to flee the poverty of nonmetro areas
will be ill-prepared to compete for worthwhile employment in metro-
politan areas.
The fundamental  question  for policy educators  is how to help the
public identify  what can be done to resolve this dilemma.  Without at-
tention,  the problem will become more serious.  Those with a serious
interest  in the  human resource problems  of rural America may find
allies in impoverished  central cities.  The specifics  (problems, causes,
solutions) may be different but the need for attention the same. In
either case,  the challenge is tremendous.
Policy  Issues  and Options
While  a  number  of questions  relating to  human  resources  and
rural  policy  were raised  in the workshop,  the  discussion  focus  was
on education.  Issues related  to  education  include providing  ade-
quate funding for education  which may involve  conflicts between
local,  state  and federal  control.  Identifying  the training  and  educa-
tion needs  of the rural  population must be  a first step  in assuring
basic literacy  skills necessary  to enter  the work force.  Dealing with
displaced  workers due to industry restructuring  may present special
problems.
Options identified  for increasing educational competence  included
adopting minimum standards for education performance  and sub-
sidizing teachers  working in more remote  rural areas  in an attempt
to achieve certain  minimum standards.  Developing exchange  pro-
grams  between  schools  for  both students  and  teachers  was  sug-
gested as  an option  for increasing  educational  opportunity.  Another
option would involve providing incentives  for better performance,
both for students  and teachers.  The possibility of using a voucher
system to allow students to select schools  they want to attend was
46discussed,  but has  some  obvious  drawbacks  in  the more  remote
rural areas.  Replacing  administrators  in schools that do  not meet
minimum requirements  might be one option to be pursued.  Perhaps
federal support  will be needed for the most disadvantaged  rural re-
gions.  Finally,  the possibility  of using  new technologies  to deliver
quality education in rural schools was discussed.
Another discussion issue that surfaced  was whether there were
adequate  leadership development education  efforts in rural commu-
nities.  Land  grant university  extension  and experiment  station  per-
sonnel need  to be involved.  They can help identify the critical policy
questions related to the importance  of education to rural areas. They
can  also provide  some input on the cost of delivery of educational
programs to more rural areas through new technologies such as sat-
ellite delivery.
REFERENCES
Brown,  David L.,  and  Kenneth L. Deavers.  "Rural Change and the Rural Economic Policy Agenda for the 1980s."
Rural Economic Development in  the  1980s, Chapter  1. Washington  DC:  USDA  ERS Staff Report  AGES870724,
1987.
Ross,  Peggy J., and  Stuart A. Rosenfeld.  "Human Resource Policies  and Economic Development."  Rural Econom-
ic Development in the 1980s, Chapter  15. Washington  DC: USDA ERS Staff Report AGES870724,  1987.
Wright,  Stephen, and  Dale Lick.  "Health  in  Rural America:  Problems and Recommendations."  New  Dimensions
in  Rural  Policy: Building Upon Our Heritage. Washington  DC: Joint Economic Committee  of Congress,  1986.
47

Health in Rural America: Problems and Recommendations.&quot; New Dimensions in Rural Policy: Building Upon Our Heritage. Washington DC: Joint Economic Committee of Congress,

HUMAN RESOURCES/RURAL POVERTY

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