Brain Drain Lowers Returns to Rural Education
How the Returns to Education in Rural Areas Vary Across the Nation, a Penn State University study, finally measures how much this population shift harms rural areas (and benefits urban areas). It quantifies how little rural communities get in return for their contribution to the education of their children. Focusing on per capita income in rural and urban counties for those 25 and older with a high school diploma or a higher degree, the study finds that returns to education are over three times higher in urban areas than in rural areas.
In other words, increasing the number of people in a rural community with a high school diploma or higher brings about less than one-third the increase in income as does the same increase in educated people in an urban area. Returns to education were lowest in rural areas of the Midwest (and highest in rural areas of the West). This is particularly ironic since rural schools in the Midwest have among the highest performance measures of any schools in the nation.
These findings have significant consequences. If rural communities get less return for their school property taxes, there is potentially less support for public education as the tax burden is placed on fewer people. If returns to an individual’s educational investment are so much higher in urban areas, the pattern of educated young people leaving rural areas is sure to continue and accelerate.
Communities deprived of educated residents also face challenges in workforce attraction, retention, and economic development. The magnitude of the gap in returns to education shown by the report demonstrates the magnitude of the problem and challenges faced by rural communities. Public policy should place more emphasis on the need to develop rural economic opportunities, particularly those that pay enough to provide a return on the community and individual investment in education.
Contact: Jon Bailey, jonb@cfra.org or 402.687.2103 x 1013 for more information on the Center’s research and analysis program.
Brain Drain Lowers Returns to Rural Education
Intresting Subject-- article raising unique challenges. I plan to focus on rural Nebraska communities with a population of 1,000 or less. First, I will focus on existing business structure. Typically, surviving businesses offer groceries, aging population services (long term care, assisted living, etc.), gas station, lumber yard (possibly), bar(s), mechanic (limited knowledge/services the result of changing technology and/or expensive dignostic equipment), farm supplies, convenience store, and florist.
The above are basic, long standing businesses/services, some be subject to decreased demand as a result of declining need (i.e. aging population). People are forced to travel to larger metro areas (5,000-20,000 population) for diversified services, thus, taking local dollars and spending them in other economies. Another contributing factor is people working in metro area jobs, spending dollars earned in said area; bringing minimal dollars back to small rural commnity economies.
Your quote; "Communities deprived of educated residents also face challenges in workforce attraction, retention, and economic development." Intresting quote but a more challenging dilema. What creative initiatives, "out-side-the-box" ideas do small, rural communities develop and implement? I believe the key word is implement and implement successfully. It seems rural communites have development ideas, but fail on the implementation strategy. And, if strategic, lack a committed effort to implement.
"Public policy should place more emphasis on the need to develop economic opportunities..." Economic opportunities...what falls within this unique category? Challenges...residents are securing employment outside the community, dollars spent outside the community, and input not being offered from broadbase rural community residents (reside but fail to see impact or potential job opportunties).
What have sucessful small to medium sized rural communities been able to implement that resulted in DIVERSE business/industry opportunites and employment base? Residents seem to initially represent economic development interest but fail to act upon or take action.
Examples of successful startegies and results is welcome and appreciated. What public policy options would prove beneficial? I see/hear generalities but fail to recognize specific objectives..."develop rural economic opportunites"...what are these opportunties in the ever changing rural environment. Policy seems to be shifting power to the metro masses and leaving little options for the small, ever declining, rural communities. I have attend strategic planning meetings that result in rural, populace discouragement, and willingness to raise the white flag before accepting the challenge(s). Personally, accepting the challenge seems to be the easy step, implementation, and continuous efforts to make it happen are essential and significantly more difficult.
Your comments are greatly apprciated. I look forward to your comments and input.
Thanks,
Daniel Laska
Genoa, NE
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