Rural-Urban Differences in Poverty: An Analysis of Pennsylvania Counties

This study examines the determinants of poverty in rural and urban Pennsylvania counties. Economic and demographic characteristics are evaluated in their relation to the poverty rate using panel data from 2000 to 2019 for the 67 Pennsylvania counties. A two-way fixed effects model is estimated to a...

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Main Authors: Angel Alcantara, Stephanie M. Brewer, James J. Jozefowicz
Format: Article
Language:English
Published: EconJournals 2023-09-01
Series:International Journal of Economics and Financial Issues
Subjects:
Online Access:https://www.econjournals.com/index.php/ijefi/article/view/14793
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author Angel Alcantara
Stephanie M. Brewer
James J. Jozefowicz
author_facet Angel Alcantara
Stephanie M. Brewer
James J. Jozefowicz
author_sort Angel Alcantara
collection DOAJ
description This study examines the determinants of poverty in rural and urban Pennsylvania counties. Economic and demographic characteristics are evaluated in their relation to the poverty rate using panel data from 2000 to 2019 for the 67 Pennsylvania counties. A two-way fixed effects model is estimated to account for unobserved county-specific and time-specific heterogeneity. The results indicate that there are rural-urban differences in the impacts of explanatory variables. In rural Pennsylvania counties, economic factors have significant effects on the poverty rate. The percentage of employment in manufacturing and construction are negatively related to the poverty rate, while the percentage of renters and employment in agriculture are positively related. In contrast, only the percentage of female-headed households has a positive, statistically significant impact in urban counties. Oaxaca (1973) decomposition indicates that structural characteristics in rural counties help mitigate their poverty rates. The results suggest that different policies must be implemented in urban and rural counties to alleviate poverty.
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spelling doaj.art-3c5a5344c50b4fd18cbe32157515be952023-09-14T14:38:04ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382023-09-0113510.32479/ijefi.14793Rural-Urban Differences in Poverty: An Analysis of Pennsylvania CountiesAngel Alcantara0Stephanie M. Brewer1James J. Jozefowicz2Department of Finance and Economics, Indiana University of Pennsylvania, Indiana, Pennsylvania 15705,Department of Finance and Economics, Indiana University of Pennsylvania, Indiana, Pennsylvania 15705,Department of Finance and Economics, Indiana University of Pennsylvania, Indiana, Pennsylvania 15705, This study examines the determinants of poverty in rural and urban Pennsylvania counties. Economic and demographic characteristics are evaluated in their relation to the poverty rate using panel data from 2000 to 2019 for the 67 Pennsylvania counties. A two-way fixed effects model is estimated to account for unobserved county-specific and time-specific heterogeneity. The results indicate that there are rural-urban differences in the impacts of explanatory variables. In rural Pennsylvania counties, economic factors have significant effects on the poverty rate. The percentage of employment in manufacturing and construction are negatively related to the poverty rate, while the percentage of renters and employment in agriculture are positively related. In contrast, only the percentage of female-headed households has a positive, statistically significant impact in urban counties. Oaxaca (1973) decomposition indicates that structural characteristics in rural counties help mitigate their poverty rates. The results suggest that different policies must be implemented in urban and rural counties to alleviate poverty. https://www.econjournals.com/index.php/ijefi/article/view/14793Poverty, Demographics, Pennsylvania, Oaxaca Decomposition
spellingShingle Angel Alcantara
Stephanie M. Brewer
James J. Jozefowicz
Rural-Urban Differences in Poverty: An Analysis of Pennsylvania Counties
International Journal of Economics and Financial Issues
Poverty, Demographics, Pennsylvania, Oaxaca Decomposition
title Rural-Urban Differences in Poverty: An Analysis of Pennsylvania Counties
title_full Rural-Urban Differences in Poverty: An Analysis of Pennsylvania Counties
title_fullStr Rural-Urban Differences in Poverty: An Analysis of Pennsylvania Counties
title_full_unstemmed Rural-Urban Differences in Poverty: An Analysis of Pennsylvania Counties
title_short Rural-Urban Differences in Poverty: An Analysis of Pennsylvania Counties
title_sort rural urban differences in poverty an analysis of pennsylvania counties
topic Poverty, Demographics, Pennsylvania, Oaxaca Decomposition
url https://www.econjournals.com/index.php/ijefi/article/view/14793
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AT stephaniembrewer ruralurbandifferencesinpovertyananalysisofpennsylvaniacounties
AT jamesjjozefowicz ruralurbandifferencesinpovertyananalysisofpennsylvaniacounties