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THE EFFECT OF YOUTH POVERTY RATES AND MIGRATION ON ADULT WAGES
Author(s) -
Knapp Thomas A.,
White Nancy E.
Publication year - 2016
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12241
Subject(s) - poverty , earnings , economics , national longitudinal surveys , wage , demographic economics , poverty rate , human capital , instrumental variable , labour economics , economic growth , econometrics , accounting
We created a migration and earnings history from the National Longitudinal Survey of Youth to analyze the effects of youth county poverty rates on the adult earnings of white male migrants. We estimate a log wage equation that includes human capital measures, migration types, county poverty rates, and a rural–poverty rate interaction variable. Growing up in a rural county has a negative impact on adult wages independent of youth county poverty rates, but the rural effect is significantly greater for those who grew up in high poverty counties. Youth county poverty rates indirectly affect wages through the returns to migration.