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Labor Market Incentives to Stay in School

Published online by Cambridge University Press:  28 April 2015

Judith I. Stallmann ,
Thomas G. Johnson ,
Ari Mwachofi  and
Jan L. Flora
Judith I. Stallmann
Affiliation:
Department of Agricultural and Applied Economics, Virginia Tech, Blacksburg, Virginia 24061-0401
Thomas G. Johnson
Affiliation:
Department of Agricultural and Applied Economics, Virginia Tech, Blacksburg, Virginia 24061-0401
Ari Mwachofi
Affiliation:
Department of Agricultural and Applied Economics, Virginia Tech, Blacksburg, Virginia 24061-0401
Jan L. Flora
Affiliation:
Department of Agricultural and Applied Economics, Virginia Tech, Blacksburg, Virginia 24061-0401
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Abstract

Human capital theory suggests that job opportunities will create incentives for human capital investment. If job information does not flow freely, or if they prefer not to move, students will make investment decisions based upon local job markets. Communities with a high percentage of low-skill jobs which do not reward high school and higher education do not create incentives for students to finish high school or continue beyond high school. Data from Virginia support this hypothesis. Targeted job creation, and improved labor market information may create incentives for increased human capital investment in many rural communities.

Keywords

dropoutseducationhuman capitaljob markets
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 25 , Issue 2 , December 1993 , pp. 82 - 94
Copyright
Copyright © Southern Agricultural Economics Association 1993

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