1. Rural Pennsylvania in the New Economy: Identifying the Causes of Growth and Developing New Opportunities
- Author
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Center for Rural Pennsylvania, Harrisburg., Shields, Martin, and Vivanco, Carolina
- Abstract
Pennsylvania, like the United States, experienced a remarkable economic expansion through the late 1990s. The significant growth and change of this decade, however, did not equally touch all regions and all industries. Traditional sectors continued to decline, while growth in what has been dubbed the "new economy," considered to be the emerging service-and technology-based sectors, helped fuel the boom. Regional growth patterns also varied. The state's growth was centered in the southeast, while many northern tier and western counties grew slowly. These trends reflect an increased economic disparity between rural and urban Pennsylvania. Job creation has not remedied this disparity. Although annual employment growth rates since 1985 have been higher in rural counties than in urban ones, there is a growing gap between rural and urban per-worker earnings. The rural-urban wage gap, adjusted for inflation, grew from $4,400 per worker in 1979 to more than $9,450 per worker in 1999. Simply put, rural Pennsylvanians were faring worse in the new economy than they were 20 years earlier. If rural areas are adapting relatively slowly to the new economy, policymakers wanting to close the earnings gap need to understand rural growth trends, the causes of industry growth at the county level, and opportunities for growth in rural counties. This study investigates these issues by looking at the change in the number of jobs and business establishments and the average annual wages in rural and urban Pennsylvania, and in comparison states and their rural areas. Appended are: (1) Variables and their Data Sources; and (2) Predicted Industry Opportunities for Rural Pennsylvania Counties.
- Published
- 2004