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In today's global economy, U.S. businesses compete with businesses
from countries where wages and labor skill levels are relatively low.
To survive, U.S. businesses may reduce wages or use more labor-saving
technology to save on labor costs. Such efforts, however, may not be
sufficient to keep industry going in many places. Alternatively, businesses
may make adjustments in the products or services they sell to make better
use of a comparative advantage that benefits the U.S. economy—a
highly educated and high-skilled labor force.
Such adjustments have been easier for urban areas than for rural areas,
where the labor force is relatively less educated. This gap in skills
largely stems from migration of educated rural youth to urban areas where
the returns to education are higher. Historically, this movement has
not hurt rural areas because traditional rural jobs in agriculture, mining,
timber, and other such industries have not required much in the way of
education for their laborers. The same holds true for most other rural
jobs, including the manufacturing and service jobs that came to dominate
the rural economy in the 20th century. Technological change and globalization,
however, have ushered in an era in which employees are required to have
a higher level of skills and education.
While rural America has made improvements in educational attainment
in recent years, it still lags behind urban areas. This puts rural areas
at an economic disadvantage as workers' wages tend to be associated
with their education levels. In 2002, for example, average weekly earnings
of workers in rural (nonmetro) areas totaled $782 for college graduate,
$438 for those with a high school degree but not a college degree, and
$355 for those lacking a high school degree.
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In addition, employment growth in recent years has favored high-skill
over low-skill service jobs, and lower education levels have become
a disadvantage for rural manufacturing job growth, as most manufacturers
today are seeking to locate in places where the labor force is more
highly educated.
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Education's Contribution to Rural Economic Development
A 1997 ERS study found that higher education levels contributed positively
to the growth of total rural earnings (see What
Makes Rural Communities Grow?).
More recent research examining education's impact on various
measures of economic development also found several ways that education
had a positive effect on rural economic growth and well-being:
- A well-educated workforce facilitates the adoption of new ways
of producing goods or providing services among local businesses.
- Prospective
employers may view a well-educated local labor force as an
asset when choosing among alternative locations for new establishments.
- Highly skilled firm managers and workers
with school-age children prefer to live in places with good
school systems.
- Higher educational levels are almost always tied to geographic
clusters of certain key
industries, which in some cases have
generated major economic growth in rural areas.
Recognition of this link between education and economic development
has led to an increase in rural development strategies that focus on
educational improvement. Such approaches may be particularly beneficial
to rural areas that have most of the ingredients needed for development
in place, but find their potential limited by their populations' relatively
low education levels (see Education
as a Rural Development Strategy).
Strategies To Improve Rural School Performance
To adjust to these new economic realities, many rural communities are
making efforts to upgrade their schools. While some places endeavor
to attract better teachers, provide teachers with more training,
and build new and improved schools and facilities, such approaches can
be prohibitively expensive.
Rural communities are increasingly turning to alternative approaches
to improving school performance by embracing the capabilities of computers
and advanced telecommunications. For example, some rural schools are
enabling students to take advanced science classes through distance learning.
Such approaches may especially appeal to smaller schools and schools
with limited resources.
Some rural schools are encouraging more local residents to volunteer
as teaching assistants or tutors. The pool of volunteers may draw from
anyone in the community, including retirees, or members of local organizations,
such as faith-based institutions. Community involvement is critical in
attracting the individuals and organizations needed to perform these
roles.
Bridging the Gap Between Schools and Local Labor Requirements
Some rural schools have tried adopting curricula that encourage students
to identify more with the community's challenges, including programs
that help students create small businesses or participate in local
businesses and other institutions. These kinds of curricula have
multiple objectives, including (1) to help the student to acquire problem-solving
and entrepreneurial skills, (2) to assist local businesses and institutions,
and (3) to give students more reason to identify with the local community.
Strong identification with a community is particularly important
to areas with declining populations.
Other strategies linked to rural economic development make use of apprenticeships
and school-to-work programs. These initiatives engage area employers
to formally work with schools and training programs to streamline the
process by which youths acquire education and skills that can lead to
productive employment with local businesses (see The
Role of Education: Promoting the Economic & Social
Vitality of Rural America).
Community colleges and land grant universities can also play an important
role in rural economic development. In addition to providing basic
education and training, these institutions can help local firms or industries
directly
by developing new industrial products and processes, identifying new
markets, and providing specialized training for the workforce and for
community leaders (see Rural Community Colleges: Creating Educational
Hybrids for the New Economy). They can also help improve local
quality of life by providing a more intellectually stimulating environment
that can help to attract or retain creative employees and entrepreneurs
instrumental in driving economic development.
For more information on rural education and training, see the
Rural Labor and Education Briefing
Room. See also related
links and recommended
readings on topics covering education as a rural development strategy.
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