The rise of poverty in rural America
O.Hare, W.P.
Population Trends and Public Policy 15: 17
1988
ISSN/ISBN: 0736-7716 Document Number: 381884
The USA's rural population is experiencing growing levels of economic distress. By 1986, unemployment in rural areas was 26% higher than in urban areas. Outmigration has increased steadily since 1980, and between 1986 and 1987 almost a million more people moved out of rural areas than moved in. The poverty rate for the 54 million Americans who live in rural areas has climbed to 18% (50% higher than in urban areas). By 1986, 20% of young rural families was living below the poverty line. A large and growing number of young rural adults are poor despite the fact that they are in the work force. In 1986, 12% of young workers in rural areas were unable to earn enough to move above the poverty line. Over 25% of the working poor in rural America are employed in service industries which, ironically, have the best growth prospects. Along with a decline in the farm sector, many other rural-based industries have been adversely affected by national and global economic changes. This economic upheaval has resulted in a widening of the gap between rural and urban incomes during the 1980s, reversing a trend toward convergence during the 1970s. By 1986, the median income of rural families was 26% less than that of their urban counterparts. While the education level of young rural workers is lower than that of young urban workers it is not the major reason for higher poverty levels. Nor does it explain why poverty has been rapidly increasing in rural areas in the 1980s because educational attainment has also increased. Most of the rural poor do not receive cash assistance, do not live in public housing, do not receive food stamps, and are not covered by Medicaid. The School Lunch Programme is the only major welfare programme that reaches the majority of poor families with children. Concerted policy efforts are needed if the decline of rural areas of the USA is to be halted.