Workforce Skills across the Urban-Rural Hierarchy

26 Pages Posted: 25 Feb 2012

See all articles by Jaison R. Abel

Jaison R. Abel

Federal Reserve Bank of New York

Todd M. Gabe

University of Maine - School of Economics

Kevin Stolarick

University of Toronto - Rotman School of Management

Date Written: February 1, 2012

Abstract

This paper examines differences in the skill content of work throughout the United States, ranging from densely populated city centers to isolated and sparsely populated rural areas. To do so, we classify detailed geographic areas into categories along the entire urban-rural hierarchy. An occupation-based cluster analysis is then used to measure the types of skills available in the regional workforce, which allows for a broader measure of human capital than is captured by conventional measures. We find that the occupation clusters most prevalent in urban areas — scientists, engineers, and executives — are characterized by high levels of social and resource-management skills, as well as the ability to generate ideas and solve complex problems. By contrast, the occupation clusters that are most prevalent in rural areas — machinists, makers, and laborers — are among the lowest in terms of required skills. These differences in the skill content of work shed light on the pattern of earnings observed across the urban-rural hierarchy.

Keywords: human capital, skills, occupations, urban-rural, earnings

JEL Classification: R11, R12, O18, J24

Suggested Citation

Abel, Jaison R. and Gabe, Todd M. and Stolarick, Kevin, Workforce Skills across the Urban-Rural Hierarchy (February 1, 2012). FRB of New York Staff Report No. 552, Available at SSRN: https://ssrn.com/abstract=2010646 or http://dx.doi.org/10.2139/ssrn.2010646

Jaison R. Abel (Contact Author)

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

Todd M. Gabe

University of Maine - School of Economics ( email )

Orono, ME 04469-5774
United States

Kevin Stolarick

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

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