The role of local school quality in rural employment and population growth

Abstract

This study investigates the influence of school quality (measured at the high school level) on 1980 to 1990 population and employment change for nonmetropolitabn fringe and hinterland census tracts in South Carolina. A Boarnet variation of the Carlino-Mills model is used to examine the interdependence of population and employment change. Local school quality is estimated by scores on standardized tests and students-to-teacher ratios. The model's equations also include variables for local area characteristics identified as determinants of population or employment growth in previous studies (eg, public service availability and costs, quality of life, labor force characteristics, and access to metro areas). Results of the 2SLS estimation indicate that fringe tracts' population growth was positively related to student test scores, and hinterland tracts population and employment growth were negatively related to student-teacher ratios. Empirical results suggest that local school quality provided a positive influence on rural growth, primarily in terms of residential growth. The role of school quality for employment growth was less clear.