There has been a persistent gap in the poverty rate between urban and rural areas of the United States. Much of this gap has be attributed to industrial composition, however employment composition also likely plays a key role. Underemployment and labor force non-participation have been become significant issues in rural areas. This study uses data from the Current Population Survey for 1970 to 2018 to understand how poverty rates among 6 employment groups —(1) not in the labor force, (2) discouraged workers, (3) unemployed workers, (4) low hours workers, (5) low income workers, and (6) adequately employed workers— can explain the persistent gap in poverty between urban and rural areas. Demographic standardization and decomposition techniques reveal that majority of the poverty gap is explained by differences in poverty rates for the employment groups. Rural individuals in all employment group have higher poverty rates than urban individuals in the same group. Analysis also shows that if rural America had either the employment structure or the employment specific poverty rates of urban America than poverty rates would be much lower in rural areas.
Paid Parental Leave Laws in the United States: Does Short-Duration Leave Affect Women's Labor-Force Attachment?