The rural penalty: the sources and magnitude of income differences between urban and rural older adults in the United States

Abstract

This study examined the impact of rural residence on the earned income of older adults and the relationship of rural residence to possible structural, individual, and life course determinants of income. Using a sample of full-time workers age 50 and older drawn from the 2009 Current Population Survey, explanations of income based upon theories of dual economy, labor market segmentation, occupational sex segregation, human capital, rational choice, and the life course perspective were explored for both the full sample and for rural and urban workers. The research results found clear differences in income between rural and urban older workers, and differences by location in the predictive power of the segments in the proposed model. Strong support was found for the hypothesis that rural older workers have lower wage and salary income than urban older workers. Overall, urban older workers earned more than rural older workers, and in every condition except one, urban workers outearned rural workers