Education and Nonmetropolitan Income Growth in the South

This research evaluates the effects of higher stocks of human capital (measured by the share of adults with some college) on growth in county per capita income using a Mankiw, Romer, and Weil type model adjusted for spatial dependence and capital stocks. Regressions based on county data from the 1970-2000 censuses for the 15 southern states indicate that metro counties realized more of a growth premium from added human capital than nonmetro counties. With nonmetro counties, service-based counties generally fared best from enhanced human capital.