Urban-rural wage gap is steady

| Print |  Email
Wednesday, October 01, 2008

Coins STATEWIDE The often-cited widening gap between urban and rural wages actually has remained unchanged over the past decade, while both urban and rural wages are slipping compared to their counterparts nationwide.

“This is not such good news for rural areas, and it’s not good news for urban areas,” says state employment economist Art Ayre, who did the analysis.

After adjusting for inflation, the urban-rural wage gap has been fairly stable since 1997, says Ayre. “In the unadjusted data, what you were seeing was increasing inflation more than a widening of the gap,” he says. In 1997, average annual earnings for a metro-county worker were $26,944, and for a rural county worker they were $22,051. In 2007, that was $37,236 for a metro worker and $30,191 for a rural worker. After adjustment to 2007 dollars, the wage difference was $7,046 in 1997 and $7,045 in 2007. Counties classified as metro are Benton, Clackamas, Columbia, Deschutes, Jackson, Lane, Marion, Multnomah, Polk, Washington and Yamhill. Rural counties are all other.

Additionally, for the first time in eight years, the average earnings of workers in rural Oregon have fallen below their counterparts nationwide. Until 2006, the latest year for available data, rural wages in the state were at 97% of U.S. rural wages. The wage gap for metro workers in Oregon vs. the nation is even bigger, with those wages at 86% of average U.S. metro wages.

“Oregon just does not have the really large metro areas that the U.S. on average has, and large population centers drive higher wages,” says Ayre.

Being close to a large population center also affects prosperity of rural communities. A recent report by Oregon State University economists says remoteness is the main cause of disparities between communities that flourish and those that do not. The greater the distance between a community and its closest urban neighbor the less likely it is to prosper. That holds true nationwide, the study says, where the communities with the lowest wages are those in the most remote areas.               

ROBIN DOUSSARD


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

Aim High

September 2015
Thursday, August 20, 2015
BY JOE CORTRIGHT

We get the education we deserve.


Read more...

Flattery with Numbers

July/August 2015
Friday, July 10, 2015
BY JOE CORTRIGHT

The false promise of economic impact statements.


Read more...

Back to School

September 2015
Wednesday, August 19, 2015
BY CHRIS NOBLE

Oregon is home to an abundance of gritty warehouses reborn as trendy office spaces, as well as crafty hipsters turned entrepreneurs. Does the combination yield an equally bounteous office products sector? Not so much. Occupying the limited desk jockey space are Field Notes, a spinoff of Portland’s Draplin Design Company, and Schuttenworks, known for whittling Apple device stands. For a full complement of keyboard trays, docking stations and mouse pads, check out the GroveMade line, guaranteed to boost the cachet of even the lowliest cubicle drone. 


Read more...

Downtime with Debra Ringold

July/August 2015
Monday, July 13, 2015
BY JACOB PALMER

Dean of the Atkinson Graduate School of Management, Willamette University


Read more...

Money Troubles

September 2015
Thursday, August 20, 2015
BY DAN COOK

The state’s angel investing fund gets hammered in Salem.


Read more...

Up on the Roof

September 2015
Wednesday, August 19, 2015
BY LINDA BAKER

In 2010 Vanessa Keitges and several investors purchased Portland-based Columbia Green Technologies, a green-roof company. The 13-person firm has a 200% annual growth rate, exports 30% of its product to Canada and received its first infusion of venture capital in 2014 from Yaletown Venture Partners. CEO Keitges, 40, a Southern Oregon native who serves on President Obama’s Export Council, talks about market innovation, scaling small business and why Oregon is falling behind in green-roof construction. 


Read more...

Business partnerships: taming the three-headed monster

Contributed Blogs
Monday, July 06, 2015
070615-businessmarriagefail-thumbBY KATHERINE HEEKIN | OB GUEST COLUMNIST

Picking a business partner is not much different than choosing a spouse or life partner, and the business break-up can be as heart-wrenching and costly as divorce.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS