Jan L. Flora

Local Self-Development Strategies: National Survey Results.

This paper evaluates local self-development strategies among nonmetropolitan communities. It analyzes the characteristics of these projects, their benefits and costs, and the obstacles facing self-development communities. Based on a survey of more than one hundred communities, it was found that most self-development projects in the 1980s were initiated because of the depressed rural economy. Self-development efforts do not appear to replace traditional rural economic development activities; instead, they appear to complement them. Self-development activities produce a wide variety of jobs that are taken primarily by local residents. Informants reported that the cost and availability of credit are major obstacles for self-development projects. In terms of benefits, local business/industrial development projects tend to produce the most jobs and to produce them at the least cost.

LABOR MARKET INCENTIVES TO STAY IN SCHOOL

Human capital theory suggests that job opportunities will create incentives for human capital investment. If job information does not flow freely, or if they prefer not to move, students will make investment decisions based upon local job markets. Communities with a high percentage of low-skill jobs which do not reward high school and higher education do not create incentives for students to finish high school or continue beyond high school. Data from Virginia support this hypothesis. Targeted job creation, and improved labor market information may create incentives for increased human capital investment in many rural communities.