Are Regional Earnings Differences Important?
The South historically has been the region with the lowest average earnings because of the concentration of low-skill, labor-intensive jobs in agriculture and routine manufacturing, and the relative lack of integration with the national economy. In today’s economy, however, nonmetro Southern earnings have risen relative to those in other regions and are similar to those in the Midwest. Lower educational attainment and a greater concentration of minorities in the South are largely offset by greater returns to higher education in the South and a greater concentration of voluntary part-time workers in the Midwest. While the data indicate that, on average, a worker with a low or moderate level of educational attainment and a given demographic profile will earn about the same in the South as in the Midwest, these regions are still at a disadvantage relative to the Northeast and West. However, there is a greater premium for college completion in the South, so workers with a college or advanc
