Abstract
This study examines the determinants of poverty in Pennsylvania counties. Economic and demographic characteristics are evaluated in their relation to the poverty rate, using panel data from 2000 to 2019 for the 67 Pennsylvania counties. Data was collected from the U.S. Census Bureau. In accordance with the Hausman (1978) specification test, a two-way fixed effects model is estimated to account for unobserved county-specific and time-specific heterogeneity. Wald (1939) tests are used to determine joint significance for both demographic and economic variable groups. Results indicate that employment in manufacturing and in construction are negatively related to the poverty rate. Employment in agriculture, the percentages of renter-occupied housing units, nonwhite residents, and female-headed households, and population density are positively related to the poverty rate. These findings suggest that, to alleviate poverty, it may be beneficial to boost employment in manufacturing and construction, address racial and gender-based prejudice in the labor market, and focus efforts on those individuals living in less densely populated counties.
Recommended Citation
Alcantara, Angelique
(2023)
"THE DETERMINANTS OF POVERTY IN PENNSYLVANIA COUNTIES,"
Pennsylvania Economic Review: Vol. 30:
No.
2, Article 4.
DOI: https://doi.org/10.65193/3067-8080.1032