An Opportunity for Rural Redevelopment

In "Duck Dynasty vs Modern Family: 50 Maps of the US Cultural Divide," the New York Times repackages the way we visualize America's urban-rural divide. Such tribalism has dramatically manifested in recent years, but one way America can unify is to address urban-rural economic disparities. According to the Center for American Progress, "nonmetropolitan counties had yet to achieve pre-2008 levels of employment when the COVID-19 crisis hit." Furthermore, rural areas "lag the nation in population growth and productivity," and have especially low levels for upward mobility. One catalyst for closing this gap, surprisingly, may be the pandemic-driven rise of remote work. As people move from cities and spur "a boom for suburbs and rural areas," they bring with them wealth, skills, and attention; this in turn can improve rural infrastructure and job market access, helping boost the labor participation rate and productivity.

The neglect of rural America is exemplified by the scarcity of broadband internet access. An FCC report found that nearly 25% of rural Americans (14.5 million people) do not have access to basic connectivity. Because of the pandemic, however, people who can work remotely are moving to more rural locations to escape high cost of living and enjoy greater outdoors space. Data from moving companies like U-Haul and Atlas Van Lines indicate the top 5 destinations for relocation were Idaho, North Carolina, Maine, New Hampshire, and Alabama. Those who relocate are "mostly managers, professionals and financial workers" who typically earn higher incomes and have advanced degrees.  The scale of relocation is also grand; Pew Research Center reported that 22% of US adults moved or knew someone who moved due to the pandemic. 

As professionals move from cities into more rural areas, they create incentives for telecom companies and governments to invest in infrastructure like high-speed broadband internet. These newcomers have the wealth and expectations of urban necessities, so they will in a sense gentrify these long neglected regions. In Mississippi, for example, a $38 million grant was awarded to expand broadband internet and connect 37,000 homes and businesses. The benefits of these improvements to internet speed or healthcare will eventually spread, further increasing their attractiveness to moving adults. Labor participation rates in nonmetropolitan areas have fallen almost twice as much as urban areas. As wealthier city-dwellers move in, this infusion of cash may push wages up. Higher wages would then bring more people into the workforce with reservation wages satisfied. Rural Americans may also find increased job opportunities because they have greater access to remote work employment (better internet) or network with their professional neighbors. The pandemic's impetus for dramatic relocation could, therefore, jumpstart labor participation in rural America.

Another way this influx of newcomers can revitalize rural regions is boosting their productivity. Businesses who say before could only sell to the local town, can now sell online, increasing demand and by extension output capacity. People who can now telecommute will be more attractive to companies. Teachers who can now teach online can educate children more effectively. Creating a more skilled workforce increases productivity and attracts new business. Furthermore, increasing home and land values will also enrich current owners. The decentralization of work affords rural America with new opportunities, and these trends will likely stick. It is estimated by the Atlanta Federal Reserve and University of Chicago that days working from home will stay at roughly 20%. Blending the lines between urban and rural ensures that Americans across the board can have more equal opportunities to succeed.

Links to Sources:

• https://www.fcc.gov/reports-research/reports/broadband-progress-reports/eighth-broadband-progress-
  report#:~:text=Notwithstanding%20this%20progress%2C%20the%20Report,lack%20access%20to%20this%20service. 
• https://news.stanford.edu/2020/06/29/snapshot-new-working-home-economy/
• https://www.americanprogress.org/issues/economy/reports/2020/09/21/490411/path-rural-resilience-america/
• https://www.pewresearch.org/fact-tank/2020/07/06/about-a-fifth-of-u-s-adults-moved-due-to-covid-19-or-know-someone-who-did/
• https://www.wtok.com/2021/02/01/386-million-grant-awarded-to-help-emepas-broadband-expansion-project/
• https://www.ers.usda.gov/topics/rural-economy-population/employment-education/rural-employment-and-unemployment/#:~:text=Between%202008%20and%202017%2C%20the,percentage%20points%20in%20urban%20areas.&text=Rural%20areas%20have%20lower%20rates,because%20of%20their%20older%20populations.
• https://www.cnn.com/2021/02/01/success/new-york-california-exodus-2020-pandemic/index.html