Natural amenities and skill sorting in rural communities: a case study of land conservation policy

Yong Chen (), David Lewis and Bruce Weber ()
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Yong Chen: Oregon State University
Bruce Weber: Oregon State University

The Annals of Regional Science, 2021, vol. 67, issue 3, No 4, 649-669

Abstract: Abstract Recent research finds evidence that improvements in rural natural amenities can increase median household income in communities close to the amenities. In this paper, a simple theoretical model is sketched out as an explanation of a hypothesized underlying mechanism: improvement in natural amenities can induce skill sorting across rural communities. Using community-level data in the state of Oregon before and after a large federal land conservation program was implemented, we test this hypothesis along with several competing mechanisms. Our empirical results support the hypothesized mechanism of amenity-induced skill sorting. Other mechanisms like the out-migration of the low-income population and the in-migration of the elderly population are not supported. The findings are important for policy discussions about land conservation, development and their distributional impacts.

JEL-codes: Q24 R10 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s00168-021-01060-3

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