The Production of Economic Knowledge in Urban and Rural Areas: The Role of Student, Teacher, and School Characteristics

Abstract

Many states are adopting economic education standards for the K-12 curriculum, mandating economic education courses in rural and urban schools. We examine economic education outcomes for rural and urban students using test scores gathered during a national high school academic competition and by estimating a production function for economic education. We find only limited differences between the education production function in urban and rural settings and lower average scores for rural students. To close this gap, results suggest that rural schools should place economic content in the senior-year curriculum and provide teachers with increased postgraduate training in economics.