UNDEREMPLOYMENT IN APPALACHIA AND 

THE REST OF THE UNITED STATES, 1996-2004 

by 

Mark Price and Howard Wial 

Keystone Research Center, 2005 

Prepared for 

 the Appalachian Regional Commission 

Under Contract #CO-12884I-2003

412 N. Third Street * Harrisburg, PA 17101 

Phone: 717/255-7181 * Fax: 717/255-7193 * 

keystonerc@aol.com
UNDEREMPLOYMENT IN APPALACHIA AND 

THE REST OF THE UNITED STATES, 1996-2004 

Mark Price and Howard Wial 

Keystone Research Center, 2005 

Prepared for the Appalachian Regional Commission Under Contract

Conventional unemployment rates provide an incomplete measure of local labor market 

conditions, especially in poor rural regions. Unemployment, for example, does not 

include involuntary part-time workers; nor does it include discouraged workers who stop 

seeking work because they cannot find jobs. To get a more complete picture of labor 

markets in Appalachia, this data brief contains estimates of underemployment in 

Appalachia by state and by demographic group for each year from 1996 to 2004. These 

estimates are derived from the Current Population Survey. Although Appalachia per se is 

not identified in the CPS (and DWS), we construct a CPS sub-sample that approximates 

the Appalachian region of each state using the metropolitan geographic identifiers that 

are available.1

As defined here, the underemployed includes three other categories in addition to 

unemployed workers (unemployed workers are out of work and have looked for work in 

the last two weeks): 

• those working part-time but who want to work full time (“involuntary part-time 

workers”), 

• those who want to work but have been discouraged from searching by their lack 

of success (“discouraged workers”), and 

• others who are neither working nor seeking work at the moment but who indicate 

that they want and are available to work and have looked for a job in the last 12 

months.2

 

1

For more detail on the CPS sub-sample used here and how it was constructed, see Herzenberg, Price, and 

Wial 2005. The methodology used to estimate underemployment here is different than that used to 

estimate underemployment in each county of Appalachia from 1993 to 1998 (Bradley, Herzenberg, and 

Wial 2001). The earlier estimates relied on regressions of the relationship between underemployment and 

demographic, educational attainment, and industrial composition variables. These regressions were 

estimated using state-level cross-sectional data and then the regression coefficients were combined with 

county-level demographic, educational attainment, and industrial composition variables to produce 

underemployment estimates. In sum, in the earlier work we imputed underemployment for each county 

and then were able to aggregate counties into the Appalachian region of each state and the entire 

Appalachian region. In this work, we imputed the Appalachian region but then directly observed 

underemployment for this region. The earlier source remains the only one available with information on 

underemployment in individual Appalachian counties. The main difference between the two sources is that 

the earlier source finds that underemployment is still somewhat higher in Appalachia as a whole (e.g., 10 

percent in 1998 in Appalachia versus 8.6 percent in the United States as a whole) while the present source 

finds that underemployment has converged in the region and the rest of the nation. 

2

 Some other researchers add low-income workers into underemployment (see, for example, Jenson, 

Findeis, and Wang 1999). We do not. Underemployment here is the same as labor underutilization measure 

U-6 defined by the Bureau of Labor Statistics, which consists of “[t]otal unemployed, plus all marginally 

attached workers, plus total employed part time for economic reasons, as a percent of the civilian labor 

force plus all marginally attached workers.” (Marginally attached workers include discouraged workers 

and other marginally attached workers.) 
Tables 1 to 5 present annual data for 1996 through 2004 (each table except the last one 

contains two years). Tables 6 to 14 present annual data for 1996 through 2004 in 

metropolitan and rural areas. The main findings include the following. 

• In both Appalachia and the United States, underemployment is well above 

unemployment. In every year, underemployment in Appalachia and in the rest of 

the United States ranges between 7 and 10.2 percent, whereas U.S. 

unemployment in this period ranged from 4 to 6 percent. 

• In most years, the overall Appalachian underemployment rate is similar to the 

underemployment rate for the non-Appalachian United States. In 2004, for 

example, the Appalachian underemployment rate was 9.8 percent and the nonAppalachian underemployment rate was 9.5 percent. 

• As with unemployment, underemployment rates fell with the economic 

expansion of the second half of the 1990s to a low of 7.5 percent in Appalachia in 

2000 and 7 percent in the non-Appalachian United States. 

• In most years, underemployment in metropolitan Appalachia is somewhat below 

underemployment in metropolitan non-Appalachia.3

 Between 1996 and 2000 

underemployment in rural Appalachia was somewhat above underemployment in 

rural non-Appalachia.4 By 2004, underemployment rates in rural and 

metropolitan Appalachia and non-Appalachian had all converged (see Figure 1). 

• Comparing the Appalachian portions of each state, between 1996 and 2000 there 

were statistically significant declines in underemployment rates in nine states 

(see Figure 2).5 During this period the highest underemployment rates were in 

West Virginia with other central or northern states ordinarily second or third 

(e.g., New York, Pennsylvania, Kentucky, and Tennessee). 

• By 2002-04, underemployment rates were above the Appalachian average in 

West Virginia, Kentucky, South Carolina and North Carolina. 

• Between 1996 and 2004 there were statistically significant declines in 

underemployment rates in the Appalachian portions of Pennsylvania and West 

Virginia. Compared to 1996 underemployment rates were much higher in the 

Carolina’s (see Figure 3). Underemployment rates were below regional averages 

throughout the entire period in Virginia and Georgia. 

 

3

 The difference between underemployment rates in Metropolitan Appalachia and non-Appalachia is 

significant at a 90-percent confidence level in 1996-1998 and 2001-2003. 

4

 The difference between underemployment rates in Rural Appalachia and non-Appalachia is significant at 

a 90-percent confidence level in 1996-2000. 

5

 The difference between underemployment rates in 1996 and 2000 in New York, Pennsylvania, Virginia, 

West Virginia, North Carolina, South Carolina, Georgia, Kentucky and Tennessee is significant at a 90-

percent confidence level. 
Figure 1. Rural and Metropolitan Underemployment Rates in 

Appalachia and the non-Appalachian U.S.

6

8

10

12

1996 1997 1998 1999 2000 2001 2002 2003 2004

Underemployment Rates

Rural Appalachia

Rural non-Appalachia

Metropolitan Appalachia

Metropolitan non-Appalachia

Source: Source Tables 6 through 14.

 

Figure 2. Underemployment Rates in Appalachia by State

0

4

8

12

16

NY* PA* OH MD VA* WV* NC* SC* GA* KY* TN* AL MS

Underemployment 

Rates

1996 2000

Source: Tables 1 and 3.

Note: *The difference in the underemployment rate between 1996 and 2000 is significant at a 90-percent confidence level. 
Figure 3. Underemployment Rates in Appalachia by State

0

4

8

12

16

NY PA* OH MD VA WV* NC* SC* GA KY TN AL MS

Underemployment 

Rates

1996 2004

Source: Tables 1 and 5.

Note: *The difference in the underemployment rate between 1996 and 2004 is significant at a 90-percent confidence level. 
Table 1. Underemployment Rates in Appalachia, 1996-1997 

 1996 1997 

 United States United States 

 All All All All 

 Number Rate Number Rate Number Rate Number Rate 

Overall 13,138,544 9.7 12,290,159 8.9 

 

 Appalachia Non-Appalachia Appalachia Non-Appalachia 

Overall 1,088,167 9.7 12,050,377 9.7 1,012,114 8.9 11,278,045 8.9 

All Appalachian states 1,088,167 9.7 3,178,094 9.7 1,012,114 8.9 3,092,352 8.9 

NY 64,957 11.2 886,062 10.8 55,944 9.5 934,526 11.1 

PA 288,199 11.3 318,078 9.2 269,317 10.3 303,219 8.8 

OH 69,952 10.3 425,392 8.4 59,767 8.7 405,024 7.9 

MD 5,722 4.4 239,686 8.9 6,287 5.2 246,970 9.2 

VA 31,054 7.2 267,869 8.9 27,173 6.5 228,783 7.5 

WV 111,178 13.5 103,984 12.7 

NC 57,876 7.5 235,749 7.7 52,523 6.9 218,144 7.0 

SC 34,621 6.5 149,789 11.1 20,594 3.8 132,681 9.5 

GA 65,558 7.0 248,747 8.7 62,950 6.5 236,519 7.9 

KY 52,814 10.9 127,299 9.0 51,781 10.5 117,334 8.0 

TN 120,322 10.0 131,600 8.3 126,828 10.7 136,401 8.6 

AL 140,226 8.5 57,659 12.3 133,270 7.8 50,798 10.7 

MS 45,688 10.6 90,163 10.6 41,695 9.7 81,954 9.6 

 

White 885,198 8.9 8,941,500 8.6 830,142 8.2 8,230,002 7.8 

Non-white 202,968 16.9 3,108,877 15.4 181,971 15.3 3,048,043 14.6 

Male 550,463 9.1 6,178,961 9.2 514,985 8.4 5,744,771 8.5 

Female 537,704 10.4 5,871,416 10.2 497,128 9.5 5,533,274 9.4 

Less than high school 326,441 18.6 3,645,888 20.8 308,159 18.1 3,500,330 19.6 

High school diploma 467,652 10.5 4,180,066 10.6 421,837 9.4 3,939,212 9.7 

Some college 197,500 7.0 2,783,220 7.8 199,018 7.0 2,542,832 7.1 

College degree 71,318 4.8 1,057,384 4.9 60,023 3.9 932,067 4.2 

Postgraduate education 25,256 3.5 383,819 3.7 23,077 3.1 363,604 3.4 

 

Age 16-19 176,862 24.7 1,890,323 25.3 179,401 24.5 1,832,128 24.2 

Age 20-34 449,613 11.9 4,943,601 11.2 410,706 10.9 4,529,409 10.4 

Age 35-54 370,151 7.0 4,160,234 7.2 344,130 6.4 3,939,121 6.6 

Age 55+ 91,540 6.4 1,056,219 7.1 77,876 5.3 977,387 6.4 

Source: KRC analysis of CPS Basic Monthly Data. 
Table 2. Underemployment Rates in Appalachia, 1998 

 1998 1999 

 United States United States 

 All All All All 

 Number Rate Number Rate Number Rate Number Rate 

Overall 11,185,012 8.0 10,437,121 7.4 

 

 Appalachia Non-Appalachia Appalachia Non-Appalachia 

Overall 897,913 8.0 10,287,099 8.1 904,831 8.0 9,532,290 7.4 

All Appalachian states 897,913 8.0 2,714,947 8.1 904,831 8.0 2,543,159 7.4 

NY 56,592 9.6 807,781 9.7 59,489 9.7 738,399 8.8 

PA 215,180 8.4 278,229 8.1 223,800 8.8 256,643 7.4 

OH 54,755 8.6 359,563 7.0 52,893 8.3 352,544 6.9 

MD 5,893 5.7 205,877 7.7 5,067 4.2 183,001 6.8 

VA 20,752 5.1 177,577 5.7 17,055 4.4 165,322 5.2 

WV 91,704 11.3 101,931 12.2 

NC 48,495 6.3 192,458 6.3 40,865 5.2 184,275 5.9 

SC 19,610 3.7 116,394 8.1 20,039 4.0 118,984 8.1 

GA 63,566 6.3 224,323 7.4 59,190 5.9 219,363 7.0 

KY 52,327 10.9 113,982 7.7 45,673 9.7 116,094 7.7 

TN 103,828 8.5 109,652 7.0 104,634 8.1 93,085 6.0 

AL 122,943 7.3 47,321 9.6 137,288 8.2 38,802 8.1 

MS 42,267 9.9 81,791 9.5 36,907 8.6 76,646 8.9 

 

White 729,794 7.3 7,524,046 7.1 741,226 7.4 6,948,101 6.5 

Non-white 168,119 13.9 2,763,053 12.9 163,605 13.2 2,584,189 11.7 

Male 450,396 7.5 5,236,363 7.6 458,784 7.5 4,812,820 7.0 

Female 447,517 8.6 5,050,736 8.5 446,047 8.6 4,719,470 7.8 

Less than high school 261,210 16.0 3,163,312 17.6 265,568 16.7 2,873,844 16.4 

High school diploma 380,277 8.5 3,636,676 9.1 375,778 8.5 3,289,782 8.2 

Some college 189,414 6.5 2,287,961 6.4 184,532 6.2 2,166,748 5.9 

College degree 48,804 3.2 868,453 3.8 59,749 3.8 862,603 3.7 

Postgraduate education 18,208 2.5 330,696 3.0 19,204 2.5 339,313 3.0 

 

Age 16-19 144,468 20.9 1,707,897 21.7 160,367 22.9 1,623,939 20.5 

Age 20-34 365,061 10.0 4,089,673 9.5 354,404 9.6 3,710,599 8.7 

Age 35-54 313,472 5.8 3,574,756 5.9 313,724 5.8 3,292,352 5.3 

Age 55+ 74,913 5.1 914,773 5.8 76,335 5.1 905,400 5.5 

Source: KRC analysis of CPS Basic Monthly Data. 
Table 3. Underemployment Rates in Appalachia, 2000-2001 

 2000 2001 

 United States United States 

 All All All All 

 Number Rate Number Rate Number Rate Number Rate 

Overall 10,075,995 7.0 11,781,048 8.1 

 

 Appalachia Non-Appalachia Appalachia Non-Appalachia 

Overall 859,300 7.5 9,216,695 7.0 918,650 8.0 10,862,398 8.1 

All Appalachian states 859,300 7.5 2,411,479 7.0 918,650 8.0 2,791,430 8.1 

NY 55,027 8.8 674,192 7.8 46,820 7.6 723,897 8.4 

PA 202,122 7.8 243,316 6.9 233,550 8.7 273,255 7.6 

OH 57,775 8.9 338,106 6.5 49,109 7.5 393,536 7.4 

MD 3,521 2.9 156,081 5.8 10,075 7.3 185,744 6.9 

VA 17,328 4.2 134,471 4.2 23,832 6.0 186,115 5.7 

WV 83,031 10.2 75,152 9.1 

NC 51,337 6.1 206,750 6.2 73,872 8.7 306,488 9.2 

SC 26,391 4.9 106,112 7.4 33,377 6.2 118,193 8.4 

GA 55,365 5.2 202,950 6.3 58,077 5.4 205,170 6.5 

KY 38,582 7.9 99,199 6.6 46,504 9.6 112,081 7.6 

TN 94,541 7.7 119,112 7.3 94,865 7.9 149,094 9.0 

AL 134,178 8.1 42,875 8.8 133,466 8.2 52,068 10.6 

MS 40,102 8.9 88,315 9.9 39,950 8.9 85,789 10.0 

 

White 695,050 6.8 6,736,924 6.2 756,495 7.3 8,012,223 7.3 

Non-white 164,250 13.3 2,479,772 10.7 162,155 13.6 2,850,175 12.1 

Male 431,012 7.0 4,711,797 6.7 478,958 7.8 5,739,173 8.0 

Female 428,288 8.0 4,504,899 7.3 439,692 8.1 5,123,225 8.3 

Less than high school 255,283 15.6 2,832,464 15.7 250,450 16.0 3,167,168 17.5 

High school diploma 359,622 8.1 3,171,916 7.8 391,150 8.9 3,709,948 9.2 

Some college 168,986 5.6 2,077,374 5.5 197,692 6.3 2,492,009 6.6 

College degree 55,161 3.4 825,875 3.4 60,196 3.7 1,097,795 4.4 

Postgraduate education 20,248 2.5 309,066 2.6 19,163 2.3 395,478 3.3 

 

Age 16-19 143,982 19.9 1,525,210 19.5 138,395 21.2 1,662,015 22.1 

Age 20-34 328,036 9.0 3,568,702 8.2 334,825 9.4 4,301,640 9.8 

Age 35-54 308,562 5.5 3,225,969 5.1 351,422 6.2 3,851,669 6.0 

Age 55+ 78,721 5.0 896,814 5.2 94,008 5.7 1,047,073 5.8 

Source: KRC analysis of CPS Basic Monthly Data. 
Table 4. Underemployment Rates in Appalachia, 2002-2003 

 2002 2003 

 United States United States 

 All All All All 

 Number Rate Number Rate Number Rate Number Rate 

Overall 14,029,947 9.6 15,005,933 10.1 

 

 Appalachia Non-Appalachia Appalachia Non-Appalachia 

Overall 1,082,843 9.4 12,947,105 9.6 1,089,704 9.5 13,916,229 10.2 

All Appalachian states 1,082,843 9.4 3,338,853 9.6 1,089,704 9.5 3,535,254 10.2 

NY 59,438 9.5 861,967 9.8 58,763 9.5 922,202 10.3 

PA 263,683 9.9 334,797 9.0 243,788 9.4 332,402 9.1 

OH 59,650 9.0 505,208 9.4 71,416 10.7 553,180 10.4 

MD 14,061 8.5 194,761 7.2 11,388 8.2 211,066 7.6 

VA 25,600 6.6 234,916 7.1 24,523 6.3 232,298 6.8 

WV 80,647 10.0 84,666 10.7 

NC 89,375 11.0 386,579 11.6 84,935 10.5 389,369 11.3 

SC 51,337 9.9 130,018 9.1 55,792 10.2 170,124 11.4 

GA 75,920 7.1 276,207 8.6 83,708 7.8 264,449 7.9 

KY 48,270 10.5 126,695 8.6 55,923 11.6 147,786 9.7 

TN 106,287 8.6 150,183 8.8 109,555 9.1 168,546 9.8 

AL 159,915 9.7 39,362 9.0 156,571 9.0 43,536 9.8 

MS 48,659 10.8 98,161 11.6 48,676 10.8 100,296 11.3 

 

White 873,982 8.5 9,619,273 8.7 869,323 8.5 10,221,909 9.2 

Non-white 208,861 16.4 3,327,832 13.9 220,380 16.7 3,694,320 14.7 

Male 553,694 9.0 6,957,422 9.7 571,054 9.3 7,561,272 10.4 

Female 529,148 9.9 5,989,682 9.6 518,650 9.6 6,354,957 10.0 

Less than high school 286,020 18.8 3,461,096 19.4 276,540 18.4 3,596,481 20.3 

High school diploma 467,997 10.5 4,425,284 10.9 459,064 10.5 4,717,401 11.6 

Some college 234,474 7.7 3,168,248 8.3 244,769 8.0 3,479,387 9.0 

College degree 70,448 4.3 1,376,586 5.4 85,284 5.0 1,551,512 5.9 

Postgraduate education 23,904 2.8 515,891 4.1 24,047 2.8 571,448 4.4 

 

Age 16-19 141,681 23.7 1,798,037 24.6 140,531 23.2 1,788,434 26.0 

Age 20-34 427,599 12.2 5,075,369 11.5 445,284 12.2 5,451,249 12.3 

Age 35-54 397,529 7.1 4,744,219 7.4 383,414 7.0 5,126,001 7.9 

Age 55+ 116,033 6.5 1,329,480 6.9 120,474 6.8 1,550,545 7.5 

Source: KRC analysis of CPS Basic Monthly Data. 
Table 5. Underemployment Rates in Appalachia, 2004 

 United States 

 All All 

 Number Rate Number Rate 

Overall 14,289,753 9.6 

 

 Appalachia Non-Appalachia 

Overall 744,450 9.8 13,545,303 9.6 

 

All Appalachian states 744,450 9.8 3,749,079 9.6 

NY 47,772 9.9 877,755 9.7 

PA 143,413 9.5 432,393 9.0 

OH 58,175 10.7 573,846 10.6 

MD 3,777 9.3 204,283 7.1 

VA 20,844 6.7 243,517 7.0 

WV 75,656 9.4 

NC 54,658 10.2 366,637 9.8 

SC 47,997 11.9 196,933 11.6 

GA 41,231 8.2 315,359 8.0 

KY 43,760 9.8 133,907 8.7 

TN 77,769 10.5 189,767 8.7 

AL 85,762 9.6 113,998 8.8 

MS 43,636 10.4 100,683 10.9 

 

White 605,671 8.9 9,909,080 8.6 

Non-white 138,779 17.1 3,636,223 14.0 

 

Male 391,482 9.6 7,228,387 9.5 

Female 352,968 9.9 6,316,916 9.6 

 

Less than high school 205,393 18.8 3,531,327 19.8 

High school diploma 311,651 10.4 4,582,049 10.9 

Some college 161,213 8.1 3,383,536 8.4 

College degree 51,584 5.1 1,487,249 5.4 

Postgraduate 

education 14,610 2.9 561,141 4.1 

 

Age 16-19 103,272 24.5 1,761,751 25.2 

Age 20-34 297,081 12.5 5,324,924 11.7 

Age 35-54 259,804 7.2 4,899,948 7.3 

Age 55+ 84,293 6.9 1,558,680 7.1 

Source: KRC analysis of CPS Basic Monthly Data. 
Table 6. Underemployment Rates in Rural and Metropolitan Appalachia, 1996 

 United States 

 Metropolitan Rural Metropolitan Rural 

 Number Rate Number Rate Number Rate Number Rate 

Overall 10,523,054 9.6 2,615,490 10.3 

 

 Appalachia Non-Appalachia 

Overall 571,684 8.8 516,483 11.1 9,951,370 9.6 2,099,007 10.1 

All Appalachian states 571,684 8.8 516,483 11.1 2,617,808 9.6 560,285 11.1 

NY 27,418 11.1 37,539 11.4 826,081 10.8 59,980 11.9 

PA 199,907 10.9 88,292 12.2 304,853 9.1 13,225 11.9 

OH 22,566 8.9 47,386 11.2 369,918 8.2 55,475 10.2 

MD 5,722 4.4 239,686 8.9 

VA 2,720 4.1 28,334 7.8 223,794 8.9 44,075 8.8 

WV 48,528 10.8 62,650 16.9 

NC 27,883 7.0 29,992 8.1 164,094 7.0 71,656 10.0 

SC 34,621 6.5 72,054 8.2 77,735 16.5 

GA 40,189 5.8 25,369 10.4 162,795 7.9 85,952 11.0 

KY 1,887 5.7 50,927 11.3 70,798 8.3 56,502 10.0 

TN 67,231 9.4 53,091 10.8 101,604 7.8 29,996 10.6 

AL 93,011 7.9 47,215 10.1 40,735 12.9 16,924 11.0 

MS 45,688 10.6 41,398 9.0 48,765 12.5 

 

White 451,179 7.8 434,019 10.3 7,258,469 8.5 1,683,031 9.0 

Non-white 120,505 16.1 82,463 18.2 2,692,901 14.8 415,976 20.3 

Male 294,400 8.4 256,063 10.1 5,164,708 9.3 1,014,253 9.0 

Female 277,284 9.2 260,420 12.3 4,786,663 10.0 1,084,754 11.3 

Less than high school 149,428 18.0 177,012 19.2 2,983,543 21.2 662,345 18.9 

High school diploma 237,962 9.7 229,689 11.5 3,344,457 10.7 835,609 10.0 

Some college 120,504 6.8 76,996 7.3 2,331,586 7.8 451,634 7.9 

College degree 47,518 4.7 23,800 5.1 937,714 4.9 119,670 5.2 

Postgraduate education 16,271 3.4 8,985 3.8 354,070 3.8 29,749 3.1 

 

Age 16-19 96,089 24.0 80,773 25.6 1,528,446 25.7 361,877 23.9 

Age 20-34 238,731 10.8 210,882 13.5 4,092,301 11.0 851,300 12.6 

Age 35-54 192,427 6.2 177,724 8.2 3,456,411 7.1 703,824 7.3 

Age 55+ 44,437 5.6 47,103 7.6 874,212 7.3 182,007 6.3 

Source: KRC analysis of CPS Basic Monthly Data. 
Table 7. Underemployment Rates in Rural and Metropolitan Appalachia, 1997 

 United States 

 Metropolitan Rural Metropolitan Rural 

 Number Rate Number Rate Number Rate Number Rate 

Overall 9,857,428 8.8 2,432,730 9.5 

 

 Appalachia Non-Appalachia 

Overall 524,816 7.9 487,298 10.3 9,332,613 8.8 1,945,432 9.3 

All Appalachian states 524,816 7.9 487,298 10.3 2,581,309 8.8 511,043 9.9 

NY 26,763 9.9 29,181 9.1 889,641 11.3 44,886 9.2 

PA 186,570 10.0 82,747 11.1 290,892 8.7 12,327 10.8 

OH 17,484 6.8 42,283 9.7 356,105 7.8 48,919 8.9 

MD 6,287 5.2 246,970 9.2 

VA 1,886 2.8 25,287 7.2 190,539 7.5 38,244 8.0 

WV 43,537 9.9 60,447 15.9 

NC 25,707 6.6 26,816 7.2 154,010 6.5 64,134 8.4 

SC 20,594 3.8 66,155 7.8 66,526 12.3 

GA 39,338 5.5 23,611 9.1 153,557 7.2 82,962 9.7 

KY 1,436 4.3 50,345 11.0 60,715 6.8 56,618 10.0 

TN 69,557 9.8 57,272 12.2 102,373 7.8 34,028 12.6 

AL 85,656 7.1 47,614 9.5 34,368 11.0 16,430 10.0 

MS 41,695 9.7 35,985 7.8 45,969 11.7 

 

White 424,121 7.2 406,022 9.5 6,654,612 7.7 1,575,390 8.3 

Non-white 100,695 14.0 81,276 17.4 2,678,001 14.3 370,042 17.3 

Male 273,165 7.7 241,820 9.5 4,778,777 8.4 965,994 8.5 

Female 251,650 8.3 245,478 11.3 4,553,836 9.3 979,438 10.1 

Less than high school 144,655 17.2 163,503 18.9 2,873,397 20.1 626,933 17.8 

High school diploma 213,544 8.6 208,293 10.3 3,156,201 9.8 783,011 9.3 

Some college 114,529 6.6 84,489 7.6 2,143,542 7.2 399,290 6.9 

College degree 37,499 3.5 22,524 4.7 827,203 4.2 104,865 4.5 

Postgraduate education 14,589 3.0 8,488 3.5 332,271 3.5 31,333 3.1 

 

Age 16-19 90,837 22.5 88,564 27.1 1,492,502 24.5 339,626 23.1 

Age 20-34 213,666 9.8 197,039 12.4 3,797,809 10.3 731,600 10.9 

Age 35-54 178,496 5.6 165,635 7.5 3,248,941 6.5 690,179 7.0 

Age 55+ 41,816 5.0 36,060 5.9 793,361 6.4 184,027 6.2 

Source: KRC analysis of CPS Basic Monthly Data. 
Table 8. Underemployment Rates in Rural and Metropolitan Appalachia, 1998 

 United States 

 Metropolitan Rural Metropolitan Rural 

 Number Rate Number Rate Number Rate Number Rate 

Overall 8,940,933 7.9 2,244,078 8.8 

 

 Appalachia Non-Appalachia 

Overall 464,016 7.0 433,897 9.4 8,476,917 7.9 1,810,182 8.7 

All Appalachian states 464,016 7.0 433,897 9.4 2,227,822 7.9 487,125 9.4 

NY 21,792 8.2 34,800 10.7 753,194 9.6 54,587 10.9 

PA 151,720 8.5 63,460 8.4 268,640 8.1 9,589 8.3 

OH 17,842 7.6 36,913 9.2 315,525 6.9 44,037 8.6 

MD 5,893 5.7 205,877 7.7 

VA 5,218 6.3 15,534 4.8 155,261 5.8 22,316 5.1 

WV 37,802 8.7 53,902 14.3 

NC 27,194 6.4 21,301 6.2 134,748 5.8 57,710 8.0 

SC 19,610 3.7 52,667 6.3 63,727 10.7 

GA 38,751 5.2 24,816 9.4 132,878 6.2 91,445 10.2 

KY 1,293 3.5 51,034 11.5 56,242 6.0 57,739 10.4 

TN 62,576 8.4 41,252 8.8 85,825 6.6 23,828 8.8 

AL 74,326 6.2 48,617 9.7 29,953 9.1 17,368 10.7 

MS 42,267 9.9 37,012 7.9 44,779 11.4 

 

White 370,659 6.4 359,135 8.6 6,064,909 6.9 1,459,137 7.8 

Non-white 93,357 12.4 74,761 16.4 2,412,008 12.5 351,045 16.0 

Male 236,136 6.7 214,260 8.5 4,344,701 7.6 891,662 8.0 

Female 227,880 7.4 219,637 10.4 4,132,216 8.3 918,520 9.5 

Less than high school 118,955 15.0 142,255 17.0 2,604,424 17.9 558,888 16.2 

High school diploma 192,071 7.8 188,206 9.5 2,898,314 9.1 738,363 9.0 

Some college 113,037 6.3 76,378 7.0 1,909,103 6.4 378,857 6.6 

College degree 30,172 2.9 18,632 3.9 764,463 3.7 103,991 4.4 

Postgraduate education 9,782 2.0 8,426 3.6 300,614 3.0 30,083 3.0 

 

Age 16-19 75,358 19.7 69,110 22.3 1,407,315 21.9 300,583 20.8 

Age 20-34 181,608 8.4 183,453 12.3 3,387,589 9.2 702,084 10.9 

Age 35-54 164,004 5.2 149,468 6.7 2,934,195 5.8 640,561 6.5 

Age 55+ 43,047 5.0 31,865 5.2 747,819 5.9 166,954 5.6 

Source: KRC analysis of CPS Basic Monthly Data. 
Table 9. Underemployment Rates in Rural and Metropolitan Appalachia, 1999 

 United States 

 Metropolitan Rural Metropolitan Rural 

 Number Rate Number Rate Number Rate Number Rate 

Overall 8,343,569 7.2 2,093,552 8.2 

 

 Appalachia Non-Appalachia 

Overall 476,960 7.2 427,871 9.2 7,866,609 7.3 1,665,681 8.0 

All Appalachian states 476,960 7.2 427,871 9.2 2,085,410 7.3 457,748 8.9 

NY 26,053 9.5 33,436 9.9 684,504 8.7 53,895 10.4 

PA 147,915 8.4 75,885 9.7 245,192 7.3 11,452 9.5 

OH 15,334 6.4 37,559 9.4 308,189 6.7 44,355 8.7 

MD 5,067 4.2 183,001 6.8 

VA 4,948 6.0 12,107 4.0 145,591 5.3 19,731 4.8 

WV 49,937 10.8 51,994 14.1 

NC 22,904 5.1 17,961 5.4 134,820 5.6 49,455 7.0 

SC 20,039 4.0 56,573 6.3 62,411 10.8 

GA 36,732 4.9 22,459 8.7 138,345 6.1 81,017 9.4 

KY 1,141 3.4 44,532 10.2 64,478 6.8 51,616 9.3 

TN 59,634 8.0 45,000 8.4 66,180 5.3 26,905 8.7 

AL 87,255 7.2 50,033 10.7 20,456 6.4 18,346 11.9 

MS 36,907 8.6 38,081 8.1 38,565 9.9 

 

White 390,049 6.7 351,177 8.3 5,631,992 6.4 1,316,108 7.1 

Non-white 86,911 11.0 76,694 17.3 2,234,617 11.2 349,573 16.1 

Male 246,668 6.9 212,116 8.4 3,972,320 6.9 840,499 7.6 

Female 230,292 7.5 215,755 10.1 3,894,288 7.7 825,182 8.5 

Less than high school 125,783 15.9 139,786 17.5 2,381,312 16.6 492,532 15.5 

High school diploma 193,706 7.9 182,071 9.2 2,601,491 8.1 688,291 8.4 

Some college 104,619 5.7 79,913 7.1 1,801,566 5.9 365,182 6.1 

College degree 37,694 3.5 22,055 4.3 772,232 3.7 90,371 3.7 

Postgraduate education 15,157 2.9 4,047 1.7 310,008 3.0 29,305 2.8 

 

Age 16-19 82,584 21.2 77,783 25.1 1,329,680 20.6 294,260 20.3 

Age 20-34 186,872 8.5 167,532 11.4 3,094,797 8.5 615,802 9.9 

Age 35-54 166,442 5.2 147,282 6.5 2,710,839 5.2 581,513 5.8 

Age 55+ 41,062 4.7 35,274 5.7 731,294 5.5 174,106 5.7 

Source: KRC analysis of CPS Basic Monthly Data. 
Table 10. Underemployment Rates in Rural and Metropolitan Appalachia, 2000 

 United States 

 Metropolitan Rural Metropolitan Rural 

 Number Rate Number Rate Number Rate Number Rate 

Overall 8,015,286 6.8 2,060,709 8.0 

 

 Appalachia Non-Appalachia 

Overall 447,811 6.6 411,489 8.7 7,567,475 6.8 1,649,220 7.8 

All Appalachian states 447,811 6.6 411,489 8.7 1,955,646 6.8 455,833 8.8 

NY 24,215 8.5 30,812 9.0 624,113 7.7 50,079 9.5 

PA 137,330 7.7 64,792 8.1 233,568 6.8 9,748 7.9 

OH 16,526 6.7 41,249 10.2 288,900 6.2 49,206 9.6 

MD 3,521 2.9 156,081 5.8 

VA 3,272 3.1 14,056 4.6 113,164 4.0 21,306 5.2 

WV 41,495 8.8 41,536 12.0 

NC 24,909 5.4 26,428 6.9 138,387 5.5 68,363 8.5 

SC 26,391 4.9 52,423 5.8 53,689 10.0 

GA 34,856 4.3 20,509 8.2 130,520 5.5 72,430 8.8 

KY 1,513 4.9 37,069 8.1 55,312 6.0 43,887 7.5 

TN 47,234 6.9 47,306 8.7 91,281 6.9 27,831 9.0 

AL 86,549 7.2 47,628 10.5 25,851 7.7 17,025 11.2 

MS 40,102 8.9 46,046 9.5 42,269 10.4 

 

White 356,040 6.0 339,010 7.9 5,428,091 6.0 1,308,833 6.9 

Non-white 91,771 11.7 72,479 16.1 2,139,385 10.2 340,387 15.5 

Male 227,068 6.3 203,944 8.1 3,890,506 6.5 821,290 7.3 

Female 220,743 7.0 207,544 9.4 3,676,969 7.1 827,930 8.4 

Less than high school 117,360 14.4 137,923 16.8 2,327,079 15.8 505,385 15.6 

High school diploma 183,861 7.5 175,761 8.9 2,499,610 7.7 672,306 8.2 

Some college 96,688 5.2 72,297 6.2 1,726,474 5.5 350,900 5.9 

College degree 36,620 3.4 18,540 3.5 730,433 3.3 95,442 3.8 

Postgraduate education 13,281 2.5 6,967 2.6 283,879 2.6 25,187 2.3 

 

Age 16-19 69,883 17.0 74,099 23.6 1,258,351 19.7 266,859 18.7 

Age 20-34 173,196 7.9 154,840 10.9 2,955,374 7.9 613,329 9.9 

Age 35-54 163,415 5.0 145,147 6.2 2,645,621 5.0 580,348 5.7 

Age 55+ 41,318 4.6 37,403 5.5 708,129 5.1 188,685 5.7 

Source: KRC analysis of CPS Basic Monthly Data. 
Table 11. Underemployment Rates in Rural and Metropolitan Appalachia, 2001 

 United States 

 Metropolitan Rural Metropolitan Rural 

 Number Rate Number Rate Number Rate Number Rate 

Overall 9,573,077 8.0 2,207,971 8.6 

 

 Appalachia Non-Appalachia 

Overall 500,470 7.3 418,180 9.0 9,072,607 8.1 1,789,791 8.6 

All Appalachian states 500,470 7.3 418,180 9.0 2,303,234 8.1 488,197 9.7 

NY 16,864 6.0 29,957 8.8 675,710 8.4 48,187 9.2 

PA 165,743 8.8 67,807 8.5 262,968 7.6 10,287 8.4 

OH 17,958 7.2 31,151 7.7 356,376 7.4 37,160 7.2 

MD 10,075 7.3 185,744 6.9 

VA 5,068 5.6 18,765 6.0 152,399 5.4 33,716 7.9 

WV 41,248 8.8 33,904 9.6 

NC 38,143 8.4 35,730 8.9 210,417 8.4 96,071 11.5 

SC 33,377 6.2 58,759 6.3 59,434 12.6 

GA 38,332 4.6 19,745 8.4 137,751 5.8 67,419 8.9 

KY 2,285 7.6 44,219 9.7 63,170 7.0 48,911 8.4 

TN 46,840 6.4 48,025 10.2 121,740 8.7 27,355 10.2 

AL 84,538 7.2 48,927 10.9 34,463 10.1 17,604 11.8 

MS 39,950 8.9 43,736 9.6 42,053 10.4 

 

White 411,395 6.7 345,100 8.1 6,579,336 7.2 1,432,887 7.6 

Non-white 89,076 11.7 73,080 17.0 2,493,271 11.7 356,903 16.5 

Male 262,344 7.2 216,614 8.6 4,796,690 8.0 942,483 8.5 

Female 238,127 7.4 201,565 9.3 4,275,917 8.2 847,308 8.6 

Less than high school 120,920 15.2 129,530 16.8 2,631,333 17.6 535,835 17.2 

High school diploma 206,720 8.5 184,430 9.3 2,969,596 9.2 740,352 9.1 

Some college 118,118 6.0 79,574 6.9 2,097,768 6.6 394,240 6.5 

College degree 41,108 3.7 19,087 3.9 1,005,344 4.5 92,451 3.6 

Postgraduate education 13,604 2.4 5,558 2.0 368,566 3.3 26,912 2.4 

 

Age 16-19 71,538 19.3 66,857 23.6 1,377,025 22.2 284,989 21.4 

Age 20-34 179,505 8.3 155,320 11.1 3,623,319 9.6 678,322 11.0 

Age 35-54 196,119 5.8 155,303 6.7 3,215,027 5.9 636,642 6.3 

Age 55+ 53,308 5.5 40,700 5.9 857,236 5.9 189,837 5.7 

Source: KRC analysis of CPS Basic Monthly Data. 
Table 12. Underemployment Rates in Rural and Metropolitan Appalachia, 2002 

 

 Metropolitan Rural Metropolitan Rural 

 Number Rate Number Rate Number Rate Number Rate 

Overall 11,525,908 9.6 2,504,039 9.7 

 

 Appalachia Non-Appalachia 

Overall 615,601 9.0 467,242 10.0 10,910,307 9.6 2,036,797 9.7 

All Appalachian states 615,601 9.0 467,242 10.0 2,790,547 9.6 548,306 10.9 

NY 24,148 8.3 35,290 10.5 806,900 9.8 55,067 10.7 

PA 179,411 9.6 84,272 10.5 322,344 8.9 12,453 10.1 

OH 26,189 9.7 33,461 8.6 465,162 9.5 40,046 8.0 

MD 14,061 8.5 194,761 7.2 

VA 5,343 7.2 20,257 6.5 195,394 6.8 39,522 9.2 

WV 39,809 9.0 40,838 11.3 

NC 47,216 11.0 42,159 11.0 281,501 11.2 105,077 12.9 

SC 51,337 9.9 68,275 7.1 61,743 13.4 

GA 51,798 6.4 24,122 9.6 189,147 7.9 87,060 10.7 

KY 2,287 7.0 45,983 10.8 72,762 7.9 53,934 9.7 

TN 58,299 7.9 47,989 9.6 122,821 8.7 27,362 9.6 

AL 115,703 9.5 44,211 10.0 24,743 8.4 14,619 10.4 

MS 48,659 10.8 46,738 10.7 51,422 12.5 

 

White 481,376 8.0 392,606 9.3 7,976,128 8.7 1,643,145 8.7 

Non-white 134,225 15.8 74,636 17.8 2,934,179 13.6 393,652 17.5 

Male 307,756 8.4 245,938 9.8 5,848,673 9.6 1,108,749 9.8 

Female 307,844 9.6 221,304 10.3 5,061,634 9.6 928,048 9.5 

Less than high school 142,503 18.5 143,517 19.1 2,889,674 19.6 571,422 18.5 

High school diploma 255,870 10.5 212,127 10.5 3,562,664 11.0 862,620 10.4 

Some college 147,780 7.7 86,694 7.7 2,714,373 8.4 453,875 7.5 

College degree 52,659 4.5 17,789 3.7 1,264,952 5.5 111,634 4.3 

Postgraduate education 16,790 2.9 7,114 2.5 478,645 4.2 37,246 3.3 

 

Age 16-19 77,932 22.7 63,749 25.1 1,506,294 25.0 291,744 22.7 

Age 20-34 241,201 11.3 186,398 13.6 4,317,213 11.4 758,156 12.4 

Age 35-54 228,754 6.9 168,775 7.4 3,983,070 7.4 761,149 7.4 

Age 55+ 67,714 6.5 48,319 6.6 1,103,730 7.0 225,749 6.5 

Source: KRC analysis of CPS Basic Monthly Data. 
Table 13. Underemployment Rates in Rural and Metropolitan Appalachia, 2003 

 United States 

 Metropolitan Rural Metropolitan Rural 

 Number Rate Number Rate Number Rate Number Rate 

Overall 12,324,184 10.1 2,681,749 10.4 

 

 Appalachia Non-Appalachia 

Overall 612,415 8.9 477,289 10.3 11,711,770 10.2 2,204,460 10.4 

All Appalachian states 612,415 8.9 477,289 10.3 2,944,541 10.2 590,714 11.6 

NY 22,569 7.7 36,194 11.2 865,717 10.2 56,485 11.3 

PA 166,413 9.2 77,376 9.8 320,778 9.1 11,624 9.6 

OH 28,420 9.9 42,996 11.2 501,650 10.4 51,530 10.5 

MD 11,388 8.2 211,066 7.6 

VA 4,499 6.6 20,023 6.2 192,781 6.5 39,517 9.2 

WV 40,940 9.4 43,726 12.3 

NC 43,436 9.8 41,499 11.5 286,553 10.6 102,816 13.7 

SC 55,792 10.2 88,896 9.3 81,229 15.2 

GA 57,438 7.1 26,270 9.7 173,037 7.0 91,412 10.5 

KY 2,365 7.0 53,559 12.0 83,388 8.8 64,398 11.1 

TN 67,583 9.7 41,972 8.3 144,332 10.1 24,214 8.3 

AL 111,573 8.6 44,998 10.3 27,668 9.2 15,868 11.1 

MS 48,676 10.8 48,675 10.1 51,622 12.7 

 

White 480,154 8.0 389,169 9.2 8,474,126 9.2 1,747,783 9.3 

Non-white 132,261 14.9 88,120 20.4 3,237,643 14.2 456,677 19.0 

Male 318,763 8.8 252,291 10.0 6,351,854 10.3 1,209,418 10.6 

Female 293,652 9.0 224,998 10.6 5,359,915 10.0 995,042 10.1 

Less than high school 138,547 18.1 137,993 18.7 3,004,404 20.5 592,077 19.1 

High school diploma 252,715 10.5 206,349 10.4 3,780,180 11.6 937,221 11.6 

Some college 141,899 7.6 102,871 8.7 2,966,044 9.1 513,343 8.2 

College degree 63,517 5.2 21,767 4.4 1,425,969 6.0 125,542 4.8 

Postgraduate education 15,737 2.6 8,310 3.1 535,172 4.5 36,276 3.2 

 

Age 16-19 73,859 20.7 66,672 26.6 1,494,253 26.4 294,181 24.3 

Age 20-34 264,120 11.6 181,164 13.1 4,610,279 12.1 840,970 13.6 

Age 35-54 210,034 6.5 173,380 7.7 4,316,230 7.9 809,771 7.9 

Age 55+ 64,401 6.4 56,073 7.4 1,291,008 7.6 259,538 7.1 

Source: KRC analysis of CPS Basic Monthly Data. 
Table 14. Underemployment Rates in Rural and Metropolitan Appalachia, 2004 

 United States 

 Metropolitan Rural Metropolitan Rural 

 Number Rate Number Rate Number Rate Number Rate 

Overall 11,788,770 9.6 2,500,983 9.9 

 

 Appalachia Non-Appalachia 

Overall 278,034 9.7 466,416 9.8 11,510,736 9.5 2,034,567 9.9 

All Appalachian states 278,034 9.7 466,416 9.8 3,175,180 9.5 573,899 11.1 

NY 14,282 9.5 33,489 10.2 825,035 9.6 52,720 10.4 

PA 64,431 10.2 78,982 9.1 420,563 9.0 11,830 8.9 

OH 9,223 10.6 48,952 10.7 515,072 10.7 58,774 10.1 

MD 3,777 9.3 202,738 7.1 1,545 4.4 

VA 2,258 11.3 18,586 6.4 212,894 6.9 30,623 7.8 

WV 42,671 9.5 32,985 9.4 

NC 14,850 10.2 39,808 10.3 263,839 9.0 102,797 12.7 

SC 47,997 11.9 106,576 9.5 90,357 15.6 

GA 18,343 6.8 22,889 9.9 237,810 7.4 77,549 10.5 

KY 1,641 13.3 42,118 9.7 81,402 8.3 52,504 9.4 

TN 20,719 8.9 57,050 11.2 156,835 8.3 32,932 11.3 

AL 37,842 8.9 47,921 10.2 96,583 8.5 17,415 11.1 

MS 43,636 10.4 55,832 10.4 44,851 11.7 

 

White 224,164 8.9 381,507 8.9 8,280,522 8.5 1,628,559 8.9 

Non-white 53,870 15.1 84,909 18.6 3,230,214 13.6 406,009 17.6 

Male 141,719 9.4 249,763 9.8 6,142,671 9.5 1,085,716 9.9 

Female 136,315 10.1 216,653 9.8 5,368,065 9.6 948,851 9.9 

Less than high school 64,397 19.6 140,996 18.4 2,960,937 19.8 570,390 19.9 

High school diploma 114,404 11.5 197,247 9.9 3,757,255 11.0 824,794 10.5 

Some college 63,418 8.0 97,795 8.1 2,898,341 8.5 485,195 7.9 

College degree 27,660 5.5 23,924 4.6 1,372,548 5.5 114,701 4.4 

Postgraduate education 8,155 3.3 6,454 2.5 521,655 4.1 39,486 3.5 

 

Age 16-19 33,158 20.9 70,115 26.7 1,495,152 25.5 266,599 23.6 

Age 20-34 113,715 12.4 183,366 12.6 4,548,931 11.5 775,993 13.0 

Age 35-54 99,335 7.3 160,469 7.2 4,154,395 7.3 745,553 7.7 

Age 55+ 31,825 7.4 52,467 6.6 1,312,258 7.2 246,422 6.6 

Source: KRC analysis of CPS Basic Monthly Data. 
TECHNICAL APPENDIX

The major challenge in using the Current Population Survey (CPS) is to identify 

observations from Appalachia. The CPS contains information about each respondent’s 

state of residence and whether the respondent lives in a metropolitan or rural (i.e., 

nonmetropolitan) area. A limited number of metropolitan areas and metropolitan 

counties are also identified. The CPS includes state and metropolitan area geographic 

identifiers that make it possible to identify regions that account for about half the labor 

force of Appalachia. 

To analyze displacement in the rest of Appalachia it is necessary to consider CPS 

observations that cannot with certainty be included in or excluded from Appalachia. 

There are two types of such observations: those from metropolitan areas that are partly in 

and partly outside Appalachia and those from non-metropolitan portions of Appalachian 

states other than West Virginia. 

The 2000 Census 5 Percent Public Use Microdata Sample (IPUMS) was used to assign a 

rural or unidentified metropolitan observation in an Appalachian state a probability of 

being in the Appalachian region. 

The IPUMS data were used to estimate a logit equation of the form 

ln [P/(1-P)] = Xb + e 

where P is a variable that indicates whether or not a person lives in a 2000 Census public 

use microdata area (PUMA) that is entirely or partly in Appalachia, X is a vector of 

socioeconomic characteristics that are common to the Census and CPS (age, race, sex 

interacted with marital status, and educational attainment), b is a vector of coefficients, 

and e is an error term. Such a model was estimated separately for each PUMA or 

combination of PUMAs that covers either (a) a metropolitan area that includes both 

Appalachian and non-Appalachian counties or (b) the rural portion of each Appalachian 

state. The estimated coefficients were then applied to the estimated coefficients to the 

CPS data to produce a predicted Appalachian probability for each CPS observation 

(whether displaced worker or not) for which Appalachian residence is uncertain based on 

the CPS alone. 

Using this method two observations were then created from each CPS observation in a 

rural or unidentified metropolitan area of an Appalachian state. One, coded as an 

Appalachian observation, has a weight equal to WP and one, coded as a non-Appalachian 

observation, has a weight equal to W(1-P), where W is the appropriate CPS sample 

weight for the observation and P is the observation’s predicted probability of being in 

Appalachia. The Appalachian observations were used to estimate displacement statistics 

for Appalachia, its demographic groups, and its geographic areas as outlined above. 

In determining whether differences – between regions or within a region over time -- 
were statistically significant this study followed procedures recommended by the Bureau 

of Labor Statistics for determining statistically significant differences between national 

estimates (e.g, national estimates of a variable for two demographic groups at one point 

in time or for a variable at two points in time for one group). 
References 

Bradley, David H.; Stephen A. Herzenberg; and Howard Wial, 2001. An Assessment of Labor Force 

Participation Rates and Underemployment in Appalachia (Harrisburg: Keystone Research Center), 

prepared for the Appalachian Regional Commission under Contract #CO-12884I-1999, online at 

www.arc.gov. 

Herzenberg, Stephen; Mark Price; and Howard Wial, 2005. Displacement in Appalachia and the United 

States, 1993-2003: Findings Based on Five Displaced Worker Surveys (Harrisburg: Keystone Research 

Center), prepared for the Appalachian Regional Commission Under ARC Contract #CO-12884T-03, online 

at www.arc.gov. 

Jensen, Leif; Jill L. Findeis; and Qiuyan Wang. 1999. “Labor Supply and Underemployment in the 

Southern United States,” Paper for Southern Regional Science Association, April 16, Richmond, VA. 

Mishel, Lawrence; Jared Bernstein; and John Schmitt. 1999. The State of Working America 1998-99. 

Ithaca, NY: Cornell University Press. 

TECHNICAL APPENDIX

The major challenge in using the Current Population Survey (CPS) is to identify 

observations from Appalachia. The CPS contains information about each respondent’s 

state of residence and whether the respondent lives in a metropolitan or rural (i.e., 

nonmetropolitan) area. A limited number of metropolitan areas and metropolitan 

counties are also identified. The CPS includes state and metropolitan area geographic 

identifiers that make it possible to identify regions that account for about half the labor 

force of Appalachia. 

To analyze displacement in the rest of Appalachia it is necessary to consider CPS 

observations that cannot with certainty be included in or excluded from Appalachia. 

There are two types of such observations: those from metropolitan areas that are partly in 

and partly outside Appalachia and those from non-metropolitan portions of Appalachian 

states other than West Virginia. 

The 2000 Census 5 Percent Public Use Microdata Sample (IPUMS) was used to assign a 

rural or unidentified metropolitan observation in an Appalachian state a probability of 

being in the Appalachian region. 

The IPUMS data were used to estimate a logit equation of the form 

ln [P/(1-P)] = Xb + e 
where P is a variable that indicates whether or not a person lives in a 2000 Census public 

use microdata area (PUMA) that is entirely or partly in Appalachia, X is a vector of 

socioeconomic characteristics that are common to the Census and CPS (age, race, sex 

interacted with marital status, and educational attainment), b is a vector of coefficients, 

and e is an error term. Such a model was estimated separately for each PUMA or 

combination of PUMAs that covers either (a) a metropolitan area that includes both 

Appalachian and non-Appalachian counties or (b) the rural portion of each Appalachian 

state. The estimated coefficients were then applied to the estimated coefficients to the 

CPS data to produce a predicted Appalachian probability for each CPS observation 

(whether displaced worker or not) for which Appalachian residence is uncertain based on 

the CPS alone. 

Using this method two observations were then created from each CPS observation in a 

rural or unidentified metropolitan area of an Appalachian state. One, coded as an 

Appalachian observation, has a weight equal to WP and one, coded as a non-Appalachian 

observation, has a weight equal to W(1-P), where W is the appropriate CPS sample 

weight for the observation and P is the observation’s predicted probability of being in 

Appalachia. The Appalachian observations were used to estimate displacement statistics 

for Appalachia, its demographic groups, and its geographic areas as outlined above. 

In determining whether differences – between regions or within a region over time -- 

were statistically significant this study followed procedures recommended by the Bureau 

of Labor Statistics for determining statistically significant differences between national 

estimates (e.g, national estimates of a variable for two demographic groups at one point 

in time or for a variable at two points in time for one group). 
References 

Bradley, David H.; Stephen A. Herzenberg; and Howard Wial, 2001. An Assessment of Labor Force 

Participation Rates and Underemployment in Appalachia (Harrisburg: Keystone Research Center), 

prepared for the Appalachian Regional Commission under Contract #CO-12884I-1999, online at 

www.arc.gov. 

Herzenberg, Stephen; Mark Price; and Howard Wial, 2005. Displacement in Appalachia and the United 

States, 1993-2003: Findings Based on Five Displaced Worker Surveys (Harrisburg: Keystone Research 

Center), prepared for the Appalachian Regional Commission Under ARC Contract #CO-12884T-03, online 

at www.arc.gov. 

Jensen, Leif; Jill L. Findeis; and Qiuyan Wang. 1999. “Labor Supply and Underemployment in the 

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