Incentivizing the Inclusion of Low

Income Rural Peoples in the Virtual

Economy

February 28, 2021

By Isabela Yepes
Executive Summary
Rural america has seen historical decreases in job opportunities due to automation and
globalization trends. The same factor of the digital economy which has automated or outsourced
so many of the jobs in these communities, also provides the opportunity to include these rural
populations in the virtual economy and allow them more free choice in where to live. A policy
similar to existing programs of DEI and affirmative action but for low income rural workers can
be implemented to incentivize employers to hire low income rural unemployed workers in virtual
urban jobs. Virtual job trends are already in place so incentivizing employers to include rural
workers and train them in these positions will stabilize the trends of decreasing job opportunities
in low income rural communities.

Background
Rural workers even before the pandemic had a greater prevalence of working poverty
compared to urban workers. Rural households recovered more slowly than metropolitan
households to the 2008 financial crisis despite being less severely impacted (Bennet). Rural
communities have historically lacked the same resiliency as urban centers in a large part due to
the underlying trends of automation and globalization which have decreased the opportunities
for jobs. The pandemic furthers these trends and even more so because of rural communities'
heavy reliance on “industries that are highly susceptible to pandemic-related closures, such as
outdoor recreation, tourism, and factory work”(Mueller). This is why rural communities are
especially vulnerable to long term effects of COVID-19 economic shocks.

The pandemic is accelerating these challenges and putting a strain on these increasingly
vulnerable communities. It is no surprise that due to these conditions many choose to leave
rural communities to urban centers in search of greater economic opportunities. This trend is the
natural market consequence. However not everyone has the perfect liberty to move due to skill
sets, family ties and other barriers. Thus many stay and face the hardships relying on
government support or other means to get by. While unemployment benefits have provided a life
line to sustain these populations, these welfare services cannot be sustainable long term given
the underlying historical trends mentioned.

Proposed Recommendation
Virtual job trends are already in place so incentivizing employers to include rural workers
and train them in these positions will stabilize the trends of decreasing job opportunities in low
income rural communities. These jobs can be from offices in urban centers or rural centers as
long as they are virtual in nature. It can be presented as an option for rural low income people
on unemployment benefits to start an unpaid apprenticeship with an urban employer. The urban
employer can then receive tax credits or subsidized pay for the rural workers (similar to federal
work study for low income students) after the apprenticeship period if they decide to hire
them.These policies can be implemented in public partnership with a virtual community college
as well if the employer does not have the optimal means for training the virtual rural workforce.
This can be attained with a policy similar to existing programs of DEI and affirmative
action but for low income rural workers. In addition, because of the virtual nature of the work,
there can be additional incentive to hire formerly incarcerated peoples. The ultimate goal is to
incentivize employers to first train and then hire low income rural unemployed workers in virtual
urban jobs.

References
K. J. Bennett, M. Yuen, F. Blanco-Silva, Geographic differences in recovery after the great
recession. J. Rural Stud. 59, 111–117 (2018).Google Scholar

Mueller Impacts of the COVID-19 pandemic on rural America (2021)

https://www.pnas.org/content/118/1/2019378118