US Educational attainment in rural America reached a historic high in 2000, with nearly one in six rural adults holding a 4-year college degree, and more than three in four completing high school. As the demand for workers with higher educational qualifications rises, many rural policymakers have come to view local educational levels as a critical determinant of job and income growth in their communities. Attracting employers who provide higher skill jobs and encouraging educational gains are seen as complementary components of a high-skill, high-wage development strategy.

But policymakers are faced with two key questions. First, does a better educated population lead to ...

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