The Socioeconomic Impact of Coal in the Appalachian Region of Kentucky

Laura Oxley, MPA, JD

University of Kentucky’s Martin School of Public Policy & Administration

Kentucky Coal Counties

*Appalachian Regional Commission

War on Poverty

*http://www.usatoday.com/story/news/nation/2014/01/25/war-on-poverty-50th-anniversary/4326109/

Research Question

What is the socioeconomic impact of coal in Eastern Kentucky?

Measure Median Household Income Poverty Age-adjusted Mortality

Background

Past studies show a relationship between coal mining and socioeconomic standing in Appalachia by way of:

Mortality

Poverty & Unemployment

Health

Education

Data

Dependent Variables

Observations Mean Standard

Deviation Minimum Maximum

Median Income 1320 34,397 9,193 16,435 84,884

Poverty Rate 1320 .187 .068 .043 .448

Age-Adjusted Mortality

1320 1,001 141 646 1,589

*for the years 2000-2010

Data

Independent Variables

Observations Mean Standard

Deviation Minimum Maximum

Coal Mining Percent 559 .018 .047 0 .241

Diploma 1320 .368 .053 .088 .584

Bachelor Degree 1320 .117 .059 .007 .394

Unemployment Rate 1320 7.295 2.476 2.8 19.6

*for the years 2000-2010

Results: Median Income

Fixed Effects Model

Median Income Coef. Std. Error P value

Coal Mining Percent

-152.31 70.24 0.031

*For example, in Harlan County that is 95 additional jobs

Results: Poverty Rates

Between Effects Model

Poverty Rate Coef. Std. error P Value

Coal Mining Percent

.003 .00086 0.001

For Example, in Pike County, an additional 118 mining jobs could increase the number of people living in poverty by 4

Results: Age-Adjusted Mortality

Between Effects Model

Age-Adjusted Mortality

Coef. Std. error P Value

Coal Mining Percent

9.57 1.7600 0.000

For example, in Perry County, 103 additional jobs could increase mortality by 9

Recommendations

Continued study

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