Sustainable Rural Economies

This chapter provides indicators of economic and social conditions in rural communities in and near forest and rangeland areas.

Associated Indicators


Housing affordability (mortgage, rent, foreclosure)

Housing affordability relates to economic conditions and can be measured in several ways: a. Monthly Cost > 30% of household income- The sum of payment for mortgages, real estate taxes, various insurances, utilities, fuels, mobile home costs, and condominium fees. b. Gross Rent > 30% of household income- The amount of the contract rent plus the estimated average monthly cost of utilities (electricity, gas, and water and sewer) and fuels (oil, coal, kerosene, wood, etc.) if these are paid for by the renter (or paid for the renter by someone else). c. Number of Foreclosure Filings- Number of households entering some phase of the foreclosure process.

Income by work location versus residence

This indicator is an indirect measure of income generated within workers’ areas of residence versus that from outside the area of residence. It indicates whether the residence community provides both economic and social benefits to the income earner. For rangeland communities, it indicates the extent to which rangelands provide the desirable rural setting where people want to live, but without the employment opportunities they require.

Income differentials from migration

This indicator measures the differential between household income of existing residents in an area and that of in-migrants to the area. It addresses whether the people moving in are wealthier (or less wealthy) than those already there. Retirees or the wealthy may not rely on local natural resources for livelihoods in the same fashion as long-time residents or lower income in-migrants. Moreover, disparities in income are one indication of a lack of community cohesion that can be a barrier to local action on behalf of rangeland protection or sustainable management.

Income Distribution

This indicator documents the degree to which different sources of economic wealth and growth within regions in rural California result in large disparities in the distribution of income. It covers a range of characteristics that assess the distribution of income and wealth across the different economic groups in rural areas, and the severity of the problems facing the local economically disadvantaged.

Income inequality

This indicator addresses economic distribution and speaks to social equity. It indicates the general welfare of the community by looking at the distribution of people across a range of incomes and measuring the income disparity in the community. It is a direct measure of economic and social stratification that complements poverty statistics. Lower levels of income inequality are associated with higher cohesion or integration of the community, leading to a more stable and resilient community.

Index of social structure quality

The quality of social structure might include such things as access to and quality of medical care (e.g., per-capita hospital beds, numbers of physicians and nurses), the presence and extent of cultural and community services, the extent and availability of public recreational facilities (expenditures per capita on parks, etc.), and crime rates, among other things. An alternative to the Index of Social Structure Quality discussed above might be a measure of community resilience. A resilient community actively develops and utilizes all of its capitals, includes all segments of the community in community endeavors, engages groups to work together, works strategically toward development of the community, and works to ensure equity across community members.

Job-specific wage and salary

This is a measure of the compensation of the average job. It is total earnings divided by total employment. Full-time and part-time jobs are counted at equal weight. Employees, sole proprietors, and active partners are included.

Length of residence

This indicator measures individuals’ longevity of residence in a particular community and relates to social cohesion and integration, as well as a willingness to interact with others for a common good. It is also a measure of community stability. A large proportion of new residents could point toward social dysfunction or low community cohesion that might have implications for rangeland sustainability.

Livelihoods

Livelihoods indicates the types of work people tend to be engaged in to make a living in rural California. This indicator also looks at transformations that have taken place in the recent past, due to changing economic conditions in rural California. This covers a broad range of characteristics that describe the changes through time in the way people earn a living in society.

Low-birth weight

Births of infants with a low birth weight (less than 2,500 grams, about 5.5 pounds) is an indicator of economic well-being of families, as well as a public health indicator.