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MONEY

Multiple factors influence higher rural wages

Barbara Leader
bleader@thenewsstar.com

Higher average wages in two small rural northeastern Louisiana parishes over the past 10 years may not entirely represent increases in individual personal incomes but could also be a function of outward migration from those parishes.

According to the U.S. Department of Labor Quarterly census of employment and wages, when comparing wages in 2004 to wages in 2014, both East Carroll and West Carroll show significant improvement.

Conversely, Morehouse Parish, which lost its major employer International Paper during that time frame, shows a consistent downward trend in wages.

Wages are the income paid for labor and may represent only a portion of personal income which also could include supplemental income, retirement and Social Security.

In Morehouse Parish, average wages adjusted for inflation declined from $34,419 in 2004 to $28,875 in 2013.

"The biggest loser, economically, in Louisiana is Morehouse Parish," economist Bob Eisenstadt said. "Morehouse has been the biggest loser in the state consistently for several years driven by the loss of International Paper but also impacted by a loss in the retail sector as a result of the closure."

Although population has stayed relatively steady across northern Louisiana in the past 10 years, there has been a decline in outlying parishes as residents move toward Ouachita Parish for more higher paying jobs.

Eisenstadt said because of the small population in East Carroll and West Carroll parishes, any move can have a large impact on the average wage.

"Possibly while some of the lower wage jobs are drying up, there is outmigration," Eisenstadt said. "It creates the impression that income is rising, but, in reality it could be low wage jobs are leaving, leaving higher paying jobs which raises the overall average."

Average wages in East Carroll Parish grew from $26,802 in 2004 to $31,136 in 2013. In West Carroll Parish average wages increased from $24,877 to $28,855.

Oak Grove Mayor Adam Holland said a West Carroll administration dedicated to continuing economic development has increased employment opportunities in the parish.

In the past 10 years, a Super Wal-Mart, an increase in hiring by Ruffin Building Systems and renovations to the West Carroll Memorial Hospital have provided jobs in the parish.

During the 10 years of the study, average wages in Ouachita Parish have remained steady increasing only slightly $35,051 to $36,782.

Follow Barbara Leader on Twitter @barbaraleader1.