The persistence of poverty in the modem American Economy, with rates of pov
erty in some areas approaching those of less advanced economies, remains a
central concern among policy makers. Therefore, in this study we use U.S. c
ounty-level data to explore potential explanations for the observed regiona
l variation in the rates of poverty. The use of counties allows Examination
of both nonmetropolitan area and metropolitan area poverty factors conside
red include those that relate to both area economic performance and area de
mographic composition. Specific county economic factors examined include ec
onomic growth, industry restructuring, and labor market skills mismatches.