Human capital theory suggests that job opportunities will create incentives for students to invest, or not invest, in education. If the economic structure of the community does not reward education, students might drop out of school. The existing research on this topic, which is based on several disciplinary perspectives, is reviewed. Data from Virginia indicate that a higher percentage of service occupations in the county increases the dropout rate. A higher percentage of managerial/professional occupations decreases the dropout rate and increases the percentage of graduates continuing their education. In addition, the model tested for differences in educational achievement in Appalachian and non-Appalachian counties. Appalachian counties differ from urban, but not from other rural counties. Urban counties have a higher percentage of both dropouts and graduates continuing their education.