An estimated 44,340 longer term resident households in rural Kentucky were studied to identify the variables that explained changes in household income status between 1974-79. In a nine-county area of south-central Kentucky, rapid employment growth between 1974 and 1979 created new job opportunities, but employment growth did not benefit all households or reduce the area's overall poverty level. For households located in the study area continuously between 1974 and 1979, the average relative income changed very little. Although 28% reported improved relative incomes, another 22% lost ground when household members either retired or reduced their annual work hours. Households headed by elderly persons maintained their relative incomes because they depended on public or private income assistance programs that were indexed to the Consumer Price Index. Households headed by women had limited benefit from the area's employment growth. Most of the women who benefited from the job growth lived in households headed by men. About 21% of the longer term resident households were classed as poor in both 1974 and 1979. The heads of these households were typically older and had lower educational attainment than heads of households never classified as poor. Forty-eight references and the regression models used in the study are appended. (JHZ)