This study explores earnings differentials between urban and rural labor markets. I estimated the probability that each college educated individual in Iowa State University alumni database selected one of the full-time farming, non-farm rural self-employment, rural wage work, urban self-employment, and urban wage work. I then estimated the wage differential for each occupation group relative to its nearest matched control using propensity score matching technique. I found that urban wage workers earn more than rural wage workers, consistent with urban wage premium. Likewise, urban non-farm self-employed earn more than rural wage workers, whereas rural non-farm self-employed earn similar earnings as rural wage workers. Full-time farmers, however, earn less than observationally similar persons working as off-farm wage workers in rural. There exists a substantial urban premium for earnings but net loss from farming.