A study investigated the distribution of education levels in Tennessee's counties and examined factors affecting that distribution. It considered first the impacts of the changing global economy on Tennessee and the implications for education. The study found that Tennessee was likely to be harder hit than most states because of its dependence on manufacturing and the resurgence in rural poverty. Concern about adult literacy was generated by the demands of a changing economy and changing jobs. Study findings showed that education levels were very unequally distributed in Tennessee. Income levels were closely associated with the variation in education levels, with counties with higher per capita incomes consistently having higher proportions of high school graduates. The more rural counties tended to have lower education levels. The distribution of kinds of jobs was perhaps the most important factor associated with education levels. The trade, service, and construction industries were positively correlated with the percentage of high school graduates. The presence of a high proportion of manufacturing industry in a county had negative implications for education. The presence of substantial numbers of white collar jobs in a county ensured higher education levels. Positive correlations were found between local spending on education and the percentage of high school graduates. Jobs and income were closely linked with education. (YLB)