Labor-Force Heterogeneity as a Source of Agglomeration Economies in an Empirical Analysis of County-Level Determinants of Food Plant Entry

Results of this study show that a heterogeneous labor force serves to attract new food manufacturing investment. We conduct analysis for SIC 20, Food and Kindred Product Manufacturing, and disaggregate analysis on all nine three-digit SIC food industries. Heterogeneity variables are a significant factor in nearly all specifications. We also examine which factors create the greatest increases in the expected number of new establishments. Areas with a high degree of labor heterogeneity are found to have large advantages. Labor heterogeneity is among the most important factors attracting food manufacturing to urban areas over rural areas.


Issue Date:
2005-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/30975
Published in:
Journal of Agricultural and Resource Economics, Volume 30, Number 3
Page range:
480-501
Total Pages:
22




 Record created 2017-04-01, last modified 2017-08-24

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