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The objective of this paper is to empirically examine the relationship between changes in per capita manufacturing employment, manufacturing earnings per worker and human capital investment in nearly 3,000 U.S. counties over the period 1980-90. Two key hypotheses are tested: 1. Communities in which residents invested more heavily in human capital (formal education) in the 1980s were in a better position to stem the erosion of manufacturing jobs, and experienced more rapid increases in manufacturing earnings per worker. 2.Communities in which manufacturing jobs and earnings per worker both increased invested more heavily in human capital, ceteris paribus.


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