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Determinants of State Labor Productivity: The Changing Role of Density

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  • Decker, Christopher S.
  • Thompson, Eric C.
  • Wohar, Mark E.

Abstract

This study examines the determinants of state labor productivity during the 1989 to 2000 period. Using the model developed by Carlino and Voith (1992), we estimate how state cha-racteristics such as population density, education, industrial structure, and business amenities (such as crime rates), influence state labor productivity. We also estimate our model over two sub-periods (1989 to 1995 and 1996 to 2000) in order to isolate the labor productivity boom of the late 1990s. Our aggregate results for the full 1989 to 2000 period were consistent with pre-vious research. However, the determinants of labor productivity changed during the produc-tivity boom of the late 1990s. During the period 1996 to 2000 greater industrial diversity ap-peared to have stimulated labor productivity, whereas in the earlier period, 1989 to 1995, spe-cialization promoted labor productivity. Finally, while population density contributed to labor productivity during the earlier period, population density proved not to be a statistically significant determinant of labor productivity during the period 1996 to 2000.

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Bibliographic Info

Article provided by Mid-Continent Regional Science Association in its journal Journal of Regional Analysis and Policy.

Volume (Year): 39 (2009)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:ags:jrapmc:132420

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Related research

Keywords: Labor and Human Capital; Productivity Analysis;

References

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  1. Alan B. Krueger & Mikael Lindahl, 2000. "Education for Growth: Why and For Whom?," NBER Working Papers 7591, National Bureau of Economic Research, Inc.
  2. Wheeler, Christopher H., 2006. "Productivity and the geographic concentration of industry: The role of plant scale," Regional Science and Urban Economics, Elsevier, vol. 36(3), pages 313-330, May.
  3. Herbert Smoluk & Bruce Andrews, 2005. "A prerequisite for meaningful state economic performance comparisons: Adjusting for population density," The Annals of Regional Science, Springer, vol. 39(2), pages 253-272, 06.
  4. Antonio Ciccone & Robert E. Hall, 1993. "Productivity and the Density of Economic Activity," NBER Working Papers 4313, National Bureau of Economic Research, Inc.
  5. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-37, October.
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  8. Barbera, Anthony J. & McConnell, Virginia D., 1990. "The impact of environmental regulations on industry productivity: Direct and indirect effects," Journal of Environmental Economics and Management, Elsevier, vol. 18(1), pages 50-65, January.
  9. Telle, Kjetil & Larsson, Jan, 2007. "Do environmental regulations hamper productivity growth? How accounting for improvements of plants' environmental performance can change the conclusion," Ecological Economics, Elsevier, vol. 61(2-3), pages 438-445, March.
  10. Carlino, Gerald A. & Voith, Richard, 1992. "Accounting for differences in aggregate state productivity," Regional Science and Urban Economics, Elsevier, vol. 22(4), pages 597-617, November.
  11. Christopher S. Decker, 2005. "Do Regulators Respond to Voluntary Pollution Control Efforts? A Count Data Analysis," Contemporary Economic Policy, Western Economic Association International, vol. 23(2), pages 180-194, 04.
  12. Mullen, John K. & Williams, Martin, 1994. "Marginal tax rates and state economic growth," Regional Science and Urban Economics, Elsevier, vol. 24(6), pages 687-705, December.
  13. William L. Weber & Bruce Domazlicky, 2001. "Productivity Growth and Pollution in State Manufacturing," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 195-199, February.
  14. Brown, Stephen P. A. & Hayes, Kathy J. & Taylor, Lori L., 2003. "State and Local Policy, Factor Markets, and Regional Growth," The Review of Regional Studies, Southern Regional Science Association, vol. 33(1), pages 40-60.
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