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Rural Industry Clusters Raise Local Earnings

Author

Listed:
  • Gibbs, Robert M.
  • Bernat, G. Andrew Jr.

Abstract

Industry clusters have become a popular strategy for rural economic development, yet their benefits to the local areas have not been fully examined. Labor is expected to be more productive within clusters, which should translate into higher wages. Our analysis confirms this, showing that workers’ earnings in rural industry clusters are about 13 percent higher than those of comparable workers outside clusters. The wage boost is similar for workers regardless of age or education level.

Suggested Citation

  • Gibbs, Robert M. & Bernat, G. Andrew Jr., 1997. "Rural Industry Clusters Raise Local Earnings," Rural America/ Rural Development Perspectives, United States Department of Agriculture, Economic Research Service, vol. 12(3), June.
    • Handle: RePEc:ags:uersra:289761
    DOI: 10.22004/ag.econ.289761
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    Citations

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    Cited by:

    1. Georgeanne M. Artz & Younjun Kim & Peter F. Orazem, 2016. "Does Agglomeration Matter Everywhere?: New Firm Location Decisions In Rural And Urban Markets," Journal of Regional Science, Wiley Blackwell, vol. 56(1), pages 72-95, January.
    2. Marasteanu, I. Julia & Jaenicke, Edward C., 2013. "Agglomeration and Spatial Dependence in Certified Organic Operations in the United States," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149551, Agricultural and Applied Economics Association.
    3. Elif Alkay & Geoffrey Hewings, 2012. "The determinants of agglomeration for the manufacturing sector in the Istanbul metropolitan area," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(1), pages 225-245, February.
    4. Marasteanu, I. Julia & Jaenicke, Edward C., 2014. "Clusters of Organic Operations and their Impact on Regional Economic Growth in the United States," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170336, Agricultural and Applied Economics Association.
    5. Lanhua Zhang & Manxiu Ning & Chaoying Yang, 2023. "Evaluation of the Mechanism and Effectiveness of Digital Inclusive Finance to Drive Rural Industry Prosperity," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    6. Colleen K. Chrisinger & Christopher S. Fowler & Rachel Garshick Kleit, 2015. "Industry Clusters and Employment Outcomes in Washington State," Economic Development Quarterly, , vol. 29(3), pages 199-210, August.
    7. repec:rri:wpaper:200610 is not listed on IDEAS
    8. Todd M. Gabe, 2004. "Establishment Growth in Small Cities and Towns," International Regional Science Review, , vol. 27(2), pages 164-186, April.
    9. Cheryl Brown & Daniel Eades, 2006. "Identifying Spatial Clusters within U.S. Organic Agriculture," Working Papers Working Paper 2006-10, Regional Research Institute, West Virginia University.
    10. repec:rre:publsh:v:38:y:2008:i:1:p:45-65 is not listed on IDEAS
    11. Jaenicke, Edward C. & Goetz, Stephan J. & Wu, Ping-Chao & Dimitri, Carolyn, 2009. "Identifying and Measuring the Effect of Firm Clusters Among Certified Organic Processors and Handlers," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49205, Agricultural and Applied Economics Association.

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