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Measuring the Impact of Meat Packing and Processing Facilities in the Nonmetropolitan Midwest: A Difference-In-Differences Approach

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  • Artz, Georgeanne M.
  • Orazem, Peter
  • Otto, Daniel

Abstract

We measure how local growth in meatpacking and processing affects growth in local economies, government expenditures, and crime rates from 1990-2000 in nonmetropolitan counties of 12 Midwestern States. Propensity score matching is used as a check on possible non-random placement of meatpacking and processing plants. Results suggest that as the meat packing industryï¾’s share of a countyï¾’s total employment and wage bill rises, total employment growth increases. However, employment growth in other sectors slows, as does local wage growth. There is some evidence that slower wage growth swamps the employment growth so that aggregate income grows more slowly. We find no evidence that growth in the industry changes the growth rates for crime or government spending.

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 10190.

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Date of creation: 16 Nov 2005
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Publication status: Published in American Journal of Agricultural Economics, August 2007, vol. 89 no. 3, pp. 557-570
Handle: RePEc:isu:genres:10190

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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  1. Lass, Daniel A. & Findeis, Jill L. & Hallberg, Milton C., 1989. "Off-Farm Employment Decisions By Massachusetts Farm Households," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 18(2), October.
  2. Huffman, Wallace E., 1991. "Agricultural Household Models: Survey and Critique," Staff General Research Papers 11008, Iowa State University, Department of Economics.
  3. Hanan G. Jacoby & Emmanuel Skoufias, 1998. "Testing Theories of Consumption Behavior Using Information on Aggregate Shocks: Income Seasonality and Rainfall in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 80(1), pages 1-14.
  4. Hall, Robert E, 1978. "Stochastic Implications of the Life Cycle-Permanent Income Hypothesis: Theory and Evidence," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 86(6), pages 971-87, December.
  5. Skoufias, Emmanual & Parker, Susan W., 2002. "Labor market shocks and their impacts on work and schooling," FCND discussion papers 129, International Food Policy Research Institute (IFPRI).
  6. Joseph G. Altonji & Aloysius Siow, 1986. "Testing the Response of Consumption to Income Changes with (Noisy) PanelData," NBER Working Papers 2012, National Bureau of Economic Research, Inc.
  7. Paxson, Christina H, 1992. "Using Weather Variability to Estimate the Response of Savings to Transitory Income in Thailand," American Economic Review, American Economic Association, vol. 82(1), pages 15-33, March.
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