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Is It a Jungle Out There?: Meat Packing, Immigrants and Rural Communities

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  • Artz, Georgeanne M.
  • Jackson, Rebecca
  • Orazem, Peter

Abstract

Over the past 45 years, meatpacking has shifted from a predominantly urban to a predominantly rural industry. Meatpacking plants can represent a significant share of a rural community's employment. As a traditional employer of immigrants, these plants can also alter significantly the demographic composition of a rural community. These changes have led to numerous controversies regarding whether these plants impose social or economic costs on their host communities. This study uses comments culled from various media to identify the most prominent controversies, including whether meatpacking presence leads to local language problems, social service expenses, special needs schooling or displacement of native-born citizens. These controversies can be recast as hypotheses that can be subjected to empirical tests. We show that the meat processing industry has had large impacts on the demographic composition of rural communities and their schools including increases in populations requiring specialized services. However, there is no evidence that the industry increases per capita government expenditures suggesting that rural communities trade off the economic benefits of having these large employers against the costs of accommodating the needs of the new residents.

Suggested Citation

  • Artz, Georgeanne M. & Jackson, Rebecca & Orazem, Peter, 2010. "Is It a Jungle Out There?: Meat Packing, Immigrants and Rural Communities," Staff General Research Papers Archive 12966, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:12966
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    References listed on IDEAS

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    1. Artz, Georgeanne M. & Orazem, Peter F. & Otto, Daniel M., 2005. "Measuring the Impact of Meat Packing and Processing Facilities in the Nonmetropolitan Midwest: A Difference-in-Differences Approach," Working Papers 18219, Iowa State University, Department of Economics.
    2. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    3. McGranahan, David A., 1998. "Can Manufacturing Reverse Rural Great Plains Depopulation?," Rural America/ Rural Development Perspectives, United States Department of Agriculture, Economic Research Service, vol. 13(1), February.
    4. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
    5. Wallace HUFFMAN & John A. MIRANOWSKI, 1996. "Immigration, Meat Packing, And Trade: Implications For Iowa," Staff Papers 285, Iowa State University Department of Economics.
    6. Georgeanne M. Artz & Peter F. Orazem & Daniel M. Otto, 2007. "Measuring the Impact of Meat Packing and Processing Facilities in Nonmetropolitan Counties: A Difference-in-Differences Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 557-570.
    7. Milton Madison & James MacDonald & Michael Ollinger, 2000. "Technological Change and Economies of Scale in U.S. Poultry Slaughter," Working Papers 00-05, Center for Economic Studies, U.S. Census Bureau.
    8. Orazem, Peter F. & Wohlgemuth, Darin & Huang, Tzu-Ling, 2002. "The Causes And Consequences Of Rural Immigrant Population Growth, 1950-1990," 2002 Annual meeting, July 28-31, Long Beach, CA 19750, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Milton Madison, 2005. "Technological Change and Economies of Scale in U.S. Poultry Processing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 116-129.
    10. James M. MacDonald & Michael E. Ollinger, 2005. "Technology, Labor Wars, and Producer Dynamics: Explaining Consolidation in Beefpacking," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 1020-1033.
    11. Leistritz, F. Larry & Sell, Randall S., 2001. "Socioeconomic Impacts of Agricultural Processing Plants," Rural America/ Rural Development Perspectives, United States Department of Agriculture, Economic Research Service, vol. 16(1), May.
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    Cited by:

    1. A. Ford Ramsey & Barry Goodwin & Mildred Haley, 2021. "Labor Dynamics and Supply Chain Disruption in Food Manufacturing," NBER Chapters, in: Risks in Agricultural Supply Chains, National Bureau of Economic Research, Inc.
    2. Grace Melo & Gregory Colson & Octavio A. Ramirez, 2014. "Hispanic American Opinions toward Immigration and Immigration Policy Reform Proposals," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 36(4), pages 604-622.
    3. Cho, Seung Jin & Lee, Jun Yeong & Winters, John V., 2020. "COVID-19 Employment Status Impacts on Food Sector Workers," ISU General Staff Papers 202006080700001107, Iowa State University, Department of Economics.
    4. Sneeringer, Stacy E. & Hertz, Thomas, 2010. "Local Effects of Hog Production on Farm and Non-Farm Economic Outcomes," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61463, Agricultural and Applied Economics Association.
    5. Krumel, Thomas & Goodrich, Corey, 2021. "COVID-19 Working Paper: Meatpacking Working Conditions and the Spread of COVID-19," USDA Miscellaneous 315417, United States Department of Agriculture.

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    More about this item

    Keywords

    Welfare; Rural; meatpacking; immigration; ESL; public expense; social cost;
    All these keywords.

    JEL classification:

    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative

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