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The Productivity of U.S. States Since 1880

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Author Info
Kris James Mitchener
Ian W. McLean
Abstract

This study uses state-level variation in labor productivity levels at twenty-year intervals between 1880 and 1980 to examine the relative importance of institutional and geographical influences in explaining observed and persistent differences in standards of living over time and across regions. Focusing on fundamental rather than proximate influences, we find that both institutional characteristics and some physical geography characteristics account for a high proportion of the differences in state productivity levels: states with navigable waterways, a large minerals endowment, and no slaves in 1860, on average, had higher labor productivity levels throughout the sample period. However, we find little support for two other influences that have previously received attention climate and latitude.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9445.

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Date of creation: Jan 2003
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Handle: RePEc:nbr:nberwo:9445

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Find related papers by JEL classification:
N1 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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  1. Sukkoo Kim, 2007. "Institutions and U.S. Regional Development: A Study of Massachusetts and Virginia," NBER Working Papers 13431, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Bruhn, Miriam & Gallego, Francisco A., 2008. "Good, bad, and ugly colonial activities : studying development across the Americas," Policy Research Working Paper Series 4641, The World Bank. [Downloadable!]
    Other versions:
  3. Lagerlöf, Nils-Petter & Basher, Syed A., 2005. "Geography, population density, and per-capita income gaps across US states and Canadian provinces," MPRA Paper 369, University Library of Munich, Germany, revised 28 Sep 2006. [Downloadable!]
  4. González-Val, Rafael, 2009. "What makes cities bigger and richer? Evidence from 1990-2000 in the US," MPRA Paper 15636, University Library of Munich, Germany. [Downloadable!]
  5. W. Robert Reed, 2006. "The Robust Relationship Between Taxes and State Economic Growth," Working Papers in Economics 06/13, University of Canterbury, Department of Economics. [Downloadable!]
  6. Alma Romero-Barrutieta & Eric V. Clifton, 2006. "Institutions v. Geography: Sub-National Evidence from the United States," IMF Working Papers 06/169, International Monetary Fund. [Downloadable!]
  7. Nathan Nunn, 2009. "The Importance of History for Economic Development," NBER Working Papers 14899, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Ian W. McLean, 2005. "Why Was Australia So Rich?," Development and Comp Systems 0509003, EconWPA. [Downloadable!]
  9. Gustavo J Bobonis, 2008. "Endowments, Coercion, and the Historical Containment of Education," Working Papers tecipa-335, University of Toronto, Department of Economics. [Downloadable!]
  10. Naritomi, Joana & Soares, Rodrigo R. & Assunção, Juliano J., 2009. "Institutional Development and Colonial Heritage within Brazil," IZA Discussion Papers 4276, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  11. Nunn, Nathan, 2007. "Slavery, Inequality, and Economic Development in the Americas: An Examination of the Engerman-Sokoloff Hypothesis," MPRA Paper 4080, University Library of Munich, Germany. [Downloadable!]
  12. Daniel Berkowitz & Karen Clay, . "Initial Conditions, Institutional Dynamics and Economic Performance: Evidence from the American States," American Law & Economics Association Annual Meetings 1083, American Law & Economics Association. [Downloadable!]
    Other versions:
  13. Klein, Alexander, 2009. "Personal Income of U.S. States : Estimates for the Period 1880–1910," The Warwick Economics Research Paper Series (TWERPS) 916, University of Warwick, Department of Economics. [Downloadable!]
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