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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.

Suggested Citation

  • Decker, Christopher S. & Thompson, Eric C. & Wohar, Mark E., 2009. "Determinants of State Labor Productivity: The Changing Role of Density," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 39(1), pages 1-10.
    • Handle: RePEc:ags:jrapmc:132420
    DOI: 10.22004/ag.econ.132420
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    1. Rangel González Erick & López Ornelas Luis Fernando, 2021. "Foreign Direct Investment and Labor Productivity in Regional Manufacturing Industry," Working Papers 2021-12, Banco de México.
    2. valdivia coria, joab dan & Valdivia Coria, Daney, 2019. "Determinantes de la dinámica en salarios [Determinants of wage dynamics]," MPRA Paper 105203, University Library of Munich, Germany.

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