Reassessing the 'Massachusetts miracle': reindustrialization and balanced growth, or convergence to 'Manhattanization'?
Research suggests that conventional wisdom about the 'miraculous' reindustrialization of the regional economy of Massachusetts is much too simplistic. The decline in unemployment was as much the result of low average-labor-force growth as it was of rapid job creation. Also Massachusetts has experienced increases in income and wage inequality, and there has been a dramatic slowdown in employment growth. The manufacturing sector is still deindustrializing and high-tech job growth has virtually ceased. Several complementary explanations are offered for these changes. First, a chronic labor shortage is constraining company expansion. Second the declining rate of growth of federal military procurement may particularly affect Massachusetts. Third, the state economy may have begun to converge on a new equilibrium structure. A shift - share analysis of employment changes during the periods 1973 - 79, 1979 - 84, and 1984 - 87 reveals that the state's competitive advantage has narrowed to a small number of business services and their associated real estate and construction activities.
When requesting a correction, please mention this item's handle: RePEc:pio:envira:v:21:y:1989:i:6:p:771-801. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Neil Hammond)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.