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The Effects of Manufacturing on Educational Attainment and Real Income

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  • Caitlin Cullen Donaldson
  • Suzanne O’Keefe

Abstract

Economic development agencies seek industries to benefit their local economies. This article investigates how manufacturing composition affects a region’s income and educational attainment using data for individuals and Metropolitan Statistical Areas (MSAs) from 1970 through 2009. The results provide an understanding of the importance of changes in industry composition on the well-being of residents of an MSA. Using fixed-effects regressions, we model individual educational attainment and real income as a function of manufacturing composition, allowing for nonlinearities through squaring manufacturing composition. Across MSAs, high levels of manufacturing are associated with lower educational attainment and higher income; however, higher growth in manufacturing decreases both educational attainment and income.

Suggested Citation

  • Caitlin Cullen Donaldson & Suzanne O’Keefe, 2013. "The Effects of Manufacturing on Educational Attainment and Real Income," Economic Development Quarterly, , vol. 27(4), pages 316-324, November.
    • Handle: RePEc:sae:ecdequ:v:27:y:2013:i:4:p:316-324
    DOI: 10.1177/0891242413490794
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    References listed on IDEAS

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    Cited by:

    1. Stephan D. Whitaker, 2016. "Industrial Composition and Intergenerational Mobility," Working Papers (Old Series) 1533R, Federal Reserve Bank of Cleveland, revised 22 Oct 2020.

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