Meat Packing and Processing Facilities in the Non-Metropolitan Midwest: Blessing or Curse?
Growth in the meat packing and processing industry in the Midwestern United States has generated a significant amount of debate regarding the costs and benefits of this type of economic development. This research employs 1990-2000 proprietary data from the Bureau of Labor Statistics' Longitudinal Database (LDB) to investigate the effects of this industry on social and economic outcomes in non-metropolitan counties of twelve Midwestern states. The empirical specification uses a difference-in-differences specification to measure the effect of industry growth on local economic growth, government expenditures, and crime. Propensity score matching is used as a check on possible non-random placement of meat packing and processing plants. Results suggest that as the meat packing industry's share of a country's total employment and wage bill rises, total employment growth increases. However, employment growth in other sectors slows, as does local wage growth. There is some evidence that slower wage growth swamps the employment growth so that aggregate income grows more slowly. We find no evidence that growth in the industry changes the growth rates for crime or government spending.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hotchkiss, Julie L. & Moore, Robert E. & Zobay, Stephanie M., 2002. "The impact of the 1996 Summer Olympic Games on employment and wages in Georgia," MPRA Paper 9328, University Library of Munich, Germany.
- Kelly D. Edmiston, 2004. "The Net Effects of Large Plant Locations and Expansions on County Employment," Journal of Regional Science, Wiley Blackwell, vol. 44(2), pages 289-320.
- Moretti, Enrico, 2004.
"Bidding for Industrial Plants: Does Winning a 'Million Dollar Plant' Increase Welfare?,"
Santa Cruz Department of Economics, Working Paper Series
qt5cz0h23t, Department of Economics, UC Santa Cruz.
- Michael Greenstone & Enrico Moretti, 2003. "Bidding for Industrial Plants: Does Winning a 'Million Dollar Plant' Increase Welfare?," NBER Working Papers 9844, National Bureau of Economic Research, Inc.
- Glaeser, E.L. & Scheinkman, J.A., 1993.
"Economic Growth in a Cross-Section of Cities,"
Harvard Institute of Economic Research Working Papers
1645, Harvard - Institute of Economic Research.
- William F. Fox & Matthew N. Murray, 2004. "Do Economic Effects Justify the Use of Fiscal Incentives?," Southern Economic Journal, Southern Economic Association, vol. 71(1), pages 78-92, July.
- Joshua Angrist & Alan Krueger, 1998.
"Empirical Strategies in Labor Economics,"
780, Princeton University, Department of Economics, Industrial Relations Section..
- Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992.
"Growth in Cities,"
Journal of Political Economy,
University of Chicago Press, vol. 100(6), pages 1126-52, December.
- Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
- Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
- Julie L. Hotchkiss & Robert E. Moore & Stephanie M. Zobay, 2003. "Impact of the 1996 Summer Olympic Games on Employment and Wages in Georgia," Southern Economic Journal, Southern Economic Association, vol. 69(3), pages 691-704, January.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea05:19242. 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: (AgEcon Search)
If references are entirely missing, you can add them using this form.