IDEAS home Printed from https://ideas.repec.org/p/ags/aaea05/19242.html
   My bibliography  Save this paper

Meat Packing and Processing Facilities in the Non-Metropolitan Midwest: Blessing or Curse?

Author

Listed:
  • Artz, Georgeanne M.
  • Orazem, Peter F.
  • Otto, Daniel M.

Abstract

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.

Suggested Citation

  • Artz, Georgeanne M. & Orazem, Peter F. & Otto, Daniel M., 2005. "Meat Packing and Processing Facilities in the Non-Metropolitan Midwest: Blessing or Curse?," 2005 Annual meeting, July 24-27, Providence, RI 19242, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea05:19242
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/19242
    Download Restriction: no

    References listed on IDEAS

    as
    1. Huffman, Wallace E. & Miranowski, John A., 1996. "Immigration, Meat Packing, and Trade: Implications for Iowa," ISU General Staff Papers 199612010800001284, Iowa State University, Department of Economics.
    2. Glaeser, Edward L. & Scheinkman, JoseA. & Shleifer, Andrei, 1995. "Economic growth in a cross-section of cities," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 117-143, August.
    3. 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.
    4. 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.
    5. 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 1126-1152, 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.
    6. Angrist, Joshua D. & Krueger, Alan B., 1999. "Empirical strategies in labor economics," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 23, pages 1277-1366 Elsevier.
    7. 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.
    8. 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.
    9. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Community/Rural/Urban Development;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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). General contact details of provider: http://edirc.repec.org/data/aaeaaea.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.