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Labor-Force Heterogeneity as a Source of Agglomeration Economies in an Empirical Analysis of County-Level Determinants of Food Plant Entry

  • Davis, David E.
  • Schluter, Gerald E.

Results of this study show that a heterogeneous labor force serves to attract new food manufacturing investment. We conduct analysis for SIC 20, Food and Kindred Product Manufacturing, and disaggregate analysis on all nine three-digit SIC food industries. Heterogeneity variables are a significant factor in nearly all specifications. We also examine which factors create the greatest increases in the expected number of new establishments. Areas with a high degree of labor heterogeneity are found to have large advantages. Labor heterogeneity is among the most important factors attracting food manufacturing to urban areas over rural areas.

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File URL: http://mpra.ub.uni-muenchen.de/6654/2/MPRA_paper_6654.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6654.

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Date of creation: Dec 2005
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Publication status: Published in Journal of Agricultural and Resource Economics 3.30(2005): pp. 480-501
Handle: RePEc:pra:mprapa:6654
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Web page: http://mpra.ub.uni-muenchen.de

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