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

David E. Davis () and Gerald Schluter ()

Journal of Agricultural and Resource Economics, 2005, vol. 30, issue 03

Abstract: 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.

Keywords: agglomeration externalities; business location determinants; food manufacturing; labor heterogeneity; rural development; Labor and Human Capital (search for similar items in EconPapers)
Date: 2005
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Working Paper: Labor-Force Heterogeneity as a Source of Agglomeration Economies in an Empirical Analysis of County-Level Determinants of Food Plant Entry (2005)
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