Productivity divergence: state policy, corporate capture and labour power in the USA

Mildred E Warner and Yuanshuo Xu

Cambridge Journal of Regions, Economy and Society, 2021, vol. 14, issue 1, 51-68

Abstract: What factors explain the divergence between returns to labour and overall productivity across US counties? We model the role of power at the subnational state level: Republican partisan control, corporate lobbying (measured by ALEC-sponsored bills) and labour power (unionisation). We find where state policy is captured by corporate interests, this undermines inclusive growth. Our hierarchical models use 2012 data for county areas in the continental USA and find labour returns are higher in states with more unionisation, but lower in states with Republican control and more corporate penetration of state legislatures. Labour and local government power have limited effect.

Keywords: corporate lobbying power; unionisation; inclusive growth; state rescaling; economic productivity (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Cambridge Journal of Regions, Economy and Society is currently edited by Judith Clifton, Anna Davies, Betsy Donald, Emil Evenhuis, Stefania Fiorentino (Associate Editor), Harry Garretsen, Meric Gertler, Amy Glasmeier, Mia Gray, Robert Hassink, Dieter Kogler, Michael Kitson, Linda Lobao, Charles van Marrewijk, Ron Martin, Peter Sunley, Peter Tyler and Chun Yang

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