The Effects of Manufacturing on Educational Attainment and Real Income

Caitlin Cullen Donaldson and Suzanne O’Keefe

Economic Development Quarterly, 2013, vol. 27, issue 4, 316-324

Abstract: Economic development agencies seek industries to benefit their local economies. This article investigates how manufacturing composition affects a region’s income and educational attainment using data for individuals and Metropolitan Statistical Areas (MSAs) from 1970 through 2009. The results provide an understanding of the importance of changes in industry composition on the well-being of residents of an MSA. Using fixed-effects regressions, we model individual educational attainment and real income as a function of manufacturing composition, allowing for nonlinearities through squaring manufacturing composition. Across MSAs, high levels of manufacturing are associated with lower educational attainment and higher income; however, higher growth in manufacturing decreases both educational attainment and income.

Keywords: manufacturing; quality of life; industrial location; industry; job creation; jobs; state and local economic development policy (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ecdequ:v:27:y:2013:i:4:p:316-324

DOI: 10.1177/0891242413490794

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