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

David Davis () and Gerald Schluter ()

MPRA Paper from University Library of Munich, Germany

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 (search for similar items in EconPapers)
JEL-codes: Q13 R11 (search for similar items in EconPapers)
Date: 2005-12
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Citations: View citations in EconPapers (19)

Published in Journal of Agricultural and Resource Economics 3.30(2005): pp. 480-501

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Related works:
Journal Article: 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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