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Sprouting Cities: How Rural America Industrialized

Author

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  • Fabian Eckert
  • John Juneau
  • Michael Peters

Abstract

We study the joint process of urbanization and industrialization in the US economy between 1880 and 1940. We show that only a small share of aggregate industrialization is accounted for by the relocation of workers from remote rural areas to industrial hubs like Chicago or New York City. Instead, most sectoral shifts occurred within rural counties, dramatically transforming their sectoral structure. Most within-county industrialization occurred through the emergence of new "factory" cities with notably higher manufacturing shares rather than the expansion of incumbent cities. In contrast, today's shift toward services seems to benefit large incumbent cities the most.

Suggested Citation

  • Fabian Eckert & John Juneau & Michael Peters, 2023. "Sprouting Cities: How Rural America Industrialized," AEA Papers and Proceedings, American Economic Association, vol. 113, pages 87-92, May.
    • Handle: RePEc:aea:apandp:v:113:y:2023:p:87-92
    DOI: 10.1257/pandp.20231075
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    Cited by:

    1. Gómez-Lobo, Andrés & Oviedo, Daniel, 2023. "Spatial inequalities in Latin America: mapping aggregate to micro-level disparities," LSE Research Online Documents on Economics 120691, London School of Economics and Political Science, LSE Library.

    More about this item

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
    • N60 - Economic History - - Manufacturing and Construction - - - General, International, or Comparative
    • N90 - Economic History - - Regional and Urban History - - - General, International, or Comparative
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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