IDEAS home Printed from https://ideas.repec.org/a/sae/ecdequ/v27y2013i4p316-324.html
   My bibliography  Save this article

The Effects of Manufacturing on Educational Attainment and Real Income

Author

Listed:
  • Caitlin Cullen Donaldson
  • Suzanne O’Keefe

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.

Suggested Citation

  • Caitlin Cullen Donaldson & Suzanne O’Keefe, 2013. "The Effects of Manufacturing on Educational Attainment and Real Income," Economic Development Quarterly, , vol. 27(4), pages 316-324, November.
    • Handle: RePEc:sae:ecdequ:v:27:y:2013:i:4:p:316-324
    DOI: 10.1177/0891242413490794
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0891242413490794
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0891242413490794?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David R. Howell & Susan S. Wieler, 1998. "Skill-Biased Demand Shifts and the Wage Collapse in the United States: A Critical Perspective," Eastern Economic Journal, Eastern Economic Association, vol. 24(3), pages 343-366, Summer.
    2. Timothy Dunne & Lucia Foster & John Haltiwanger & Kenneth R. Troske, 2004. "Wage and Productivity Dispersion in United States Manufacturing: The Role of Computer Investment," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 397-430, April.
    3. Francisco J. Buera & Joseph P. Kaboski, 2012. "The Rise of the Service Economy," American Economic Review, American Economic Association, vol. 102(6), pages 2540-2569, October.
    4. Janice Compton & Robert A. Pollak, 2007. "Why Are Power Couples Increasingly Concentrated in Large Metropolitan Areas?," Journal of Labor Economics, University of Chicago Press, vol. 25(3), pages 475-512.
    5. Eltis,David & Lewis,Frank D. & Sokoloff,Kenneth L. (ed.), 2009. "Human Capital and Institutions," Cambridge Books, Cambridge University Press, number 9780521769587, September.
    6. E. D. Gould, 2007. "Cities, Workers, and Wages: A Structural Analysis of the Urban Wage Premium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(2), pages 477-506.
    7. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-1381, September.
    8. Yamashita, Nobuaki, 2010. "The impact of foreign outsourcing on wage inequality in US manufacturing: New evidence," Economics Letters, Elsevier, vol. 107(1), pages 46-48, April.
    9. Leamer, Edward E, 1996. "Wage Inequality from International Competition and Technological Change: Theory and Country Experience," American Economic Review, American Economic Association, vol. 86(2), pages 309-314, May.
    10. George J. Borjas & Valerie A. Ramey, 1995. "Foreign Competition, Market Power, and Wage Inequality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 1075-1110.
    11. Gregory Acs & Sheldon Danziger, 1993. "Educational Attainment, Industrial Structure, and Male Earnings through the 1980s," Journal of Human Resources, University of Wisconsin Press, vol. 28(3), pages 618-648.
    12. Todd Easton & Mary King, 2000. "Differences in Wage Levels Among Metropolitan Areas: Less-educated Workers in the United States," Regional Studies, Taylor & Francis Journals, vol. 34(1), pages 21-27.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stephan D. Whitaker, 2016. "Industrial Composition and Intergenerational Mobility," Working Papers (Old Series) 1533R, Federal Reserve Bank of Cleveland, revised 22 Oct 2020.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joseph Francois & Douglas R. Nelson, 2000. "Victims of Progress: Economic Integration, Specialization, and Wages for Unskilled Labor," Tinbergen Institute Discussion Papers 00-065/2, Tinbergen Institute.
    2. Michaelsen, Maren M., 2011. "The Hidden Increase in Wage Inequality: Skill-biased and Ability-biased Technological Change," Ruhr Economic Papers 262, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Fredrik Carlsen & Stefan Leknes, 2022. "For whom are cities good places to live?," Regional Studies, Taylor & Francis Journals, vol. 56(12), pages 2177-2190, December.
    4. Pasquale Tridico, 2015. "The Rise Of Income Inequality In Oecd Countries," Departmental Working Papers of Economics - University 'Roma Tre' 0201, Department of Economics - University Roma Tre.
    5. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
    6. Paul Beaudry & David A. Green, 2005. "Changes in U.S. Wages, 19762000: Ongoing Skill Bias or Major Technological Change?," Journal of Labor Economics, University of Chicago Press, vol. 23(3), pages 609-648, July.
    7. Todd Easton & Mary King, 2000. "Differences in Wage Levels Among Metropolitan Areas: Less-educated Workers in the United States," Regional Studies, Taylor & Francis Journals, vol. 34(1), pages 21-27.
    8. Mary Kate Batistich & Timothy N Bond, 2023. "Stalled Racial Progress and Japanese Trade in the 1970s and 1980s," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(6), pages 2792-2821.
    9. Maren M. Michaelsen, 2011. "The Hidden Increase in Wage Inequality: Skill-biased and Ability-biased Technological Change," Ruhr Economic Papers 0262, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    10. Weiss, Matthias, 2008. "Skill-biased technological change: Is there hope for the unskilled?," Economics Letters, Elsevier, vol. 100(3), pages 439-441, September.
    11. Edward N. Wolff, "undated". "Skills, Computerization, and Earnings in the Postwar U.S. Economy," Economics Working Paper Archive wp_331, Levy Economics Institute.
    12. Ariell Reshef, 2013. "Is Technological Change Biased Towards the Unskilled in Services? An Empirical Investigation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(2), pages 312-331, April.
    13. Jaimin Lee & Seong-Hoon Cho, 2017. "Free trade agreement and transport service trade," The World Economy, Wiley Blackwell, vol. 40(7), pages 1494-1512, July.
    14. Lee, Chinkook & Hanson, Kenneth, 1997. "The Factor Content of U.S. Trade: An Explanation for the Widening Wage Gap?," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35781, Western Agricultural Economics Association.
    15. Barrett, Alan & FitzGerald, John & Nolan, Brian, 2002. "Earnings inequality, returns to education and immigration into Ireland," Labour Economics, Elsevier, vol. 9(5), pages 665-680, November.
    16. David R. Howell, 1993. "Technological Change and the Demand for Skills in the 1980s: Does Skill Mismatch Explain the Growth of Low Earnings?," Economics Working Paper Archive wp_101, Levy Economics Institute.
    17. Frederick Guy & Peter Skott, 2008. "Information and Communications Technologies, Coordination and Control, and the Distribution of Income," Journal of Income Distribution, Ad libros publications inc., vol. 17(3-4), pages 71-92, September.
    18. Levernier, William & Partridge, Mark D. & Rickman, Dan S., 1998. "Differences in Metropolitan and Nonmetropolitan U.S. Family Income Inequality: A Cross-County Comparison," Journal of Urban Economics, Elsevier, vol. 44(2), pages 272-290, September.
    19. repec:zbw:rwirep:0262 is not listed on IDEAS
    20. Pasquale Tridico, 2014. "Welfare models, inequality and economic performance during globalisation," Departmental Working Papers of Economics - University 'Roma Tre' 0191, Department of Economics - University Roma Tre.
    21. R. D. Plotnick & E. Smolensky & E. Evenhouse & S. Reilly, "undated". "The Twentieth Century Record of Inequality and Poverty in the United States," Institute for Research on Poverty Discussion Papers 1166-98, University of Wisconsin Institute for Research on Poverty.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ecdequ:v:27:y:2013:i:4:p:316-324. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.