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How Specialized is “too” Specialized? Outmigration and Industry Diversification in Nonmetropolitan Counties across America

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  • Jackson, Ashley
  • Whitacre, Brian E.

Abstract

Outmigration and industrial composition have separately been the focal points of a significant amount of research related to nonmetropolitan counties; however, few (if any) studies have explicitly looked at the relationship between the two topics. The primary objective of this research is to identify what industry specialization level is “too” specialized with regards to outmigration – that is, to determine the level where specialization begins to have a damaging effect on population change. County-level data from a variety of sources is used to explore the impact of both earnings-based and employment-based definitions of specialization on net migration in nonmetropolitan counties from 2000 – 2009. Two distinct techniques (ordinary least squares and average treatment effects) are then used to assess both the impact and causality of being “too specialized.” The results suggest that a variety of specialization thresholds exist across various industries, including some surprising positive influences of industry composition on migration rates.

Suggested Citation

  • Jackson, Ashley & Whitacre, Brian E., 2012. "How Specialized is “too” Specialized? Outmigration and Industry Diversification in Nonmetropolitan Counties across America," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119739, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea12:119739
    DOI: 10.22004/ag.econ.119739
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    References listed on IDEAS

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    1. Diamond, Charles A & Simon, Curtis J, 1990. "Industrial Specialization and the Returns to Labor," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 175-201, April.
    2. Smith, Stephen M. & Gibson, Cosette M., 1988. "Industrial Diversification In Nonmetropolitan Counties And Its Effect On Economic Stability," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(2), pages 1-9, December.
    3. repec:rre:publsh:v:40:y:2010:i:1:p:5-26 is not listed on IDEAS
    4. Kenneth Johnson & Paul Voss & Roger Hammer & Glenn Fuguitt & Scott Mcniven, 2005. "Temporal and spatial variation in age-specific net migration in the United States," Demography, Springer;Population Association of America (PAA), vol. 42(4), pages 791-812, November.
    5. Richard Bilsborrow & Thomas McDevitt & Sherrie Kossoudji & Richard Fuller, 1987. "The impact of origin community characteristics on rural-urban out-migration in a developing country," Demography, Springer;Population Association of America (PAA), vol. 24(2), pages 191-210, May.
    6. Attaran, Mohsen, 1986. "Industrial Diversity and Economic Performance in U.S. Areas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 20(2), pages 44-54, July.
    7. Edward Nissan & George Carter, 2006. "The measurement of employment diversity for states and regions," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 30(2), pages 186-197, June.
    8. McGranahan, David A. & Cromartie, John & Wojan, Timothy R., 2011. "The Two Faces of Rural Population Loss Through Outmigration," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-8.
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    More about this item

    Keywords

    Community/Rural/Urban Development;

    JEL classification:

    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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