Measuring the Impact of Meat Packing and Processing Facilities in Nonmetropolitan Counties: A Difference-in-Differences Approach

Posted: 23 Jul 2007

See all articles by Georgeanne M. Artz

Georgeanne M. Artz

Iowa State University - Department of Economics

Peter F. Orazem

Iowa State University and IZA; IZA Institute of Labor Economics

Daniel M. Otto

Iowa State University - Department of Economics

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Abstract

Considerable controversy exists regarding the costs and benefits of growth in the meat packing and processing industry for rural counties. This study investigates the effects of this industry on social and economic outcomes in nonmetropolitan counties of 23 Midwestern and Southern states from 1990 to 2000. Results suggest that as the meat packing industry's share of a county's total employment and wage bill rises, total employment growth increases. However, employment growth in other sectors slows, as does local wage growth. Industry growth has little impact on local crime rates or on growth of government spending on education, health, or police protection.

Suggested Citation

Artz, Georgeanne M. and Orazem, Peter Francis and Otto, Daniel M. M., Measuring the Impact of Meat Packing and Processing Facilities in Nonmetropolitan Counties: A Difference-in-Differences Approach. American Journal of Agricultural Economics, Vol. 89, No. 3, pp. 557-570, August 2007, Available at SSRN: https://ssrn.com/abstract=1002115 or http://dx.doi.org/10.1111/j.1467-8276.2007.01003.x

Georgeanne M. Artz (Contact Author)

Iowa State University - Department of Economics ( email )

260 Heady Hall
Ames, IA 50011
United States

Peter Francis Orazem

Iowa State University and IZA ( email )

260 Heady Hall
Ames, IA 50011
United States
515-294-8656/515-294-7740 (Phone)
515-294-0221 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Daniel M. M. Otto

Iowa State University - Department of Economics ( email )

260 Heady Hall
Ames, IA 50011
United States

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