Establishment Size by Sector and County-Level Economic Growth

Posted: 10 Nov 2009

Date Written: 2006


The relationship between the growth rates of medianhousehold income at the county level and the average size of firms in variousindustries is examined. A model of linkages between average establishment sizeand economic growth is presented and evaluated in light of data onmanufacturing, retail, wholesale, and service firms across 3,030 counties. Drawn from the U.S. Census Bureau's County and City Data Book (1988and 1994) and County Business Patterns, the data reveal negativeassociations between income growth rates and firm size in all four industries.In other words, household income grows more rapidly in counties with smallermanufacturing, retail, wholesale, and service establishments. (SAA)

Keywords: Household income, Income growth, Growth rates, U.S. Bureau of the Census, County Business Patterns dataset (Census Bureau), Manufacturing industries, Wholesale trade, Economic growth, Firm size, Counties, Regional analysis, Service industries, Retail industry

Suggested Citation

Shaffer, Sherrill, Establishment Size by Sector and County-Level Economic Growth (2006). Small Business Economics, Vol. 26, Issue 2, p. 145-154 2006. Available at SSRN:

Sherrill Shaffer (Contact Author)

University of Wyoming ( email )

P.O. Box 3985
Laramie, WY 82071-3985
United States
307-766-2173 (Phone)
307-766-5090 (Fax)

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