Migration and Rural Entrepreneurship

This paper investigates entrepreneurship of migrants and their location choice in attempt to draw connections between migration and economic development, especially the role of business formation in rural development. Rural entrepreneurship is firstly attempted to be better understood form perspectives of individual people’s migration, human capital, social capital and family background. The study uses a recent survey on alumni of Iowa State University. We find that social capital and social networks established in one’s home region are shown to be a strong factor in location choice of entrepreneurs. Entrepreneurs from rural origins tend to choose to start their businesses in rural areas in general and half of entrepreneurs migrate back to their home in particular to take local comparative advantages. Rural entrepreneurs are also more likely to obtain financial support from family members, friends and local banks to start a business.

Business Ownership by Workers: Are Worker Cooperatives a Viable Option?

One possible strategy for both succession and new business development is employee ownership.� New business formation as an employee-owned firm or cooperative may have some advantages over formation as a sole proprietorship or partnership: pooling financial resources, spreading risk and combining the various knowledge and skills of the members involved. In the case of business succession, selling to employees provides a tax benefit to the owners and increases the probability that the business will continue to exist in its current location, benefitting both the employees themselves and the local community. While worker cooperatives (or employee-owned cooperatives) are currently rare in the United States, successful examples exist, suggesting potential for future development of this type of organization. This paper reviews the literature on worker cooperatives and presents data on the extent and nature of worker cooperatives in the United States. It concludes with a discussion of the implications for employee-owned cooperative development in Iowa and provides suggestions for future research and outreach programming on this topic.

Reexamining Rural Decline: How Changing Rural Classifications Affect Perceived Growth

This article illustrates the commonly overlooked sample selection problem inherent in using rural classification methods that change over time due to population changes. Since fast growing rural areas grow out of their rural status, using recent rural definitions excludes the most successful places from the analysis. Average economic performance of the areas remaining rural significantly understates true rural performance. We illustrate this problem using one rural classification system, rural-urban continuum codes. Choice of code vintage alters conclusions regarding the relative speed of rural and urban growth and can mislead researchers regarding magnitudes and signs of factors believed to influence growth.

THE IMPACT OF "BIG-BOX" BUILDING MATERIALS STORES ON HOST TOWNS AND SURROUNDING COUNTIES IN A MIDWESTERN STATE

This paper analyzes 11 regions in a midwestern state where big-box building materials stores have opened. The zero-sum-game theory is verified; the sales gains in the host counties equaled the losses in the surrounding counties. The results are important to existing merchants and local officials in setting strategies and policies.Community/Rural/Urban Development,

AN ANALYSIS OF THE TRANSFER OF FUNDS FROM WEAK RETAIL COUNTIES TO STRONG RETAIL COUNTIES IN IOWA VIA LOCAL OPTION SALES TAXES

This study analyzes the transfer of tax dollars from "retail poor" to "retail rich" counties via local option sales taxes in Iowa. These taxes may potentially transfer more than one billion dollars from rural to urban counties over the next ten years. The implications for economic development policy are discussed.Public Economics,

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

We measure how local growth in meatpacking and processing affects growth in local economies, government expenditures, and crime rates from 1990-2000 in nonmetropolitan counties of 12 Midwestern States. Propensity score matching is used as a check on possible non-random placement of meatpacking and processing plants. Results suggest that as the meat packing industryï¾’s share of a countyï¾’s total employment and wage bill rises, total employment growth increases. However, employment growth in other sectors slows, as does local wage growth. There is some evidence that slower wage growth swamps the employment growth so that aggregate income grows more slowly. We find no evidence that growth in the industry changes the growth rates for crime or government spending.

Is It a Jungle Out There?: Meat Packing, Immigrants and Rural Communities

�Over the past 45 years, meatpacking has shifted from a predominantly urban to a predominantly�rural industry. Meatpacking plants can represent a significant share of a rural community’s�employment. As a traditional employer of immigrants, these plants can also alter significantly�the demographic composition of a rural community. These changes have led to numerous�controversies regarding whether these plants impose social or economic costs on their host�communities. This study uses comments culled from various media to identify the most�prominent controversies, including whether meatpacking presence leads to local language�problems, social service expenses, special needs schooling or displacement of native-born�citizens. These controversies can be recast as hypotheses that can be subjected to empirical tests.�We show that the meat processing industry has had large impacts on the demographic�composition of rural communities and their schools including increases in populations requiring�specialized services. However, there is no evidence that the industry increases per capita�government expenditures suggesting that rural communities trade off the economic benefits of�having these large employers against the costs of accommodating the needs of the new residents. ��Welfare; Rural; meatpacking; immigration; ESL; public expense; social cost

Meat Packing and Processing Facilities in the Non-Metropolitan Midwest: Blessing or Curse?

Growth in the meat packing and processing industry in the Midwestern United States has generated a significant amount of debate regarding the costs and benefits of this type of economic development. This research employs 1990-2000 proprietary data from the Bureau of Labor Statistics' Longitudinal Database (LDB) to investigate the effects of this industry on social and economic outcomes in non-metropolitan counties of twelve Midwestern states. The empirical specification uses a difference-in-differences specification to measure the effect of industry growth on local economic growth, government expenditures, and crime. Propensity score matching is used as a check on possible non-random placement of meat packing and processing plants. Results suggest that as the meat packing industry's share of a country's total employment and wage bill rises, total employment growth increases. However, employment growth in other sectors slows, as does local wage growth. There is some evidence that slower wage growth swamps the employment growth so that aggregate income grows more slowly. We find no evidence that growth in the industry changes the growth rates for crime or government spending.Community/Rural/Urban Development,

Off-Farm Employment Effects on Adoption of Nutrient Management Practices

Off-farm income as a share of total farm household income has been increasing. Previous studies found inconsistent results regarding the impact of off-farm income on adoption of conservation practices. We test the hypothesis that off-farm employment has a positive impact on adoption of capital incentive practices and a negative impact on adoption of labor-intensive practices. The results confirm that adoption of injecting manure into the soil, a capital intensive practice, is positively and significantly impacted by off-farm employment of the operator. However, off-farm employment variables had no effect on adoption of record keeping.adoption, nutrient management, off-farm income, Environmental Economics and Policy, Livestock Production/Industries,

Is It a Jungle Out There? Meat Packing, Immigrants, and Rural Communities

The shift of the U.S. meat packing industry from urban to rural areas has generated controversy regarding potential social and economic costs of meat packing plants on their host communities. This study uses media comments to identify the most prominent controversies regarding meat packing, its largely immigrant workforce, and rural communities. We find that the industry has impacted the demographic composition of rural communities and their schools, but find no evidence that the industry increases per capita government expenditures. Our results suggest rural communities trade off the economic benefits of hosting these large employers against the costs of accommodating needs of new residents.immigration, meat packing, rural communities, Community/Rural/Urban Development, Livestock Production/Industries,