The aims of this paper are twofold: first, to gain a fuller understanding of factors that foster community cohesion and contribute to the residents' social and economic well-being; and, second, to move beyond previous research that used larger spatial units such as states, counties, or aggregates of counties and to focus instead on American small towns (population 2,500-20,000). The data on small towns are drawn from public-use files and from confidential microdata from various economic censuses. From these sources we construct measures of locally oriented firms, self-employment, business establishments that serve as gathering places, and associations. The local capitalism and civic engagement variables generally perform as hypothesized; in some cases they are related quite strongly to civic welfare outcomes such as income levels, poverty rates, and nonmigration rates. We discuss the advantages and disadvantages of working with place-level data and suggest some strategies for subsequent work on small towns and other incorporated places.
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Local Manufacturing Establishments and the Earnings of Manufacturing Workers: Insights from Matched Employer-Employee Data
January 2011
Working Paper Number:
CES-11-01
We analyze the earnings determination process of more than 400,000 rural manufacturing workers in 12 selected U.S. states. Our theoretical motivation stems from an ongoing interest in the benefits of locally oriented business establishments. In this case, we distinguish manufacturing concerns that are single establishments in one rural place from branch plants that are part of larger multi-establishment enterprises. Our data permit us to introduce attributes of both workers and their employing firms into earnings determination models. For manufacturing workers in 'micropolitan' rural counties, we find that working for a local (single) establishment has a positive impact on annual earnings. However, tenure with a firm returns more earnings for workers in non-local manufacturing facilities. Conversely, for manufacturing workers in 'noncore' or rural areas without urban cores, we find that working for a local establishment has a negative effect on earnings. But, job tenure pays off more when working for a local establishment.
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Leaving Home: Modeling the Effect of Civic and Economic Structure on Individual Migration Patterns
June 2002
Working Paper Number:
CES-02-16
This research analyzes the effect of community structure upon individuals' probabilities of moving between 1985 and 1990. Using the full Census sample long form microdata for 1990, we re-allocate adult persons in 1990 to their 1985 county of residence. Then, using origin county macro-structural variables (derived from the Economic Census microdata) and individual characteristics (from Decennial Census microdata), we develop a two level hierarchical linear model. In level 1, we construct a logistic equation modeling individual probabilities of moving. In level 2, we model the contextual effects of origin community structure on these models. These contextual effects fall into two categories: 1) economic conditions that comprise the usual aggregate 'push' factors and 2) civic community factors that act to retain people in their community. Results specify the relationship between community context and individual migration patterns, and demonstrate effects of local economic structure and local civic structure on these individual probabilities. Most notably, we find that civic attributes of communities are associated with a propensity to stay in place, net of community economic factors and individual characteristics.
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In-migration and Dilution of Community Social Capital
June 2018
Working Paper Number:
CES-18-32
Consistent with predictions from the literature, we find that higher levels of in-migration dilute multiple dimensions of a community's level of social capital. The analysis employs a 2SLS
methodology to account for potential endogeneity of migration.
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Individual Social Capital and Migration
March 2018
Working Paper Number:
CES-18-14
This paper determines how individual, relative to community social capital affects individual migration decisions. We make use of non-public data from the Social Capital Community Benchmark Survey to predict multi-dimensional social capital for observations in the Current Population Survey. We find evidence that individuals are much less likely to have moved to a community with average social capital levels lower than their own and that higher levels of community social capital act as positive pull-factor amenities. The importance of that amenity differs across urban/rural locations. We also confirm that higher individual social capital is a negative predictor of migration.
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Reservation Nonemployer and Employer Establishments: Data from U.S. Census Longitudinal Business Databases
December 2018
Working Paper Number:
CES-18-50
The presence of businesses on American Indian reservations has been difficult to analyze due to limited data. Akee, Mykerezi, and Todd (AMT; 2017) geocoded confidential data from the U.S. Census Longitudinal Business Database to identify whether employer establishments were located on or off American Indian reservations and then compared federally recognized reservations and nearby county areas with respect to their per capita number of employers and jobs. We use their methods and the U.S. Census Integrated Longitudinal Business Database to develop parallel results for nonemployer establishments and for the combination of employer and nonemployer establishments. Similar to AMT's findings, we find that reservations and nearby county areas have a similar sectoral distribution of nonemployer and nonemployer-plus-employer establishments, but reservations have significantly fewer of them in nearly all sectors, especially when the area population is below 15,000. By contrast to AMT, the average size of reservation nonemployer establishments, as measured by revenue (instead of the jobs measure AMT used for employers), is smaller than the size of nonemployers in nearby county areas, and this is true in most industries as well. The most significant exception is in the retail sector. Geographic and demographic factors, such as population density and per capita income, statistically account for only a small portion of these differences. However, when we assume that nonemployer establishments create the equivalent of one job and use combined employer-plus-nonemployer jobs to measure establishment size, the employer job numbers dominate and we parallel AMT's finding that, due to large job counts in the Arts/Entertainment/Recreation and Public Administration sectors, reservations on average have slightly more jobs per resident than nearby county areas.
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Stability and Change in Individual Determinants of Migration: Evidence from 1985-1990 and 1995 to 2000
November 2006
Working Paper Number:
CES-06-27
In this paper, we compare the reliability of migration estimates from two rather different macroeconomic periods in recent U.S. history. One of these periods, 1985-1990 coincides with the culmination of a vast industrial restructuring which saw a significant decline in manufacturing employment. The other period, 1995-2000, encompasses a time of robust economic growth and tight labor markets driven by productivity gains associated with new technologies. Our interest here is in the stability of common individual-level predictors of migration in these rather disparate macroeconomic contexts. Using confidential internal versions of the 1990 and 2000 Census long-form data, we estimate logistic models of the likelihood that individuals will migrate. The geographic detail in the internal Census data permits us to measure migration in ways that are not possible with public-domain Census data on persons. We develop migration definitions that distinguish between local residential mobility likely associated with life course transitions from migration out of the labor market area that may be driven more by employment and other socioeconomic considerations. Using logistic modeling, we find that the same individual attributes predict migration reasonably well during both periods. We also compute some illustrative probabilities of migration that show temporal stability in migration predictors could be lessened by certain changes in population composition.
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Neighborhood Income and Material Hardship in the United States
January 2022
Working Paper Number:
CES-22-01
U.S. households face a number of economic challenges that affect their well-being. In this analysis we focus on the extent to which neighborhood economic conditions contribute to hardship. Specifically, using data from the 2008 and 2014 Survey of Income and Program Participation panel surveys and logistic regression, we analyze the extent to which neighborhoods income levels affect the likelihood of experiencing seven types of hardships, including trouble paying bills, medical need, food insecurity, housing hardship, ownership of basic consumer durables, neighborhood problems, and fear of crime. We find strong bivariate relationships between neighborhood income and all hardships, but for most hardships these are explained by other household characteristics, such as household income and education. However, neighborhood income retains a strong association with two hardships in particular even when controlling for a variety of other household characteristics: neighborhood conditions (such as the presence of trash and litter) and fear of crime. Our study highlights the importance of examining multiple measures when assessing well-being, and our findings are consistent with the notion that collective socialization and community-level structural features affect the likelihood that households experience deleterious neighborhood conditions and a fear of crime.
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How Does Geography Matter in Ethnic Labor Market Segmentation Process? A Case Study of Chinese Immigrants in the San Francisco CMSA
March 2007
Working Paper Number:
CES-07-09
In the context of continuing influxes of large numbers of immigrants to the United States, urban labor market segmentation along the lines of race/ethnicity, gender, and class has drawn considerable growing attention. Using a confidential dataset extracted from the United States Decennial Long Form Data 2000 and a multilevel regression modeling strategy, this paper presents a case study of Chinese immigrants in the San Francisco metropolitan area. Correspondent with the highly segregated nature of the labor market as between Chinese immigrant men and women, different socioeconomic characteristics at the census tract level are significantly related to their occupational segregation. This suggests the social process of labor market segmentation is contingent on the immigrant geography of residence and workplace. With different direction and magnitude of the spatial contingency between men and women in the labor market, residency in Chinese immigrant concentrated areas is perpetuating the gender occupational segregation by skill level. Whereas abundant ethnic resources may exist in ethnic neighborhoods and enclaves for certain types of employment opportunities, these resources do not necessarily help Chinese immigrant workers, especially women, to move upward along the labor market hierarchy.
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Brighter Prospects? Assessing the Franchise Advantage using Census Data
January 2017
Working Paper Number:
CES-17-21
This paper uses Census micro data to examine how starting a business as a franchise rather than an independent business affects its survival and growth prospects. We first consider the factors that influence the business owner's decision about being franchised, and then use different empirical approaches to correct for selection bias in our performance analyses. We find that franchised businesses on average benefit from higher survival rates and faster initial growth relative to independent businesses. However, the effects are not large and, conditional on first-year survival, the differences basically disappear. We briefly discuss potential mechanisms to explain these results. U.S. Census Bureau. All results have been reviewed to ensure that no confidential information is disclosed. Support for this research at the Michigan Census Research Data Center is gratefully acknowledged.
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Reservation Employer Establishments: Data from the U.S. Census Longitudinal Business Database
January 2017
Working Paper Number:
CES-17-57
The presence of employers and jobs on American Indian reservations has been difficult to analyze due to limited data. We are the first to geocode confidential data on employer establishments from the U.S. Census Longitudinal Business Database to identify location on or off American Indian reservations. We identify the per capita establishment count and jobs in reservation-based employer establishments for most federally recognized reservations. Comparisons to nearby non-reservation areas in the lower 48 states across 18 industries reveal that reservations have a similar sectoral distribution of employer establishments but have significantly fewer of them in nearly all sectors, especially when the area population is below 15,000 (as it is on the vast majority of reservations and for the majority of the reservation population). By contrast, the total number of jobs provided by reservation establishments is, on average, at par with or somewhat higher than in nearby county areas but is concentrated among casino-related and government employers. An implication is that average job numbers per establishment are higher in these sectors on reservations, including those with populations below 15,000, while the remaining industries are typically sparser within reservations (in firm count and jobs per capita). Geographic and demographic factors, such as population density and per capita income, statistically account for some but not all of these differences.
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