Labor Productivity and Wages in Rural and Urban Manufacturing Plants

Abstract
Plant-level data from the 1993 Survey of Manufacturing Technology matched with the Census of Manufactures are employed to explore rural-urban patterns of production worker wages and productivity. Rural-urban wage dif-ferentials diminish, but are still significant, when productivity, plant, and location characteristics are controlled for. Differences in the nonproduction worker share, schooling, and a compensating differential for housing costs appear to make important contributions to the rural-urban wage differential.

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