Sprouting Cities: How Rural America Industrialized / Fabian Eckert, John Juneau, Michael Peters.

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Eckert, Fabian

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TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w30874.Publication details: Cambridge, Mass. National Bureau of Economic Research 2023.Description: 1 online resource: illustrations (black and white)Subject(s):

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Abstract: We study the joint process of urbanization and industrialization in the US economy between 1880 and 1940. We show that only a small share of aggregate industrialization is accounted for by the relocation of workers from remote rural areas to industrial hubs like Chicago or New York City. Instead, most sectoral shifts occurred within rural counties, dramatically transforming their sectoral structure. Most industrialization within counties occurred through the emergence of new "factory" cities with notably higher manufacturing shares rather than the expansion of incumbent cities. In contrast, today's shift towards services seems to benefit large incumbent cities the most.

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Previous	nber w30871 Local Labor Market Impacts of the Energy Transition: Prospects and Policies /	nber w30872 Do Technology Standards Induce Innovation in Environmental Technologies When Coordination is Important? /	nber w30873 Rationalizable Learning /	nber w30874 Sprouting Cities: How Rural America Industrialized /	nber w30875 The Economics of Cities: From Theory to Data /	nber w30876 Investing in Influence: Investors, Portfolio Firms, and Political Giving /	nber w30877 More Roads or Public Transit? Insights from Measuring City-Center Accessibility /	Next

January 2023.

We study the joint process of urbanization and industrialization in the US economy between 1880 and 1940. We show that only a small share of aggregate industrialization is accounted for by the relocation of workers from remote rural areas to industrial hubs like Chicago or New York City. Instead, most sectoral shifts occurred within rural counties, dramatically transforming their sectoral structure. Most industrialization within counties occurred through the emergence of new "factory" cities with notably higher manufacturing shares rather than the expansion of incumbent cities. In contrast, today's shift towards services seems to benefit large incumbent cities the most.