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Uneven Development in North Carolina? Job Quality Differences Between Local and Nonlocal Firms1
Authors:Sara Curran  Donald Tomaskovic-Devey
Abstract:Abstract Do outside firms come to North Carolina or, more generally, to the rural South to take advantage of the low-wage unorganized local relations of production? Do they disrupt local labor market arrangements? We use data from a survey of North Carolina employees to examine labor market and job quality differences between local and outside firms and also the organization of regional labor markets. Results, based on multiple regression models, suggest that outside firms provide higher quality jobs, mediated by organizational resources and internal firm relations of production. Urban Piedmont labor markets provide better jobs than rural labor markets, regardless of the establishment's ownership locale. Generally, uneven development predictions are supported by additive models, but challenged by additional analyses of interactions. These analyses suggest that outside firms may be undermining local relations of production in rural North Carolina. Results of this research present rural policymakers with a challenge for future economic development strategies.
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