Income distributions,labour market sectors and the Goldschmidt hypothesis: the nonmetropolitan United States in 1970 and 1980

Local social structures are not simply their national counterparts writ small. There are autonomous, locality-specific influences which have a significant bearing on variations in socio-economic conditions. To show this. this paper concentrates on two measures of income distribution — family/household income inequality and poverty rates. Drawing on data from a one-in-six systematic sample of nonmetropolitan U.S. counties for 1970 and 1980, variations in these conditions are evaluated in the context of labour market segmentation and Goldschmidt's ideas on the socio-economic consequences of large-scale farms. The direct effects of these causal forces are shown to be influenced by the employment structures of local labour markets. The most important determinants of income distribution differences within labour market types are shown to be monopoly sector employment, competitive sector employment, large farm holdings, nonwhite population compositions and location within the southern United States.