The Effects of Large-Scale Hog Production on Local Labor Markets

Abstract

Although the negative externalities of large-scale hog production have been well studied, econometric estimates of its potentially positive labor markets effects are lacking. We use the geographic shifts in large-scale hog production between 1992 and 2007 to estimate such production's effects on local farm and nonfarm labor markets. We find that every additional 1000 head at large-scale facilities in a county generates 0.57 additional large-scale hog operation jobs, 0.04 fewer small-scale hog operation jobs, 0.16 fewer nonhog-related agricultural jobs, and 0.59 additional nonfarm jobs, for a total of 0.96 jobs. Our total estimate is lower than previous ones based on input-output modeling.