Researcher ORCID Identifier

0000-0002-8277-7483

Graduation Year

2021

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Nicholas Kacher

Reader 2

Nayana Bose

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Terms of Use for work posted in Scholarship@Claremont.

Abstract

The urban-rural divide has attracted much interest from policy makers due to its widespread implications, with regional differences touching everything from how the gains of economic growth are distributed to presidential campaign strategy. However, no research to our knowledge has compared how rural and metro areas respond the ratio of small and/or young firms with employment growth over time. In our study, we rectify this knowledge gap by looking at data from the U.S. Census Bureau’s public-use Business Dynamics Statistics. We perform a regression analysis on panel data dating back to 1977, using t-1 and t-10 lagged employment growth as the dependent variable and the proportions of small and young firms by county as the independent variables. Our findings indicate that both metro and rural areas benefit from a high proportion of small and young firms.

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