Quality of life and spatial dimensions of the productivity slowdown

This research is concerned with explaning locational variations in the productivity slowdown within the urban manufacturing sector of the United States. The observed decline in labour productivity growth rates between the 1963–73 and 1973–82 subperiods is explained on the basis of both national and location-specific factors. An explict hypothesis examined here is that quality of life is an important area-specifc influence on productivity growth and related trends. Statistical analyses are conducted whereby either an aggregate amenity index or its individual amenity components are utilized to examine the importance of quality of life differentials. The results suggest that these amenities, particularly environmental quality, may be instrumental in explanining the differncial magnitude of the productivity slowdown across urban areas. Additional findings generally do not confirm the importance of other factors frequently cited as contributing to inter-area productivity differences. A regression diagnostic analysis was performed in order to test the sensitivity of the parameters of an appreciable influence on specific coefficients, out general conclusions regarding the impact of quality of life on productivity growth remain substantially unaltered.