Is Educational Attainment a Significant Determinant of Where Firms Decide to Locate or Expand operations?
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Results indicate that educational attainment is a significant determinant of where firms in the transportation industry decide to locate or expand operations. However, educational attainment is not a significant determinant for the electronic equipment industry. Wage and unemployment levels are significant factors for both industries. With the exception of educational attainment and tax levels, the results do not vary across industries. Since industries such as transportation equipment seem to place a premium on states with a relatively high level of education attainment, states wishing to attract this type of companies may find it beneficial to encourage higher education, both for the well-being of its residents and for the economy of the state.
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