An Update on Rural Manufacturing: Rural Capital Expenditures Lagged Urban in 1992

Rural manufacturing employment was less severely affected by the 1990-91 recession and recovered more strongly than did urban employment. However, the gap between rural and urban manufacturing wages did not narrow and rural labor productivity growth lagged. In addition, capital expenditures per worker in rural areas declined relative to urban, possibly foreshadowing further widening of the differences between rural and urban labor productivity and wages