The unique data used in this study allow us to compare pay and productivity characteristics of individual plants across regions. We describe the characteristics of new entrants and examine what role, if any, new entrants had on industrial restructuring. We present evidence on the industry, pay, and productivity of plants in the Region at various points in time, and also compare characteristics of entrants in Appalachia to entrants in the rest of the country. Another important characteristic of a manufacturing plant is its ownership structure. Branch plants differ in many ways from single-unit plants.
Branch plants tend to pay higher wages and to be more productive than single-unit plants.
We examine the role of branch plants in Appalachia, how prevalent they are, and what type of job opportunities they provide. Branch plants have traditionally located in rural areas because of low labor costs and favorable business climates. Yet, with changes in trade and technology, businesses can now consider locations anywhere in the world. Rural America is no longer as favorable in terms of low wages and favorable business climate. This study examines whether branch plants continue to contribute significantly to the Appalachian manufacturing sector, both in terms of share of employment and the wage and productivity characteristics of the jobs.