Journal Article

Rural Hospital Closures and Growth in Employment and Wages


Abstract: Since 2011, 74 hospitals have closed in rural counties isolated from larger towns. I evaluate the implications for employment and aggregate wage growth in these counties and find that hospital closures are associated with substantially lower annual growth in county employment and aggregate wages. Smaller counties with a greater share of hospital employment in total employment may see the most severe economic outcomes.

Keywords: Hospitals; Employment;

JEL Classification: J20; J21;

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Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Bulletin

Publication Date: 2019-07-16

Issue: July 16, 2019