How do you interpret shift share analysis?
How do you interpret shift share analysis?
Shift share shows you the national growth (in terms of jobs) of a particular industry. Based on this national growth, it then calculates how much the industry is likely to grow in your region, and compares this estimation with how much the industry actually grew.
What is shift share analysis used for?
A shift-share analysis, used in regional science, political economy, and urban studies, determines what portions of regional economic growth or decline can be attributed to national, economic industry, and regional factors.
What are shift share instruments?
(2013; hereafter ADH) shift-share instrument, which combines industry- specific changes in Chinese import competition (the shocks) with local exposure given by the lagged industrial composition of U.S. regions (the exposure shares).
What does industry mix mean?
“Industry mix” refers to the region’s relative concentration of businesses within the sectors, and the changes expected to occur across various industry sectors as a result of different investment strategies.
How do you calculate industry mix effect?
Industrial mix effect is calculated by applying the job growth of the industry at the national level to the same industry at the regional level. We start by subtracting the national growth rate of the overall economy from the national growth rate of the specific industry.
What is Bartik instrument?
The Bartik instrument is the inner product of the industry-location shares and the industry component of the growth rates; formally, Bl = ∑k zlkgk. We first show that using the Bartik instrument is equivalent to using local industry. 1The intellectual history of the Bartik instrument is complicated.
What is location quotient mean?
Location quotients are ratios that allow an area’s distribution of employment by industry, ownership, and size class to be compared to a reference area’s distribution. An LQ greater than 1 indicates an industry with a greater share of the local area employment than is the case nationwide.
What is mix shift?
A change in a mix over time is known as “mix shift.” For example, a product’s daily active users (DAU) might be 75 percent from the United States and 25 percent from the rest of the world (ROW) at time t1, but 60 percent U.S. and 40 percent ROW at time t2.
What is a good location quotient?
A Location Quotient less than one indicates that the regional employment in a particular industry is lower than the national average. A Location Quotient greater than one indicates that the regional market has a higher concentration of employment in a particular industry compared to the national average.
