Assume that the nation and an urban area have the following employment figures in the base year.
Question:
Assume that the nation and an urban area have the following employment figures in the base year.
Industry A Industry B Industry C U.S. 1,000 2,000 500 Urban area 100 100 100 Assumenationalgrowth ratesofA (10%),B (5%),andC (30%),andassumelocal growth rates of A (5%), B (10%), and C (25%).
a. Use conventional shift-share analysis to compute, for each industry, the three components of growth; the part attributable to total employment growth in the nation, the part attributable to national growth in the industry as faster (or slower) than total national growth, and the competitive position of the local industry.
b. Use the M&M version of shift-share analysis to compute the four components of growth for each industry as shown in the text. Does the nature of the results change compared to conventional shift-share analysis?
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