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A New Shift-Share Method

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  • Lionel Artige
  • Leif Neuss

Abstract

Shift-share analysis is a decomposition technique widely used in regional studies to quantify an industry-mix effect and a competitive effect on the growth of regional employment (or any other relevant variable) relative to the national average. This technique has always been subject to criticism for its lack of theoretical basis. This paper presents a critical assessment of the methods suggested by Dunn and Esteban-Marquillas and proposes a new shift-share method, which separates out the two effects unambiguously. By way of illustration, we provide an application to manufacturing employment in the Belgian provinces between 1995 and 2007.

Suggested Citation

  • Lionel Artige & Leif Neuss, 2014. "A New Shift-Share Method," Growth and Change, Wiley Blackwell, vol. 45(4), pages 667-683, December.
    • Handle: RePEc:bla:growch:v:45:y:2014:i:4:p:667-683
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    File URL: http://hdl.handle.net/10.1111/grow.12065
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    References listed on IDEAS

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    1. Ray M., 1990. "Standardising employment growth rates of foreign multinationals and domestic firms in Canada: from shift-share to multifactor partitioning," ILO Working Papers 992895733402676, International Labour Organization.
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    7. Esteban-Marquillas, J. M., 1972. "I. A reinterpretation of shift-share analysis," Regional and Urban Economics, Elsevier, vol. 2(3), pages 249-255, October.
    8. Bartels, Cornelis P. A. & Nicol, William R. & van Duijn, Jacob J., 1982. "Estimating the impact of regional policy : A review of applied research methods," Regional Science and Urban Economics, Elsevier, vol. 12(1), pages 3-41, February.
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    10. Cunningham, N J, 1969. "A Note on the 'Proper Distribution of Industry.'," Oxford Economic Papers, Oxford University Press, vol. 21(1), pages 122-127, March.
    11. Buck, T W & Atkins, M H, 1976. "The Impact of British Regional Policies on Employment Growth," Oxford Economic Papers, Oxford University Press, vol. 28(1), pages 118-132, March.
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    Cited by:

    1. Francesca Silvia Rota & Marco Bagliani & Paolo Feletig, 2020. "Breaking the Black-Box of Regional Resilience: A Taxonomy Using a Dynamic Cumulative Shift-Share Occupational Approach," Sustainability, MDPI, vol. 12(21), pages 1-27, October.
    2. Lichun Mo & Jiancheng Chen & Yi Xie, 2021. "Ecological Approach for the Evaluation of Structure and Sustainability in the Tourism Industry," Sustainability, MDPI, vol. 13(23), pages 1-13, December.
    3. Ruxu Sheng & Juntian Du & Songqi Liu & Changan Wang & Zidi Wang & Xiaoqian Liu, 2021. "Solar Photovoltaic Investment Changes across China Regions Using a Spatial Shift-Share Analysis," Energies, MDPI, vol. 14(19), pages 1-14, October.
    4. Escaith, Hubert, 2021. "Revisiting constant market share analysis: An exercise applied to NAFTA," Estudios y Perspectivas – Sede Subregional de la CEPAL en México 47123, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. Raisa Țăruș & Ștefan Dezsi & Andreea M. Crăciun & Florin Pop & Claudia E. Tudorache, 2022. "Urban Shrinking Cities in Romania and The Netherlands—A Possible Policy Framing," Sustainability, MDPI, vol. 14(10), pages 1-23, May.
    6. Qiang Li & Jason F. Kovacs & Geun Hee Choi, 2021. "High-technology employment growth in China: geographic disparities in economic structure and sectoral performance," Economic Change and Restructuring, Springer, vol. 54(4), pages 1025-1064, November.
    7. Jian Luo & Yongchun Yang, 2023. "Rediscovering the Shift-Share EM2 Model: A Decomposition Framework of Unbalanced Employment Growth at the Industrial Level," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    8. Yuliya Kuznetsova & João Paulo Cerdeira Bento, 2018. "Workplace Adaptations Promoting the Inclusion of Persons with Disabilities in Mainstream Employment: A Case-Study on Employers’ Responses in Norway," Social Inclusion, Cogitatio Press, vol. 6(2), pages 34-45.
    9. Ruxu Sheng & Rong Zhou & Ying Zhang & Zidi Wang, 2021. "Green Investment Changes in China: A Shift-Share Analysis," IJERPH, MDPI, vol. 18(12), pages 1-15, June.
    10. Larysa Yakymova, 2020. "General Patterns and Drivers of Changes in Employment Structure: Evidence from Five European Countries," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 67(3), pages 333-362, September.

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