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A Productivity Growth Interpretation of the Labour Demand Shift-Share Model

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  • Daniel J. Graham Shaw
  • Nigel Spence

Abstract

GRAHAM D. J. and SPENCE N. (1998) A productivity growth interpretation of the labour demand shift-share model, Reg. Studies 32, 515-525. This paper proposes modifications to the labour demand shift-share model set out in this journal by CASLER, 1989, to allow for its implementation and to extend its use to analyses of regional labour productivity growth. The paper begins by briefly outlining the theoretical basis for the shift-share method provided in Casler's paper, and then goes on to present a specific reformulation of the model which incorporates input price and technological growth effects on labour demand. These additional effects are defined as productivity components within the shift-share model, and the empirical and theoretical implications of the modifications made are discussed in the paper. An empirical example of the results obtained through the modified labour demand shift-share model is then provided for selected British regions. The paper concludes by outlining potential uses of the modified model for regional analyses of labour productivity

Suggested Citation

  • Daniel J. Graham Shaw & Nigel Spence, 1998. "A Productivity Growth Interpretation of the Labour Demand Shift-Share Model," Regional Studies, Taylor & Francis Journals, vol. 32(6), pages 515-525, August.
    • Handle: RePEc:taf:regstd:v:32:y:1998:i:6:p:515-525
    DOI: 10.1080/00343409850119085
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    References listed on IDEAS

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    1. Fogarty, Michael S. & Garofalo, Gasper A., 1988. "Urban spatial structure and productivity growth in the manufacturing sector of cities," Journal of Urban Economics, Elsevier, vol. 23(1), pages 60-70, January.
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    3. Henderson, J. Vernon, 1986. "Efficiency of resource usage and city size," Journal of Urban Economics, Elsevier, vol. 19(1), pages 47-70, January.
    4. Andrikopoulos, Andreas A., 1980. "A synthesis of the production function and the shift-share model : A new regional modelling approach," Regional Science and Urban Economics, Elsevier, vol. 10(4), pages 539-560, November.
    5. D R Holden & J K Swales & A G M Nairn, 1987. "The Repeated Application of Shift-Share: A Structural Explanation of Regional Growth?," Environment and Planning A, , vol. 19(9), pages 1233-1250, September.
    6. D C Knudsen & R Barff, 1991. "Shift-Share Analysis as a Linear Model," Environment and Planning A, , vol. 23(3), pages 421-431, March.
    7. Beeson, Patricia E., 1990. "Sources of the decline of manufacturing in large metropolitan areas," Journal of Urban Economics, Elsevier, vol. 28(1), pages 71-86, July.
    8. Kingsley E. Haynes & Zachary B. Machunda, 1988. "Decomposition Of Change In Spatial Employment Concentration: An Information‐Theoretic Extension Of Shift‐Share Analysis," Papers in Regional Science, Wiley Blackwell, vol. 65(1), pages 101-113, January.
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    Cited by:

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