Employment growth in Ceara: a shift-share analysis (2000-2005)
AbstractBetween 2000 and 2005, formal employment grew by 33.15% in Ceara (Brazil). Hence, the main objective of this paper was to analyze which municipalities and sectors contributed the most to such growth through a shift-share analysis of employment. The results indicate a considerable dispersion among municipalities in terms of job creation according to the composition of their productive structures and specific factors that yield them (or not) differential competitive advantages. More specifically, a regression indicated that this differential effect is positively correlated to the municipalities’ population density up to a point where agglomeration diseconomies actually reduce employment creation. Furthermore, municipalities with economic clusters tend to have a greater differential effect than others and this effect is smaller the further away they are located from Fortaleza, the State’s capital. Finally, considering the Fortaleza Metropolitan Area (FMA), the results show that employment grew at a slower pace in the capital if compared to almost all other neighbouring municipalities, which is due to strong agglomeration diseconomies in Fortaleza.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 15882.
Date of creation: May 2008
Date of revision:
Employment; Shift-share; agglomeration diseconomies; clusters;
Find related papers by JEL classification:
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
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- Esteban, J., 2000. "Regional convergence in Europe and the industry mix: a shift-share analysis," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 30(3), pages 353-364, May.
- Valente J. Matlaba & Mark Holmes & Philip McCann & Jacques Poot, 2012. "Classic and Spatial Shift-Share Analysis of State-Level Employment Change in Brazil," Working Papers in Economics, University of Waikato, Department of Economics 12/08, University of Waikato, Department of Economics.
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