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Linking Employment Location Quotients with Economic Performance for Counties in Florida

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  • Girman, John Todd

Abstract

Location Quotients (LQs) are widely used to assess industry concentration in specific regions relative to broader areas. However, their utility in predicting societal outcomes such as wealth, health, and education remains less explored. This study examines the links between selected industry location quotients and economic determinants of household income and poverty rate in Florida. Other factors, such as healthcare and education, were also considered to quantify the macroeconomic impact of these industries in Florida. Additionally, healthcare and education factors are considered to gauge the overall macroeconomic impact of these industries. Employing a Structural Equation Model with a three-stage least squares regression approach, our analysis unveils nuanced effects: while certain sectors bolster economic outcomes, others contribute to economic disparities. For instance, the construction and accommodation/food services sectors are found to influence local economies positively. Understanding these industry dynamics at the county level enables more informed local planning and long-term support strategies for communities.

Suggested Citation

  • Girman, John Todd, 2024. "Linking Employment Location Quotients with Economic Performance for Counties in Florida," SS-AAEA Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 2024(1).
    • Handle: RePEc:ags:ssaaea:370428
    DOI: 10.22004/ag.econ.370428
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