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The Shift-Share Regression: An Application to Regional Employment Development in Bavaria

In: Applied Regional Growth and Innovation Models

Author

Listed:
  • Uwe Blien

    (Institut fuer Arbeitsmarkt- und Berufsforschung (IAB))

  • Lutz Eigenhüller

    (Institut fuer Arbeitsmarkt- und Berufsforschung (IAB))

  • Markus Promberger

    (Institut fuer Arbeitsmarkt- und Berufsforschung (IAB))

  • Norbert Schanne

    (Institut fuer Arbeitsmarkt- und Berufsforschung (IAB))

Abstract

The so-called Shift-Share-Regression is used to analyse the development of employment. This does not imply a deterministic decomposition such as in classical Shift-Share-Analysis (Dunn 1960; Loveridge and Selting 1998). Instead, Shift-Share-Regression is a powerful and flexible econometric tool, which is especially suitable for testing theory-based hypotheses. In a basic version it was introduced by Patterson (1991) as a method for analysing and testing regional industrial developments. In contrary to the deterministic Shift-Share-Analysis employment development was examined in a linear model. In Patterson’s analysis the industrial sector structure was used as the sole determining factor alongside the location effects and the national trend, parallel to those of the deterministic analysis. Möller and Tassinopoulos (2000) extended Patterson’s approach by an additional variable for regional concentration. Further theory-based influences were then integrated in various IAB analyses (Blien and Wolf 2002). Some results of these studies are presented below, following an overview of the method.

Suggested Citation

  • Uwe Blien & Lutz Eigenhüller & Markus Promberger & Norbert Schanne, 2014. "The Shift-Share Regression: An Application to Regional Employment Development in Bavaria," Advances in Spatial Science, in: Karima Kourtit & Peter Nijkamp & Robert Stimson (ed.), Applied Regional Growth and Innovation Models, edition 127, chapter 0, pages 109-137, Springer.
    • Handle: RePEc:spr:adspcp:978-3-642-37819-5_6
    DOI: 10.1007/978-3-642-37819-5_6
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    Cited by:

    1. L. V. Melnikova, 2021. "Spatial Analysis of the Dynamics of Structural Shifts in the Economies of Russian Regions in 2004–2019," Regional Research of Russia, Springer, vol. 11(4), pages 454-463, October.
    2. Dogru, Tarik & Sirakaya-Turk, Ercan, 2017. "Engines of tourism's growth: An examination of efficacy of shift-share regression analysis in South Carolina," Tourism Management, Elsevier, vol. 58(C), pages 205-214.

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