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Local and national concentration trends in jobs and sales: the role of structural transformation

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  • David Autor
  • Christina Patterson
  • John Van Reenen

Abstract

National U.S. industrial concentration rose between 1992-2017. Simultaneously, the Herfindhahl Index of local (six-digit-NAICS by county) employment concentration fell. This divergence between national and local employment concentration is due to structural transformation. Both sales and employment concentration rose within industry-by-county cells. But activity shifted from concentrated Manufacturing towards relatively un-concentrated Services. A stronger between-sector shift in employment relative to sales explains the fall in local employment concentration. Had sectoral employment shares remained at their 1992 levels, average local employment concentration would have risen by 9% by 2017 rather than falling by 7%.

Suggested Citation

  • David Autor & Christina Patterson & John Van Reenen, 2023. "Local and national concentration trends in jobs and sales: the role of structural transformation," CEP Discussion Papers dp1916, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1916
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    References listed on IDEAS

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    More about this item

    Keywords

    national and local employment concentration; local geographic concentration; sales; U.S.;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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