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Productivity Change in Manufacturing Regions: A Multifactor/Shift‐Share Approach
Author(s) -
HAYNES KINGSLEY E.,
DINC MUSTAFA
Publication year - 1997
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/j.1468-2257.1997.tb00770.x
Subject(s) - productivity , multifactor productivity , economics , technical change , market share , wage share , shift share analysis , capital (architecture) , labour economics , total factor productivity , macroeconomics , efficiency wage , geography , archaeology , finance , wage
The traditional shift‐share model measures the combined effects of output growth and productivity change on employment. A region with above average employment growth either has a favorable industry mix or enjoys a competitive advantage over other regions. To separate the effects of output and productivity, the shift‐share model is extended to decompose the effects of changes in output and productivity on employment. This paper modifies the Rigby‐Anderson extension by separating the contribution of labor and capital to productivity growth in the analysis of regional economic performance, and investigates twenty (two‐digit SIC) manufacturing sectors in twelve states (six snowbelt, six sunbelt states) to assess whether observed changes in employment were due to changes in output or to productivity.