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

Shift-share employment analysis of cantons in the Federation of Bosnia and Herzegovina

“…where: ∆ei -employment change in cantons of sector i; 3 ei -employment level in canton of sector i at the beginning of the period; eki -employment level in canton of sector i at the end of the period; Nk -total employment in FBiH at the end of the period; N -total employment in FBiH at the beginning of the period; Nki -total employment in FBiH at the end of the period in sector i; Ni -total employment in FBiH at the end of the period in sector i. Some authors also use shift-share regression which is not based on deterministic decomposition such as standard shift-share analysis (Blien, et al, 2014). Those who tried both methods, comparing results from standard shift-share analysis and regression based one, observed that "… regression results are generally consistent with each other and with the findings from the traditional shift-share analysis…" (Brox, et al, 2010, p. 38).…”

“…Shift-share analysis can also be used for regional comparison between one particular region and a group of other regions (Sims, 2015), or between a region and a national economy as in the case of Malaysia (Hassan, et al, 2011). The location effect in analysis of German regions has been proved significant in regional development (Blien, et al, 2014).…”

“…Are regional economic structures strong enough or some stimulation from higher levels is needed in order to maintain employment levels in times of structural and technological change? It appears there is agreement among economic profession that several factors including elasticity of product demand and locational advantages and disadvantages of the different regions can play important roles in determining employment effects of structural and technological change (Blien, et al, 2014).…”

One economy, but different growth regimes: why Germany’s rural east is still lagging

“…The starting point is a shift-share regression as proposed by Patterson (1991). We follow the standard assumptions of modern shift-share regressions (Blien and Wolf, 2002;Blien et al, 2014;Patterson, 1991; for more details see Margarian and Hundt, 2019). We explain the development of employment (emp) in relative terms: y r; z;s;t ¼ emp r;z;s;t À emp r;z;s; tÀ1 emp r;z;s;tÀ1…”

“…The starting point is a shift-share regression as proposed by Patterson (1991). We follow the standard assumptions of modern shift-share regressions (Blien and Wolf, 2002; Blien et al , 2014; Patterson, 1991; for more details see Margarian and Hundt, 2019). We explain the development of employment ( emp ) in relative terms: where y r,z,s,t represents the relative employment development in region z in the industry s at time t differentiated by spatial location r (with r ϵ {urban West, rural West, urban East, rural East}).…”