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History Matters: Path dependence and innovation in British city ...

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Table 8: Shift share analysis<br />

Indicator<br />

Time series<br />

Data source<br />

Geographic basis<br />

Def<strong>in</strong>itions<br />

Shift share analysis, based on employment change <strong>in</strong> 2-digit sectors (1992 SIC).<br />

1974, 1981, 1991, 2005 (economic trough years).<br />

ONS: 1974 & 1981 Census of Employment; 1991 Annual Employment Survey; 2005 Annual<br />

Bus<strong>in</strong>ess Inquiry.<br />

Data for 1991 & 2005 is for 1998 TTWAs; data for 1974 & 1981 is for 1984 TTWAs.<br />

Shift share analysis is a technique used to identify the relative contributions of <strong>in</strong>dustry<br />

structure or mix versus other non-structural factors to overall employment change <strong>in</strong> a <strong>city</strong>region.<br />

The analysis identifies two pr<strong>in</strong>cipal measures:<br />

1) Structural shift – this measures the structural <strong>in</strong>fluence on employment change, <strong>and</strong><br />

reflects the mix of <strong>in</strong>dustries <strong>in</strong> the <strong>city</strong>-region.<br />

2) Differential shift (also referred to as the regional or competitive shift) – this measures the<br />

contribution to overall employment change due to each <strong>in</strong>dustry <strong>in</strong> the <strong>city</strong>-region grow<strong>in</strong>g at<br />

a faster or slower rate than its national growth rate. It removes structural effects, <strong>and</strong> allows<br />

exam<strong>in</strong>ation of a residual element which <strong>in</strong>cludes non-structural <strong>in</strong>fluences such as policy.<br />

The differential shift provides a measure of the effect of the <strong>city</strong>-region’s competitiveness on<br />

employment change.<br />

Comments<br />

There are some temporal <strong>and</strong> geographic discont<strong>in</strong>uities <strong>in</strong> the underly<strong>in</strong>g employment data<br />

series, due to changes <strong>in</strong> <strong>in</strong>dustrial classifications <strong>and</strong> TTWA def<strong>in</strong>itions. This means that it is<br />

not possible to carry out shift share analysis over the full 1974-2005 period; results for the<br />

shorter 1991-2005 period are not affected by these problems.<br />

Table 9: Population<br />

Indicator<br />

Time series<br />

Data source<br />

Geographic basis<br />

Def<strong>in</strong>itions<br />

Comments<br />

Resident population <strong>in</strong> <strong>city</strong>-region.<br />

1981 to 2006 (annual).<br />

ONS, mid-year population estimates.<br />

Data for local authority districts is best fit to 1998 TTWA boundaries.<br />

None.<br />

None.<br />

Table 10: Employment change<br />

Indicator<br />

Time series<br />

Data source<br />

Geographic basis<br />

Def<strong>in</strong>itions<br />

Comments<br />

Number of employees <strong>in</strong> employment.<br />

1981, 1991 & 2005 (economic trough years).<br />

ONS: 1981 Census of Employment; 1991 Annual Employment Survey; 2005 Annual Bus<strong>in</strong>ess<br />

Inquiry.<br />

Data for local authority districts is best-fit to 1998 TTWA boundaries (pre-1996 districts are<br />

used for 1981 data).<br />

None.<br />

Persons work<strong>in</strong>g on a self-employed basis are excluded from the figures.<br />

83

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