This is a standard method of regional economic analysis that attempts to separate regional growth into its component causes, used in both industry and occupation contexts.
The main components are the-
- Mix Effect– which is regional growth that can be attributed to trends in the specific industry or occupation at a national level.
- National growth effect– which is growth that can be attributed to the overall growth of the entire national economy.
- Expected change -the rate of growth of the particular industry or occupation at the national level. Change above this level is credited to the region’s competitive effect.
- Competitive effect– which is growth that cannot be explained by either overall or industry/occupation-specific trends.
Shift share analysis provides a larger perspective on regional job growth, allowing researchers to measure the extent and source of job change in a region.