Sectoral Structure and Regional Wage Differentials: A Shift and Share Analysis on 40 Dutch Regions for 1973.

Measuring revealed localisation economies

“…This standard decomposition, however, represents only one of five possible alternatives (Oosterhaven and van Loon 1979). If the research purpose is to compare the same phenomenon over several different regions, then each component needs to be weighed or measured with the same (in the literature mostly national) reference weights or values.…”

Sector Structure and Cluster Economies: A Decomposition of Regional Labour Productivity

“…In a single-region analysis of a simple variable, such as regional employment growth in shift-and-share analysis, the difference with the national growth rate is mostly decomposed into a sector structure or industry mix component that measures whether fast growing industries are over-presented, and a regional component that measures the regionally weighted difference between regional and national industry growth rates. This standard decomposition, however, is only one of five possible alternatives (Oosterhaven & van Loon, 1979).…”

“…might well hide a positive sector structure component at a more detailed level of sector classification (see alsoOosterhaven & van Loon, 1979). The only sizeable negative localisation effect is found in the administrative capital of The Hague, where the over-represented (central) government…”