Regional Specialization, Equity, and other Social Measures

Transcription

1 Regional Specialization, Equity, and other Social Measures CRP 566

2 Several types of measures Location Quotients and the Herfindahl index Gini index and the Lorenz curve Robin Hood index Occupational Location Quotients Education Location Quotients

3 Location Quotients Jobs First step is to get data for your region and data for a larger region, usually the U.S. In our assignment we are going to use state level data compared to the nation. In the following example I am going to use state of Iowa data compared to the nation.

4 Rules LQ= Local percentage in industry i divided by the national percentage in industry i. If greater than 1.0 then specialized. If less than 1.0 then we are not self sufficient. Can use the formula 1 1/LQ i X jobs in i to estimate surpluses or deficits of jobs So for Iowa.

5 Iowa Jobs Data Description U.S 2013 IA 2013 Employment by place of work (number of jobs) Total employment 182,278,200 2,018,830 By type Farm employment 2,629,000 91,661 Forestry, fishing, and related activities 902,800 16,527 Forestry and logging 139, Fishing, hunting, and trapping 97, Agriculture and forestry support activities 665,900 15,485 Oil and gas extraction 822,000 2,348 Mining (except oil and gas) 305,000 2,775 Support activities for mining 480, Utilities 577,600 6,713 Construction of buildings 2,004,400 23,956 Heavy and civil engineering construction 1,061,400 12,200 Specialty trade contractors 6,201,600 72,665 Wood product manufacturing 408,900 8,812 Nonmetallic mineral product manufacturing 402,700 5,211 Primary metal manufacturing 408,800 8,403 Fabricated metal product manufacturing 1,487,200 20,992 Machinery manufacturing 1,156,300 42,140 Computer and electronic product manufacturing 1,085,300 12,492 Electrical equipment and appliance manufacturing 396,400 5,928 Motor vehicles, bodies and trailers, and parts manufacturing 829,600 14,337

6 Iowa LQs Description U.S 2013 IA 2013 Location Quotients Employment by place of work (number of jobs) Total employment 182,278,200 2,018,830 By type Farm employment 2,629,000 91, Forestry, fishing, and related activities 902,800 16, Forestry and logging 139, Fishing, hunting, and trapping 97, Agriculture and forestry support activities 665,900 15, Oil and gas extraction 822,000 2, Mining (except oil and gas) 305,000 2, Support activities for mining 480, Utilities 577,600 6, Construction of buildings 2,004,400 23, Heavy and civil engineering construction 1,061,400 12, Specialty trade contractors 6,201,600 72, Wood product manufacturing 408,900 8, Nonmetallic mineral product manufacturing 402,700 5, Primary metal manufacturing 408,800 8, Fabricated metal product manufacturing 1,487,200 20, Machinery manufacturing 1,156,300 42, Computer and electronic product manufacturing 1,085,300 12, Electrical equipment and appliance manufacturing 396,400 5, Motor vehicles, bodies and trailers, and parts manufacturing 829,600 14,

7 Iowa Surplus Job Categories (i.e., Specialization) Description U.S 2013 IA 2013 Location Quotients Export Producing Jobs Employment by place of work (number of jobs) Total employment 182,278,200 2,018,830 By type Farm employment 2,629,000 91, ,543 Forestry, fishing, and related activities 902,800 16, ,528 Forestry and logging 139, Fishing, hunting, and trapping 97, Agriculture and forestry support activities 665,900 15, ,110 Oil and gas extraction 822,000 2, Mining (except oil and gas) 305,000 2, Support activities for mining 480, Utilities 577,600 6, Construction of buildings 2,004,400 23, ,756 Heavy and civil engineering construction 1,061,400 12, Specialty trade contractors 6,201,600 72, ,979 Wood product manufacturing 408,900 8, ,283 Nonmetallic mineral product manufacturing 402,700 5, Primary metal manufacturing 408,800 8, ,875 Fabricated metal product manufacturing 1,487,200 20, ,520 Machinery manufacturing 1,156,300 42, ,333 Computer and electronic product manufacturing 1,085,300 12, Electrical equipment and appliance manufacturing 396,400 5, ,538 Motor vehicles, bodies and trailers, and parts manufacturing 829,600 14, ,149

8 Measures of Income Distribution Gini coefficient is a measure of income or resource equality where 0.0 equals perfect equality, And 1.0 equals perfect inequality We re not going to calculate this, but I m going to show it in a number of ways.

9 Lorenz Curve I n c o m e 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% 20% 40% 60% 80% 100% Households

10 Gini Formula The Gini coefficient can be thought of as the ratio of the area that lies between the line of equality and the Lorenz curve (marked A in the diagram) over the total area under the line of equality (marked A and B in the diagram); i.e., G = A / (A + B).

11 In the U.S GINI Coefficients for Families in the U.S.

12 Robin Hood Index Index of the proportion of money that must be transferred from the rich to the poor to achieve perfect income equality. Much easier to calculate than other coefficients Much easier to explain Makes sense to the average person

13 Robin Hood (or Hoover or Schultz) Index The sum of. The absolute value of the Percent of income in a household group Minus The percent of households in that group Divided by 2, or Robin Hood = %income i % HH i /2 So. 0.0 is complete equality, 1.0 is complete inequality

14 Dallas County Percent of All Income Share of Households Calculations Lowest Quintile 4.8% 20.0% Second Quintile 9.9% 20.0% Third Quintile 16.2% 20.0% Fourth Quintile 23.7% 20.0% Highest Quintile 45.4% 20.0% Robin Hood 0.291

15 Mississippi Percent of All Income Share of Households Calculations Lowest Quintile 3.2% 20.0% Second Quintile 8.3% 20.0% Third Quintile 14.6% 20.0% Fourth Quintile 23.5% 20.0% Highest Quintile 50.4% 20.0% Robin Hood 0.339

16 Using LQs for Occupations and Education The sense is the same where do we have more than would be expected or less than would be expected of some critical category. The interpretation is slightly different though. And it takes a little practice to get the data

17 Let s Go to American Fact Finder Click on Get Data under American Community Survey Then click on Subject Tables Then drill down to your geographic level Then choose the category (economic, social, etc).