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Local and National Concentration Trends in Jobs and Sales: The Role of Structural Transformation

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Local and National Concentration Trends in Jobs and Sales: The Role of Structural Transformation

Written by:
Working Paper Number CES-23-59

Abstract

CES_working_paper_series
Download Local and National Concentration Trends in Jobs and Sales: The Role of Structural Transformation [PDF - > 1MB]

National U.S. industrial concentration rose between 1992-2017. Simultaneously, the Herfindhahl Index of local (six-digit-NAICS by county) employment concentration fell. This divergence between national and local employment concentration is due to structural transformation. Both sales and employment concentration rose within industry-by-county cells. But activity shifted from concentrated Manufacturing towards relatively un-concentrated Services. A stronger between-sector shift in employment relative to sales explains the fall in local employment concentration. Had sectoral employment shares remained at their 1992 levels, average local employment concentration would have risen by 9% by 2017 rather than falling by 7%.

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Page Last Revised - November 17, 2023
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