Shiftshare Analysis

• This is a relatively simple technique for analyzing changes in the structure of a local economy in relation to a larger reference economy

• It requires data (employment / output by sector) for two points in time for both the local and reference economies

• Shiftshare analysis decomposes changes in local economic performance into three components:

1. The economic growth component

2. The proportional shift component

3. The differential shift component

Previous slide

Next slide

Back to first slide

View graphic version