Decomposition Of Change In Spatial Employment Concentration: An Information‐Theoretic Extension Of Shift‐Share Analysis

ABSTRACT This paper develops a Kullback‐based information‐theoretic framework for the extended shift‐share models of the Esteban‐Marquillas/Areelus variety It also outlines an interpretative structure for managing the findings in model applications. In so doing, the method frees shift‐share from some of the criticisms that have been leveled against it. and broadens and generalizes its applicability in economics, regional science, and geography.