Identification of employment concentration and specialization areas : theory and application

Abstract

This paper presents a new method to identify 'Employment Concentration & Specialization areas' for a particular industry, by simultaneously analyzing absolute and relative employment concentration. This allows for analyzing the performance of these areas in relation to different characteristics such as infrastructure availability and the housing and labor market. This is relevant for scientists, corporate decision makers and local governments, as it can support investment decisions related to new plants or infrastructure. The method is developed and applied to five industries in a Dutch province subdivided in 502 areas. Keywords: Employment concentration, Geographical analysis, Location patterns, Agglomeration economies. JEL classification: R12, R30, J21

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