Munich Personal RePEc Archive

Employment growth in Ceara: a shift-share analysis (2000-2005)

Gondim Nogueira, Cláudio André and Feitosa Lopes, Daniel Alisson (2008): Employment growth in Ceara: a shift-share analysis (2000-2005). Published in: IPECE Working Papers No. Working Paper Nº 49 : pp. 3-33.

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Abstract

Between 2000 and 2005, formal employment grew by 33.15% in Ceara (Brazil). Hence, the main objective of this paper was to analyze which municipalities and sectors contributed the most to such growth through a shift-share analysis of employment. The results indicate a considerable dispersion among municipalities in terms of job creation according to the composition of their productive structures and specific factors that yield them (or not) differential competitive advantages. More specifically, a regression indicated that this differential effect is positively correlated to the municipalities’ population density up to a point where agglomeration diseconomies actually reduce employment creation. Furthermore, municipalities with economic clusters tend to have a greater differential effect than others and this effect is smaller the further away they are located from Fortaleza, the State’s capital. Finally, considering the Fortaleza Metropolitan Area (FMA), the results show that employment grew at a slower pace in the capital if compared to almost all other neighbouring municipalities, which is due to strong agglomeration diseconomies in Fortaleza.

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