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Regional Data
Location Quotients
Regional Data
• We have hotels, do we have “a lot”?
– Raleigh has hotels too?
• Need context!
• 𝑳𝒐𝒄𝒂𝒕𝒊𝒐𝒏 𝑸𝒖𝒐𝒕𝒊𝒆𝒏𝒕 =
𝑳𝒐𝒄𝒂𝒍 𝑬𝒎𝒑 𝒊𝒏 𝑰𝒏𝒅
𝑻𝒐𝒕𝒂𝒍 𝑳𝒐𝒄𝒂𝒍 𝑬𝒎𝒑
𝑵𝒂𝒕𝒊𝒐𝒏𝒂𝒍 𝑬𝒎𝒑 𝒊𝒏 𝑰𝒏𝒅
𝑻𝒐𝒕𝒂𝒍 𝑵𝒂𝒕𝒊𝒐𝒏𝒂𝒍 𝑬𝒎𝒑
• LQ > 1  More than national average
• LQ < 1  Less than national average
LQs and Wage data
Industry (emp)
Avg
Annual
Wage
(NHC
2018)
Leis & Hosp (18027) 17836
Construction (7798) 50,791
Information (3159) 70,161
Trade, Trans, Util (22196) 37,275
Prof & Bus Serv (15235) 55,556
Finance (5449) 67,165
Educ & Health (13857) 45,729
Manufacturing (5104) 78,157
Nat Res. & Min. (152) 41,014
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
Industry Location Quotients
Wilmington Region
2010 2018
Cautions
• Is the LQ different from 1?
– Often difficult to tell
– Imprecise at local level
• Do not consider size of firms
– One large firm doesn’t indicate a
“cluster”
• Often too aggregated
– i.e. types of manufacturing
Diagram Here…
Identifying Important
Industries
(see notes from class)
LQs

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LQs

  • 2. Regional Data • We have hotels, do we have “a lot”? – Raleigh has hotels too? • Need context! • 𝑳𝒐𝒄𝒂𝒕𝒊𝒐𝒏 𝑸𝒖𝒐𝒕𝒊𝒆𝒏𝒕 = 𝑳𝒐𝒄𝒂𝒍 𝑬𝒎𝒑 𝒊𝒏 𝑰𝒏𝒅 𝑻𝒐𝒕𝒂𝒍 𝑳𝒐𝒄𝒂𝒍 𝑬𝒎𝒑 𝑵𝒂𝒕𝒊𝒐𝒏𝒂𝒍 𝑬𝒎𝒑 𝒊𝒏 𝑰𝒏𝒅 𝑻𝒐𝒕𝒂𝒍 𝑵𝒂𝒕𝒊𝒐𝒏𝒂𝒍 𝑬𝒎𝒑 • LQ > 1  More than national average • LQ < 1  Less than national average
  • 3. LQs and Wage data Industry (emp) Avg Annual Wage (NHC 2018) Leis & Hosp (18027) 17836 Construction (7798) 50,791 Information (3159) 70,161 Trade, Trans, Util (22196) 37,275 Prof & Bus Serv (15235) 55,556 Finance (5449) 67,165 Educ & Health (13857) 45,729 Manufacturing (5104) 78,157 Nat Res. & Min. (152) 41,014 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 Industry Location Quotients Wilmington Region 2010 2018
  • 4. Cautions • Is the LQ different from 1? – Often difficult to tell – Imprecise at local level • Do not consider size of firms – One large firm doesn’t indicate a “cluster” • Often too aggregated – i.e. types of manufacturing