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Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/116857
A nonparametric test for industrial specialization
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We introduce a nonparametric microdata based test for industrial specialization and apply it to a single urban area. Our test employs establishment densities for specific industries, a population counterfactual, and a new correction for múltiple hypothesis testing to determine the statistical significance of specialization across both places and industries. Results highlight patterns of specialization which are extremely varied, with downtown places specializing in a number of service sector industries, while more suburban places specialize in both manufacturing and service industries. Business service industries are subject to more specialization than non-business service industries while the manufacturing sector contains the lowest representation of industries with specialized places. Finally, we compare the results of our test for specialization with recent tests of localization and show how these two classes of measures highlight the presence of both industry as well as place specific agglomerative forces.
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BILLINGS, Stephen B. and JOHNSON, Erik B. A nonparametric test for industrial specialization. IEB Working Paper 2010/40. [consulted: 7 of October of 2026]. Available at: https://hdl.handle.net/2445/116857