an article by Ludwig von Auer and Andranik Stepanyan (Universität Trier, Germany) and Mark Trede (Universität Münster, Germany) published in Journal of the Royal Statistical Society: Statistics in Society Series A Volume 182 Issue 3 (June 2019)
Summary
Existing measures of relative concentration rank industries according to their degree of concentration. However, two equally strongly concentrated industries can have completely different types of concentration.
Therefore, the paper proposes a new statistical approach that classifies each industry into one of six different geographical patterns, five of which represent different types of concentration, ranging from urban concentration to strongly rural concentration.
The statistical identification of each industry's geographical pattern is based on two Goodman–Kruskal rank correlation coefficients. The power of this new approach is illustrated by using German employment data on 613 different industries in 412 regions.
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