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The Potential Bias in Producer Service Employment Estimates: The Case of the Canadian Space Economy

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  • C. Michael Wernerheim

    (Department of Economics, Memorial University of Newfoundland, StJohn's, Newfoundland, Canada, AIC 5S7, wern@mun.ca)

  • Christopher A. Sharpe

    (Department of Geography, Memorial University af Newfoundland, St John's, Newfoundland, Canada, AIC 5S7, casharpe@mun.ca)

Abstract

Footloose information technology producer services are increasingly viewed as the new engines of regional growth and employment creation. The claim is often that appropriate government policy can engineer comparative advantage in that direction by means of judicious subsidisation. The evaluation of such claims relies on accurate statistical data. We argue that attempts to distinguish in survey data or official statistics the subset of services commonly (but unofficially) known as producer services from consumer and government services may result in a potential 'bias' with implications for public policy. An input-output model is developed for estimating this bias by decomposing service industry data into its producer and consumer services content. This method can give a truer estimate of the actual employment in producer services at various spatial levels. We find a systematic bias in official data and a non-systematic bias in survey data. The model is applicable to countries and regions for which input-output data are available.

Suggested Citation

  • C. Michael Wernerheim & Christopher A. Sharpe, 2001. "The Potential Bias in Producer Service Employment Estimates: The Case of the Canadian Space Economy," Urban Studies, Urban Studies Journal Limited, vol. 38(3), pages 563-591, March.
    • Handle: RePEc:sae:urbstu:v:38:y:2001:i:3:p:563-591
    DOI: 10.1080/00420980123294
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    References listed on IDEAS

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    Cited by:

    1. C. Wernerheim & M. Waples, 2013. "Demand patterns and Canada’s trade in services," International Economics and Economic Policy, Springer, vol. 10(2), pages 159-181, June.

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