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Superstar firms: How the shift from manufacturing to services affects local concentration of sales and jobs

A new article by LSE Blogs summarizes the findings from the Local and National Concentration Trends in Jobs and Sales: The Role of Structural Transformation paper by Blueprint Co-Director David Autor, Blueprint Affiliate John Van Reenen, and Christina Patterson. The authors use the Herfindahl-Hirschman Index to measure concentration. Their findings confirm that industrial concentration in the United States has significantly increased since the early 1980s, as shown in previous research. Additionally, their results present new evidence on local concentration, indicating that while local sales concentration rose between 1992 and 2017, the local employment concentration fell. Read the full article for more insights into the findings and their policy implications.

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