the variable within industry between the two years and is defined as the sum of the three shift-share effects: national growth effect (), industry mix effect (), and local share effect (). The beginning and ending values of the economic variable within a particular industry are and , respectively. Each of the three effects is defined as a percentage of the beginning value of the economic variable. The total percent change in the economic variable nationwide for all industries combined is , while the national and regional industry-specific percent changes are and , respectively. These three equations substituted into the first equation yield the following expression (from where the decomposition starts), which simply says that the regional economic variable (for industry i) grows at the speed of the regional industry-specific percent change. Note that usually (in case of slow growth) 0 < gi < 1 and that refers to the whole period from to . Example As an example, a shift-share analysis might be utilized to examine changes in the construction industry of a state's economy over the past decade, using employment as the economic variable studied. Total national employment may have increased 5% over the decade, while national construction employment increased 8%. However, state construction employment decreased 2%, from 100,000 to 98,000 employees, for a net loss of 2,000 employees. The national growth effect is equal to the beginning 100,000 employees, times the total national growth rate of 5%, for an increase in 5,000 employees. The shift-share analysis implies that state construction would have increased by 5,000 employees, had it followed the same trend as the overall national economy. The industry mix effect is equal to the original 100,000 employees times the growth in the industry nationwide, which was 8%, minus the total national growth of 5%. This results in an increase in 3,000 employees (100,000 employees times 3%, which is the 8% industry growth minus the 5% total growth). The analysis implies that the state construction would have increased by another 3,000 employees had it followed the industry trends, because the construction industry nationwide performed better than the national economy overall. The local share effect in this example is equal to the beginning 100,000 employees times the state construction employment growth rate of −2% (it is negative because of the loss of employees), minus the national construction growth rate of 8%. This results in 100,000 employees times -10%,