North American Industry Classification System Research Articles

Industry classification schemes: An analysis and review

ABSTRACTThis article examines the industry classification schemes used in business research from the Standard Industrial Classification system and the North American Industry Classification System to market-based industry classification schemes like the Global Industry Classification and the Industry Classification Benchmark. The examination answers why there are so many, who developed them, and for what purpose. An assortment of industry classification schemes is reviewed to highlight differentiating characteristics, how companies are assigned industry codes, their use by different user groups, and the coverage of industry codes in well-known business databases. The article also introduces the new Sustainability Industry Classification System from the Sustainable Accounting Standards Board designed to classify companies by sustainability metrics.

RegData: A numerical database on industry‐specific regulations for all United States industries and federal regulations, 1997–2012

AbstractWe introduce RegData, formerly known as the Industry‐specific Regulatory Constraint Database. RegData annually quantifies federal regulations by industry and regulatory agency for all federal regulations from 1997–2012. The quantification of regulations at the industry level for all industries is without precedent. RegData measures regulation for industries at the two, three, and four‐digit levels of the North American Industry Classification System. We created this database using text analysis to count binding constraints in the wording of regulations, as codified in the Code of Federal Regulations, and to measure the applicability of regulatory text to different industries. We validate our measures of regulation by examining known episodes of regulatory growth and deregulation, as well as by comparing our measures to an existing, cross‐sectional measure of regulation. Researchers can use this database to study the determinants of industry regulations and to study regulations’ effects on a massive array of dependent variables, both across industries and time.

A Short Note on the Application of Chow Test of Structural Break in US GDP

In 1997, the North American Industry Classification System (NAICS)--the standard for use by Federal statistical agencies in classifying business establishments for the collection, tabulation, presentation, and analysis of statistical data describing the US economy--replaced the Standard Industrial Classification (SIC) system. There are substantial differences in the method of data reporting under the SIC system and the under NAICS. In this short note, using a Chow Test, we formally provide evidence of a structural break in the US GDP data due to the switch from the SIC reporting system to the NAICS reporting system.

Regulating Away Competition: The Effect of Regulation on Entrepreneurship and Employment

Many scholars have worried that regulation deters entrepreneurship because larger firms can overcome the costs of complying with regulations more easily than smaller firms. Using novel data on the extent of US federal regulations by industry at the four-digit NAICS (North American Industry Classification System) level, the RegData database of the Mercatus Center at George Mason University, and data on firm births and employment from the Statistics of US Businesses, we run fixed effects regressions to show that more-regulated industries experienced fewer new firm births and slower employment growth in the period 1998 to 2011. Large firms may even successfully lobby government officials to increase regulations to raise their smaller rivals' costs. We also find that regulations inhibit employment growth in small firms more than in large firms.

Research Commentary—Information Technology Substitution Revisited

Taking advantage of the opportunities created by the price adjusted performance improvement in information technology (IT) depends in part on the ability of IT capital to substitute for other inputs in production. Studies in the information systems literature and most economics training examining the substitution of IT capital for other inputs use the Allen elasticity of substitution (AES). We present a less-well-known measure for the elasticity of substitution, the Morishima elasticity of substitution (MES). In contrast to the AES, which is misleading when there are three or more inputs—such as non-IT capital, labor, and IT capital—the MES provides a substitution measure where the scale is meaningful, and the measure differs depending on which price is changing. This is particularly important for IT capital, because prices have been declining, and there is evidence that IT capital can substitute for non-IT capital or labor in a qualitatively different way than non-IT capital and labor substitute for each other. Methodologically, we also show the impact of imposing local regularity—for example, monotonicity of output from increases in inputs—which we do through Bayesian methods employed to estimate the underlying functions that are used to calculate various measures of substitution. We demonstrate the importance of the MES as an underrecognized measure of substitution and the impact of imposing local regularity using an economy-wide industry-level data set covering 1998–2009 at the three-digit North American Industry Classification System code level. Our MES results show that reductions in the price of IT capital increase the quantity of IT capital in use, but are unlikely to change the input share of IT capital—the value of IT capital as a proportion of the value of all inputs—in contrast to major studies using the AES. In addition, estimates for both elasticities of substitution are more stable after imposing local regularity. Both of these advances—that is, the MES and imposing local regularity—have the potential to impact future work on IT productivity, IT pricing, IT cost estimation, and any type of analysis that posits the substitution of IT capital for non-IT capital or labor.

Economic impacts of the hotel industry: an input-output analysis

Purpose– The purpose of this paper is to be limited to provide an overall economic structure linked with a particular hospitality industry by identifying the economic structure of relations between the two hotel industries and other industries within a particular state in the USA.Design/methodology/approach– The analyses of output, labor income and employment multipliers from the input–output system were performed using the IMPLAN 3.0 software. The study attempted to compare the hotel/motel industry (industry code 411) and the accommodations industry (industry code 412) with the top ten industries and averages of each set of multipliers to estimate the relative importance and contribution of the two hotel industries to the economy of Texas. After this comparison, the aggregated input–output tables and multipliers were prepared to determine the economic inter-relationship between the two combined hotel industries (industry code 411 plus industry code 412) and the non-hotel industries, using the criteria of the NAICS (North American Industry Classification System).Findings– The three findings of this study are summarized as follows. First, the two hotel industries impacted the state economy due to a high induced effect from output and a considerable direct, indirect and induced effect from labor income and employment, despite their relatively lower multipliers and the economic downturn in the state. Second, the hotel-related industry had a strong inter-dependent relationship with the finance and insurance-related industries. Finally, while the hotel industry generated more labor income and employment than did the other accommodations industry, it is interesting that the other accommodations industry created more output than did the hotel industry.Research limitations/implications– Other than limitations pertaining to assumptions of input-output model, an input-output analysis alone cannot become the best analytical method for decision-making. The study was a cross-sectional study with 2009 data and did not incorporate a time-series flow of the state economic structure over several decades. A study of the inter-relationship among varied states bordering the state could be worthwhile to identify the flow of inputs and outputs.Originality/value– Despite a considerable number of research in measuring the economic impacts, this paper was of great significance, in that the economic impact of the hotel industry that has never been performed in a particular state of the USA was analyzed. Additionally, these quantified economic data and results should be helpful to future plans and policies associated with the hotel industry.

Políticas e industrias audiovisuales en México: apuntes y diagnóstico

Este artículo expone la pertinencia de estudiar a las industrias audiovisuales y a sus políticas públicas de forma integral. En primer lugar, se establece el procedimiento de construcción y el marco jurídico de las políticas públicas audiovisuales impulsadas en México durante los últimos veinte años. En segundo lugar, se presenta el estado actual de la industria audiovisual mexicana. En tercera instancia, se aportan indicadores industriales proporcionados por el Sistema de Clasificación Industrial de América del Norte (SCIAN) para observar la concentración audiovisual. Finalmente, se sugieren algunas líneas de trabajo para reformar las políticas audiovisuales con el propósito de impulsar y garantizar la diversidad cultural, la pluralidad política y la competencia económica.

Modeling the Effects of Drought in Urban Economies Using Regional Input-Output Analysis

Aim: This research examines the economic impacts of drought severity and duration to interdependent product ion sectors in an urban catchment. Methodology: We developed a dynamic water input - output model extension to analyze the drought vulnerability and resilience of economic sectors in an urban region. The model utilizes the North American Industry Classificat ion System (NAICS), which encompasses 65 economic sectors in our regional analysis. The model is applied to a case study of the United States (US) National Capital Region, a predominantly urban region that is considered one of the major economic drivers of the US. Results: Simulation results identify the critical economic sectors that experience the highest inoperability and economic losses as a result of water reduction schemes implemented during drought events. In the two scenarios studied (drought warnin g and drought emergency), sectors exhibit disproportionate levels of resilience and sensitivity to the magnitude and duration of water reduction. In each case, the economic loss and inoperability rankings of critical sectors differ due to differences in th e quantity and value of the sectors’ production outputs. Conclusion: Observed data trends provide valuable insights for decision makers in formulating drought preparedness policies, water conservation programs , and short - term responses aimed to reduce wate r consumption in cases of emergency. The dynamic water reallocation I - O model developed in this study can be applied to other drought - prone regions and be used to generate insights on the economic consequences of drought, ecosystem thresholds, and water re allocation

A Regional Approach to Health Care Reform

The purpose of this article is to analyze health insurance disparities related to labor environment factors in the Texas-Mexico border region. A logistic regression model was performed using microdata from the 2010 American Community Survey to estimate the probability of having employer-based insurance, controlling labor environment factors such as hours worked, occupation industry, and the choice of private, nonprofit or public sector jobs. Industries primarily employing the Mexican American population are less likely to offer employer-based health insurance. These industries have the North American Industry Classification System (NAICS) code 770 construction, including cleaning, and NAICS code 8680, restaurants and other food services. Although it was found that working in public sector industries such as code 9470, administration of justice, public order, and safety, or NAICS code 7860, elementary and secondary schools, improved by 60% the probability of the Mexican American population having employer-based health insurance, these occupations ranked at the bottom of the main occupation list for Mexican Americans. These findings provide evidence that the labor environment plays an important role in understanding current health insurance access limitations within the Mexican American community under 2010 Patient Protection and Affordable Care Act provisions, which are directed to small business and lower-income individuals.

Classification, benchmarking, and hydroeconomic modeling of nonresidential water users

The US Environmental Protection Agency and the Water Research Foundation have identified the development of a standardized method for classifying and benchmarking nonresidential water users as a major research need. The methodology proposed in this article uses water utility billing data spatially linked to property‐appraisal and business data to arrive at a detailed description of how nonresidential customers use water. Property‐appraisal and business databases are available nationwide and provide an extensive, standardized classification scheme through the North American Industry Classification System, along with data on building area, number of employees, and annual sales as measures of size that can be used to develop water use benchmarks. Additionally, this methodology allows coefficients for water use per dollar of economic activity to be developed and incorporated into hydroeconomic models and other tools used to model the interaction between water use and the economy. For this analysis, data on 4,622 nonresidential parcels in Austin, Texas, were used.

The impact of the tobacco retail outlet environment on adult cessation and differences by neighborhood poverty.

This study examined the impact of tobacco retail outlets on cessation outcomes over time among non-treatment-seeking smokers and assessed differences by neighborhood poverty and individual factors. Observational longitudinal cohort study using geospatial data. We used generalized estimating equations to examine cessation outcomes in relation to the proximity and density of tobacco retail outlets near the home. Eight large Designated Media Areas across the United States. A total of 2377 baseline smokers followed over three waves from 2008 to 2010. Outlet addresses were identified through North American Industry Classification System codes and proximity and density measures were constructed for each participant at each wave. Outcomes included past 30-day abstinence and pro-cessation attitudes. Smokers in high poverty census tracts living between 500 m and 1.9 km from an outlet were over two times more likely to be abstinent than those living fewer than 500 m from an outlet (P < 0.05). Density within 500 m of home was associated with reduced abstinence [odds ratio (OR) = 0.94; confidence interval (CI) = 0.90, 0.98) and lower pro-cessation attitudes (Coeff = -0.07, CI = -0.10, -0.03) only in high poverty areas. In low poverty areas, density within 500 m was associated with greater pro-cessation attitudes (OR = 0.06; CI = 0.01, 0.12). Gender, education and heaviness of smoking did not moderate the impact of outlet proximity and density on cessation outcomes. In the United States, density of tobacco outlets within 500 m of the home residence appears to be negatively associated with smoking abstinence and pro-cessation attitudes only in poor areas.

Where do they go and how do they get there? Older adults' travel behaviour in a highly walkable environment

Mobility—the ability to move about in one's neighbourhood and maintain independence—is essential for older adults' wellbeing. Neighbourhood environments support or hinder mobility especially as health declines and physical vulnerability increases with age. Linkages between mobility and planning and policy are key to designing age-friendly neighbourhoods with destinations that encourage older adults to get out and be physically active. We describe the mobility of older adults who live in a highly walkable neighbourhood. Specifically, we address the questions of ‘where do older adults go?’ (destinations) and ‘how they get there?’ (travel mode, physical activity). We recruited older adults (age 60+) who live in Vancouver's downtown core, an area acknowledged to be highly walkable (Walk Score®: 94–97/100), and who leave their houses most days of the week. Participants (n = 184) recorded travel in diaries and wore an ActiGraph GT3X + accelerometer for 7 days during September to October 2012. We classified reported destinations according to the North American Industry Classification System, and analysed mobility [trip rates (overall and walking), steps, moderate to vigorous physical activity (MVPA)] and associations between travel and physical activity-related mobility measures. Key destinations were grocery stores (13.6% of trips), restaurants (7.2%), malls/marketplaces (5.5%), and others' homes (5.4%). Participants made 4.6 (std: 2.5) one-way trips/day, took 7910.1 (3871.1) steps/day, and accrued 39.2 (32.9) minutes/day of MVPA. Two-thirds of trips were by active modes (62.8% walk, 3.2% bike) and 22.4% were by car. Trip rates were significantly associated with physical activity outcomes. Older adults living in highly walkable neighbourhoods were very mobile and frequently used active transportation. Travel destinations signify the importance of nearby commercial and social opportunities, even in a highly walkable environment. The high rates of active travel and physical activity in a walkable neighbourhood suggest that when provided compelling destinations, community dwelling older adults walk more and may achieve health benefits through daily travel.

Prevalence of Workers With Shifts in Hearing by Industry

The purpose of this study was to compare the prevalence of workers with National Institute for Occupational Safety and Health significant threshold shifts (NSTS), Occupational Safety and Health Administration standard threshold shifts (OSTS), and with OSTS with age correction (OSTS-A), by industry using North American Industry Classification System codes. From 2001 to 2010, worker audiograms were examined. Prevalence and adjusted prevalence ratios for NSTS were estimated by industry. NSTS, OSTS, and OSTS-A prevalences were compared by industry. Twenty percent of workers had an NSTS, 14% had an OSTS, and 6% had an OSTS-A. For most industries, the OSTS and OSTS-A criteria identified 28% to 36% and 66% to 74% fewer workers than the NSTS criteria, respectively. Use of NSTS criteria allowing for earlier detection of shifts in hearing is recommended for improved prevention of occupational hearing loss.

An intra- and inter-industry evaluation of three classification schemes common in capital market research

We compare the Standard Industry Classification (SIC), the North American Industry Classification System (NAICS) and the Global Industry Classification Standard (GICS) schemes in their effectiveness to group stocks with similar operating characteristics. We are the first to analyse and compare individual functional category levels within and across each industry classification and test whether the three industry classifications show significant improvement in homogeneity with finer industry partitions across a wide range of research applications. Our results suggest that the GICS system offers advantages over the other two systems in grouping firms across all its levels of industry categories and across different application schemes common to capital market research. However, the SIC and NAICS offer additional advantages across their finest industry partitions. Our study has important implications for users of industry classifications in various financial and economic analyses, research settings and regulatory contexts.

Abstract W P147: Occupational and Risk of Stroke: A Population-Based Study in the United States

BACKGROUND: Previous studies on occupational exposure for risk of stroke have been limited in the range of occupations. There has not been a population-based study on a nationally representative sample that investigates the association between a comprehensive list of occupations and risk of stroke in the United States. Objective: To examine the relative risk for the occurrence of stroke between different occupations in the U.S. adult population. METHODS: Population-based complex survey study using the National Health Interview Survey, 2004 through 2012 which included randomly sampled non-institutionalized adults (n=186,539) in the United States.The main variables measured included self-reported stroke defined as ‘Have you ever been told you had a stroke in the past 12 month” by a physician; The predictor variable, occupation, was obtained using the census occupational codes, and regrouped according to North American Industrial Classification System. Odds ratios with 95% confidence intervals were calculated. Chi-square test was used. RESULTS: After controlling for age, sex, ethnicity, hypertension, diabetes, angina pectoris, coronary heart disease, smoking status and alcohol drinking status, and with legal Occupations as a reference group, the likelihood of developing stroke was 1.85 times higher in Production Occupations, 1.92 times higher in Food Preparation and Serving Related Occupations, 1.93 times higher in Personal Care and Service Occupations, 1.94 times higher in Transportation and Material Moving Occupations, 2.08 times higher in Healthcare Support Occupations, and 2.11 times higher in Construction and Extraction Occupations. CONCLUSION: This study identifies occupation groups in US adult population with higher risk for stroke. Alleviation from workplace stress is suggested as a goal for behavioral intervention in the higher-risk occupations. Additional research on characteristics of the high risk occupations is needed for guiding prevention in these US job settings.

Using the Tax System to Address Competition Issues with a Carbon Tax

This paper considers how tax reductions financed by a carbon tax could be designed to mitigate the need for specific relief for firms in select energy-intensive, trade-exposed (EITE) sectors. In particular, I consider impacts on manufacturing sectors at the six-digit North American Industry Classification System level, with a special focus on firms that would be presumptively eligible for competitiveness relief using the criteria in the Waxman-Markey bill (H.R. 2454). The paper has a number of findings. First, determination of eligibility for relief analogous to the free allowance allocation in H.R. 2454 is sensitive to energy intensity. Second, providing compensation to EITE sectors through the corporate income tax — analogous to the output-based allowance allocation in Waxman-Markey — is certainly feasible, but tax appetite within the EITE sectors is insufficient to fully use any credits that attempted to offset more than about one-quarter of their carbon tax liability. Third, certain reforms do better than others at providing disproportionate relief to EITE sectors. Finally, economic theory predicts a substantial cost to diverting carbon tax revenue toward compensation of specific sectors. Theory also suggests that firms should treat policy risk no differently from the way they treat the other risks they face as they do business. But politics may dictate otherwise; if so, the analysis here suggests that certain approaches may work better than others to ensure that relief is appropriately targeted at minimal cost.

An Intra and Inter-Industry Evaluation of Three Classification Schemes Common in Capital Market Research

We compare the Standard Industry Classification (SIC), the North American Industry Classification System (NAICS) and the Global Industry Classification Standard (GICS) schemes in their effectiveness to group stocks with similar operating characteristics. We are the first to analyse and compare individual functional category levels within and across each industry classification and test whether the three industry classifications show significant improvement in homogeneity with finer industry partitions across a wide range of research applications. Our results suggest that the GICS system offers advantages over the other two systems in grouping firms across all its levels of industry categories and across different application schemes common to capital market research. However, the SIC and NAICS offer additional advantages across their finest industry partitions. Our study has important implications for users of industry classifications in various financial and economic analyses, research settings and regulatory contexts.

Economic freedom, entrepreneurial activity, and the service sector

Purpose – The purpose of this paper is to focus on the impact of economic freedom on entrepreneurial activity in the service sector. Specifically, the paper examines how economic freedom at the state level affects employment among North American Industry Classification System (NAICS) six-digit service industries. Design/methodology/approach – The paper uses a fixed effects model to predict the effect of economic freedom on employment in each of the NAICS six-digit service industries. The paper uses the significance of the economic freedom coefficients to determine which industries grow and which shrink with increases in economic freedom. Findings – The empirical findings reveal that economic freedom improves job growth for some, but not for all industries. Employment tends to grow in the six-digit industries that are categorized as finance and insurance, administrative and waste services, and professional and technical services. Employment in many of the health care and social assistance industries as wel...

Do production subsidies have a wage incidence in wind power?

Employment in electricity generation from renewable resources has expanded rapidly in the US and in Texas during the last decade. Availability of the Production Tax Credit (PTC) has been an important driver of this growth. Using establishment-level employment and payroll data for Texas at the North American Industrial Classification System (NAICS)-6 level, we analyse the differences in average wages between firms generating electricity from fossil fuels and those generating electricity from wind power. We compare relative average wages before and after the rapid expansion of wind power development that followed the ex ante renewal of the PTC in 2006. Our main finding using both the parametric and nonparametric estimation techniques proposed by Racine and Li (2004), is that average payrolls for wind power generators increased relative to fossil fuel-based electricity generators after 2006.

7 Statistical modelling of occupational exposure to polycyclic aromatic hydrocarbons using osha data

ObjectivesPolycyclic aromatic hydrocarbons (PAHs) are a group of chemicals consisting primarily of fused aromatic rings. As environmental pollutants, PAHs are of concern because some variants are carcinogenic. Our objective is...