What's New - June 2004

Site of the Month:  HigherEdInfo 

June is a big month for college graduations, and in keeping with that theme, our site of the month highlights a brilliant collection of higher education statistics. HigherEdInfo.Org, assembled by the National Information Center for Higher Education Policymaking and Analysis, presents a diverse array of data on higher education on a state-by-state basis.  You'll find information grouped into a series of topics including preparation, participation, affordability, student learning, completion, benefits, employment, and finance.  These groupings offer related sets of data. For example, "Preparation" includes a variety of measures of a state's K-12 system, dropout rates and test scores, while "participation" shows data on the extent of college enrollment, the likelihood of enrolling in college immediately after high school, and  flows of college students among states.

Some of the most interesting data are estimates of the higher education pipeline--the flow of individuals through the educational system from K-12 through college completion. HigherEdInfo offers its estimates of the likelihood of a 9th grade student completing high school, enrolling in college, and completing a college program within 150 percent of the usual time required for a degree (i.e., completing a bachelors degree within six years of high school graduation).  

The site integrates data from a diverse array of sources and summarizes it (by default in a series of color-coded maps of state data). You also can graph the results or drill down to specific data.  Where data for a number of different years are available, you're given the option of choosing a specific year.  The site also contains links that examine the policy implications of the data and show the sources from which it is derived.  If you want a site that compares the overall performance of state education systems, particularly as they relate to higher education, pay a visit to:
http://www.higheredinfo.org

Gross Metro Product: A Data Series Whose Time Has Come? 
BEA Wants to Hear From You.

The regional accounts folks at the U.S. Bureau of Economic Analysis are a pretty inventive bunch, creating highly useful regional data series on a budgetary shoestring. They produce one of EconData.Net’s favorite data series, the Regional Economic Information System (REIS), which provides the nation’s most comprehensive tally of income and employment at the state, metro, and county level. About ten years ago, BEA’s enterprising analysts unveiled Gross State Product (GSP), estimates of state-level economic activity as measured by value added, for 63 industries and the state as a whole. Typically, GSP estimates have been released 17 months after the end of the calendar year; BEA has partial funding to reduce that lag to 6 months. 

While the GSP acceleration effort is underway, BEA staff are planning future regional data enhancements, one of which, potentially, is producing annual estimates of Gross Metropolitan Product (GMP), by industry. However, with budgetary constraints and pressing priorities on other topics (e.g., measuring offshoring activity), funding for a GMP series is difficult to obtain. As practicing regional analysts ourselves, we know that a GMP series would be a highly valuable addition to the practitioners’ and researchers’ analytic toolbox. At present, we don’t truly know the size and composition of our regional economies as they unfold over time, a glaring hole in our understanding. REIS provides total income figures, but total income reflects only about two-thirds of regional value-added activity. While Global Insight (formerly DRI-McGraw-Hill) annually produces GMP estimates on behalf of the U.S. Conference of Mayors (see http://www.usmayors.org/uscm/news/press_releases/documents/metroeconreport_020604.pdf), the relative accuracy of these estimates can be questioned (of necessity, they use a top-down rather than bottom-up methodology) and disaggregation by industry and component is not provided.

Now is your chance to provide your opinion. Would an annual Gross Metropolitan Product series be of value to you? As EconData.Net has access to one of the largest data-using communities in the country, we ask you to let BEA hear your thoughts. A GMP series will not appear unless data users express strong support. A critical mass of positive words from you and your colleagues will have influence on top BEA executives, the BEA Advisory Council, and appropriate Congressional committees as funding decisions are made for upcoming fiscal years.

So: If you think that the availability of GMP would be of value, please take a moment and write an e-mail to that effect to John Kort, Chief, BEA Regional Economic Analysis Division, at john.kort@bea.gov. It’d be helpful, we think, to say a bit about the nature of your work and interests and how you would use a GMP series to enhance them. Please cc EconData.Net (comments@econdata.net) so we can keep track of the communications. If you want to get a sense of how a GMP series would look, you can explore the GSP web site (http://www.bea.gov/bea/regional/gsp.htm).

In a couple months, once BEA absorbs your missives, we’ll let you know how they’ve been received; if a funding request for GMP develops “legs,” we’ll periodically update you on progress, and may ask you to weigh in again, if necessary. Historically, the regional data community has not been a vocal, well-organized constituency that is effective in seeing its needs are addressed in federal budget and program decisions. Consider this request an experiment in making ourselves heard.

Insourcing--US Employment at Foreign-owned firms

In the past several months, outsourcing--the movement of jobs formerly performed in the US to locations elsewhere in the world--has gotten a lot of attention.  Less frequently discussed are the jobs created in the US by foreign businesses.  The numbers involved are formidable--more than 6 million people work for foreign owned firms, nearly a third of them (almost 2 million) in manufacturing enterprises--according to data complied by the Bureau of Economic Analysis.  BEA tracks the US employment in foreign-owned firms, and has done so for two decades, as part of a program that monitors foreign direct investment in the United States.  The BEA data series "employment at US affiliates of foreign-owned firms" is a good indicator of the relative importance of  foreign investment to national and state economies.  State by state data is summarized in Tables 6 and 7 of an article available in a portable document format (.pdf) file at:  
http://www.bea.gov/bea/ARTICLES/2003/08August/0803USAffiliates.pdf  

A group representing a 115 foreign investors and the local affiliates of international firms trumpets the BEA data and other information in their website.  The Organization For International Investment (OFII) promotes the value of what they call "insourcing"-- US employment at foreign-owned firms -- as a boon to the US economy.  They highlight BEA's state by state data, and also provide a listing of recent US investments by international firms.  You'll find this information at:

http://www.ofii.org/insourcing/