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Produced by the NASA Center for Aerospace Information (CASI)
jk PLOication 85.9 ` f i \'

(NASA-CR-175648) A CCOEISISCN OF 1185-22855

METROPOLITAN ANL NON - METROPCLITAN EMPLOYMENT

CHARACTERISTICS: INDICATICNS OF TH I SIZE OF

+ NON- METE 0 PC LI TA I NOME CCESUNICATION unclas

i SIR► ICES OSAA CiASSIS ( Jet PzoFulsion Lab.) G3 14807

t A ?Comparison of Metropolitan and

Ikon.Metropolitan Employment

Characteristics: Indications of

th4,- 'Si a of Non-pMdtrop 'titan

Mobile Communication Serveces

User Classes

R.E... Mcox

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1 February 15, 1985 

Office of Space Sciences and Applications

National Aeronsuiice and S we A ministration

Jet Propulsion Laboratory

California Institute of Technology

Pasadena, California

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JPL Publication 85.9

A Comparison of Metropolitan and

Non-Metropolitan Employment

Characteristics: Indications of

the Size of Non-Metropolitan

Mobile Communication Services

User Classes

R.E. Wilcox

February 15, 1985

Office of Space Sciences and Applications

National Aeronautics and Space Administration

Jet Propulsion laboratory

California Institute of Technology

Pasadena, California
The research described in this publication was carried out by the Jet Propulsion

Laboratory, California Institute of Technology, under contract with the National

Aeronautics and Space Administration.
ABSTRACT

This study was conducted to evaluate the similarities and differences

between areas inside and outside U.S. metropolitan areas in terms of their

commercial/industrial and government employment characteristics.

The comparison focuses on the levels, shares, and composition of

employment in the commercial/industrial and government sectors that represent

potential classes of land mobile communications users. The major findings of

the analysis are as follows:

(1) Non-metropoliltan commercial/industrial user classes of land mobile

communication services exist in significant numbers.

(2) The compositions of non-metropolitan and metropolitan

commercial/industrial user classes of land mobile communication

services closely resemble each other.

(3) Non-metropolitan areas have significant levels of the government

user classes that represent potential markets for land mobile

communication services.

(4) Non-metropolitan local governments have a significantly larger

proportion of their employment in the primary user classes cf

private land mobile radio service than do metropolitan local

governments.

iii
CONTENTS

EXECUTIVESUMMARY . . . . . . . . . . . . . . . . . . . . . . . . ES-1

I. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . 1-1

A. PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1

B. APPROACH . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1

1. Focus on National- and State-Level Data . . . . . . . . 1-1

2. Analytical Method . . . . . . . . . . . . . . . . . 1-1

C. ORGANIZATION OF THE REMAINDER OF THIS REPORT. . . . . . . . . 1-4

II. DATA-BASE DESCRIPTION . . . . . . . . . . . . . . . . . . . . . . 2-1

A. DATA-BASE DESCRIPTION AND LIMITATIONS . . . . . . . . . . . . 2-1

1. Industrial/Commercial Employment Statistics -

County Business Patterns . . . . . . . . . . . . . . . . 2-1

2. Government Employment Statistics -

Census of Governments . . . . . . . . . . . . . . . . 2-2

3. Other Limitations of the Selected Data Bases . . . . . . 2-3

B. CROSS-CORRELATION OF FCC AND CENSUS CATEGORIES . . . . . . . 2-5

III. ANALYSIS OF SMSA VERSUS NON-SMSA COMMERCIAL/INDUSTRIAL ACTIVITY . 3-1

A. COMMERCIAL/INDUSTRIAL EMPLOYMENT LEVELS . 3-1

B. SHARES OF COMMERCIAL/INDUSTRIAL EMPLOYMENT . . . . . . . . . 3-1

C. SMSA AND NON-SMSA EMPLOYMENT MIXES . . . . . . . . . . . . . 3-3

1. National-Level Comparison of Commercial/Industrial

Activity Mixes . . . . . . . . . . . . . . . . . . . . . 3-3

2. State-Level Comparison of Commercial/Industrial

Activity Mixes . . . . . . . . . . . . . . . . . . . . . 3-4

IV. ANALYSIS OF SMSA VERSUS NON-SMSA LOCAL GOVERNMENTAL ACTIVITY . . . 4-1

A. LEVELS OF LOCAL GOVERNMENT EMPLOYMENT . . . . . . . . . . . . 4-1

lNG PAGE BLANK NOWT PRMED

v

t
i.

1. National Non-SMSA Levels of Local Government

Employment . . . . . . . . . . . . . . . . . . . . . 4-1

2. Levels of Government Employment in Individual States . . 4-1

3. Sectors of State Government Inadequately Represented

by Local Government Data . . . . . . . . . . . . 4-3

B. SECTOR SHARES OF GOVERNMENTAL EMPLOYMENT. . . . . . . . . 4-3

1. Individual Sector Comparisons of SMSA and Non-SMSA

Local Government Employment . . . . . . . . . . . 4-3

C. SMSA AND NON-SMSA GOVERNMENT EMPLOYMENT MIXES . . . . . . . . 4-4

1. National-Level Comparison of Governmental

Activity Mixes . . . . . . . . . . . . . . . . . . . . . 4-4

2. State-Level Comparison of Governmental Activity

Mixes . . . . . . . . . . . . . . . . . . . . . . . . . 4-7

V. REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-1

VI. BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-1

APPENDIXES

A. DEFINITION OF STANDARD METROPOLITAN STATISTICAL AREAS . . . . A-1

B. DATA-BASE DESCRIPTION . . . . . . . . . . . . . . . . . . . . B-1

C. COMPARISON OF SMSA AND NON-SMSA INDIVIDUAL COMMERCIAL/

INDUSTRIAL SECTORS . . . . . . . . . . . . . . . . . . . . . C-1

D. STATE-LEVEL COMPARISONS OF SMSA AND NON-SMSA COMMERCIAL/

INDUSTRIAL ACTIVITY MIXES . . . . . . . . . . . . . . . . . . D-1

E. INDIVIDUAL SECTOR COMPARISON OF SMSA AND NON-SMSA LOCAL

GOVERNMENTS. . . . . . . . . . . . . . . . . . . . . . . . . E-1

F. STATE-LEVEL COMPARISONS OF SMSA AND NON-SMSA LOCAL

GOVERNMENT ACTIVITY MIXES . . . . . . . . . . . . . . . . . . F-1

G. REVIEW COMMENTS FROM THE BUREAU OF THE CENSUS,

GOVERNMENTS DIVISION . . . . . . . . . . . . . . . . . . . . G-1

Tables

2-1. Major Economic Divisions of Industrial / Commercial

Employment, 1981 . . . . . . . . . . . . . . . . . . . . . 2-1

vi
'-C J VL -&V&OLV..O au.+ ^^ aca add Aggregations of Governmental

Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-4

2-3. Pleasure Boats in the United States . . . . . . . . . . . . . . . 2-5

2-4. FCC Private Land Mobile Radio Service Categories and SubCategories and Representative Census Standard Industrial

Classification (SIC) Categories and Sub-Categories . . . . . . . . 2-6

3-1. SMSA Versus Non-SMSA Commercial/Industrial Employment,

United States, 1981 . . . . . . . . . . . . . . . . . . . . . . . 3-2

3-2. Non-SMSA Commercial/Industrial Employment Levels in

Selected States . . . . . . . . . . . . . . . . . . . . . . . . . 3-3

3-3. Coefficients of Correlation between SMSA and Non-SMSA

Distributions (Mixes) of Industrial/Commercial Employment 3-4

3-4. Percentage Composition of SMSA and Non-SMSA Commercial/

Industrial Employment by Sector for the United States and

Selected States, 1981 . . . . . . . . . . . . . . . . . . . . . . 3-7

4-1. SMSA Versus Non-SMSA Local Government Employment,

United States, 1977 . . . . . . . . . . . . . . . . . . . . . . . 4-2

4-2. Non-SMSA Local Government Employment Levels in Selected

States, 1977 . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-2

4-3. State Government Employment, 1977 . . . . . . . . . . . . . . . . 4-4

4-4. Proportionate SMSA and Non-SMSA Shares of Local Government

Employment, United States, 1977 . . . . . . . . . . . . . . . . . 4-5

4-5. Coefficients of Correlation Between SMSA and Non-SMSA

Compositions (Mixes) of Local Government Employment . . . . . . . 4-8

4-6. Proportion of SMSA and Non-SMSA Non-Education Local

Government Employment in Sectors Representing UserSpecific FCC Categories, 1977 . . . . . . . . . . . . . . . . . . 4 ­9

B-1 Comparison of Census Standard Industrial Classification (SIC)

and FCC Private Land Mobile Radio Service Categories and

Sub-Categories . . . . . . . . . . . . . . . . . . . . . . . . . . B-6

C-1 Commercial/Industrial Two-Factor Analysis of Variance . . . . . . C-11

C-2 Percentage Composition of SMSA and Non-SMSA Commercial/

Industrial Employment by Sector for the United States

and Selected States, 1981 . . . . . . . . . . . . . . . . C-12

E-1 Government Service Two-Factor Analysis of Variance . . . . . . . . E-15

vii
i

E-2 Percentage Composition of SMSA and Non-SMSA Local Government

Employment by Sector for the United States and Selected

States, 1977 . . . . . . . . . . . . . . . . . . . . . . E-16

r° E-3 Non-SMSA Versus SMSA Local Government Natural Resources and Local

Parks and Recreation Employment, United States, 1977 . . . . . . . E-17

E-4 State Government Versus Local Government Natural Resources

Employment, United States, 1977 E-17

ee Figures

1-1. States Selected for Individual Analysis . . . . . . . . . . . . . 1-2

3-1. Percentage Mix of SMSA Versus Non-SMSA Commercial/Industrial

e Employment, United States, 1981 . . . . . . . . . . . . . . 3-5 t

4-1. Percentage Mix of SMSA Versus Non-SMSA Local Government

Employment, United States, 1977 . . . . . . . . . . . . . . . . . . 4-6

C-1. SMSA Versus Non-SMSA Employment-Agricultural Services,1981 . . . . C-6

C-2. SMSA Versus Non-SMSA Employment-Wholesale Trade, 1981 . . . . . . C-6

C-3. SMSA Versus Non-SMSA Employment-Nonclassifiable

Establishments, 1981 . . . . . . . . . . . . . . . . . . . . . . . C-7

C-4. SMSA Versus Non-SMSA Employment-Transportation 6 Utilities, 1981 . C-7

C-5. SMSA Versus Non-SMSA Employment-Contract Construction, 1981 . . . C-8

C-6. SMSA Versus Non-SMSA Employment-Manufacturing, 1981 . . . . . . . C-8

C-7. SMSA Versus Non-SMSA Employment-Retail Trade, 1981 . . . . . . . . C-9

6 C-8. SMSA Versus Non-SMSA Employment-Mining, 1981 . . . . . C-9

C-9. SMSA Versus Non-SMSA Employment-Services, 1981 . . . . . . . . C-10

C-10. SMSA Versus Non-SMSA Employment-Finance, Real Estate,

6 Insurance, 1981 . . . . . . . . . . . . . . . . . . . . . . C-10

D-1. Percentage Mix of SMSA Versus Non-SMSA Commercial/Industrial

Employment, Alaska, 1981 . . . . . . . . . . . . . . . . . . . . . D-4

2. Percentage Mix of SMSA Versus Non-SMSA Commercial/Industrial

Employment, California, 1981 . . . . . . . . . . . . . . . . . D-5

3. Percentage Mix of SMSA Versus Non-SMSA Commercial/Industrial

Employment, Florida, 1981 . . . . . . . . . . . . . . . . D-6

4. Percentage Mix of SMSA Versus Non-SMSA Commercial/Industrial

Employment, Iowa, 1981 . . . . . . . . . . . . . . . . . . . . . . D-7

viii

- - - 

t
F

D-5. Percentage Mix of SMSA Versus Non-SMSA Commercial/Industrial

Employment, Montana, 1981 . . . . . . . . . . . . . . . . . . . . D-8

D-6. Percentage Mix of SMSA Versus Non-SMSA Commercial/Industrial

Employment, New York, 1981 . . . . . . . . . . . . . . . . . . D-9

D-7. Percentage Mix of SMSA Versus Non-SMSA Commercial /Industrial

Employment, Oregon, 1981 . . . . . . . . . . . . . . . . . . . . . D-10

D-8. Percentage Mix of SMSA Versus Non-SMSA Commercial /Industrial

Employment, Pennsylvania, 1981 . . . . . . . . . . . . . . . . . . D-11

D-9. Percentage Mix of SMSA Versus Non-SMSA Commercial/Industrial

Employment, South Dakota, 1981 . . . . . . . . . . . . . . . . . . D-12

E-1. SMSA Versus Non-SMSA Government Employment-Local

Utilities, 1977 . . . . . . . . . . . . . . . . . . . . . . . . . E-8

E-2. SMSA Versus Non-SMSA Government Employment-Income

Maintenance, 1977 . . . . . . . . . . . . . . . . . . . . . . E-8

E-3. SMSA Versus Non-SMSA Government Employment-Education, 1977 . . . . E-9

E-4. SMSA Versus Non-SMSA Government Employmert-Other, 1977 . . . . . . E-9

E-5. SMSA Versus Non-SMSA Government Employment-Health &

Hospitals, 1977 . . . . . . . . . . . . . . . . . . . . . . . E-10

E-6. SMSA Versus Non-SMSA Government Employment-Highways, 1977 . . . . E-10

E-7. SMSA Versus Non-SMSA Government Employment-Government

Administration, 1977 . . . . . . . . . . . . . . . . . . . . . . . E-11

E-8. SMSA Versus Non-SMSA Government Employment-Police & Fire, 1977 . . E-11

E-9. SMSA Versus Non-SMSA Government Employment-Natural

Resources, 1977 . . . . . . . . . . . . . . . . . . . . . . . . . E-12

E-10. SMSA Versus Non-SMSA Government Employment-Other

Transportation, 1977 . . . . . . . . . . . . . . . . . . . . . . . E-12

E-11. SMSA Versus Non-SMSA Government Employment-Corrections, 1977 . . . E-13

E-12. SMSA Versus Non-SMSA Government Employment-Housing & Urban

Renewal, 1977 . . . . . . . . . . . . . . . . . . . . . . . . . . E-13

E-13. SMSA Versus Non-SMSA Government Employment-Transit, 1977 . . . . . E-14

F-1. Percentage Mix of SMSA Versus Non-SMSA Local Government

Employment, Alaska, 1977 . . . . . . . . . . . . . . . . . . . . . F-4

F-2. Percentage Mix of SMSA Versus Non-SMSA Local Government

Employment, California, 1977 . . . . . . . . . . . . . . . . . . . F-5

s

ix 
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F-3. Percentage Mix of SMSA Versus Non-SMSA Local Government

Employment, Florida, 1977 . . . . . . . . . . . . . . . . F-6

F-4. Percentage Mix of SMSA Versus Non-SMSA Local Government

Employment, Iowa, 1977 . . . . . . . . . . . . . . . . . . F-7

F-5. Percentage Mix of SMSA Versus Non-SMSA Local Government

Employment, Montana, 1977 . . . . . . . . . . . . . . . . . . F-8

F-6. Percentage Mix of SMSA Versus Non-SMSA Local Government

Employment, New York, 1977 . . . . . . . . . . . . . . . . . . . . F-9

F-7. Percentage Mix of SMSA Versus Non-SMSA Local Government

Employment, Oregon, 1977 . . . . . . . . . . . . . . . . . . . . . F-10

F-8. Percentage Mix of SMSA Versus Non-SMSA Local Government

Employment, Pennsylvania, 1977 . . . . . .. . . . . . . . . . . F-11

F-9. Percentage Mix of SMSA Versus Non-SKSA Local Government

Employment, South Dakota, 1977 . . . . . . . . . . . . . . . . . . F-12

s
EXECUTIVE SUMMARY

t

i A. PURPOSE

This study was conducted for the National Aeronautics and Space Administration's (NASA's) Office of Space Science and Applications, Communications

Division to compare the size and composition of commercial/industrial business

5 and government service sectors in non-metropolitan areas to those of metropolis tan areas. This information may be useful in determining the extent to which

non-metropolitan areas have similar needs as metropolitan areas for mobile

communications service. (Such services can be provided to non-metropolitan

areas by land mobile satellite systems.) Industrial suppliers of land mobile

equipment and services may also find this information helpful in identifying

potential markets for land mobile communication systems.

B. APPROACH

The comparison required three steps. First, commercial/industrial and

government eoployment data from the U.S. Bureau of the Census (hereafter

referred to ae "Census") for metropolitan and non-metropolitan areas were

compilid. Secind, Federal Communications Commission (FCC) definitions of

commercial/industrial and government activities eligible to obtain licenses

for using radio communication systems in the private land mobile radio service

frequencies were used to identify and aggregate Census data into

representative categories (i.e., "user classes") of potential users of land

mobile communication services. The FCC categories of activities eligible for

licensing and operating private land mobile radio systems were used solely as

a frame of reference for aggregating Census data into categories (referred to

throughout the study as "user classes") more appropriate to the discussion of

mobile communication services users. The findings of this study are relevant

to the entire range of land mobile communication applications such as mobile

telephone, mobile dispatch, and mobile data services. Finally, the

composition and characteristics of these "user classes" in metropolitan and

j non-metropolitan areas were compared.

1. Data-Base Description and Limitations

National-level data provided the orima,y basis for comparing

metropolitan and non-metropolitan areas. Data from nine selected states were

also evaluated to indicate the range of metropolitan/non-metropolitan

characteristics at the state level (see Figure 1). These nine states were

chosen to represent regional differences and the range of extremes between

densely populated industrial states and low-population-density, predominantly

rural states.

! The U.S. Bureau of the Census characterizes the data as being useful for

analyzing both the industrial structure of regions and market potentials

(Reference 1).

In general, the data used in the analysis understate the level of nonmetropolitan activity. Activities that are partially covered or not

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addressed, but which still contribute to the size of non-metropolitan user

classes of land mobile satellite services include federal and state government

activities, farming, ranching, pleasure boating and barges within the coastal

200-mile limit, Great Lakes and river barge traffic, aircraft, self-employed

individuals, geographically dispersed activities with central offices located

in metropolitan areas, and personal (i.e., non-business/r^on-government)

applications. While some of these activities represent significant potential

markets for land mobile satellite systems, their non-inclusion in this stud

does not change the essence of the findings summarized below.

C. SUMMARY OF MAJOR FINDINGS

1. Commercial / Industrial User Classes

( 1) Non-metropolitan commercial / industrial user classes of land

mobile communication services exist in significant numbers.

(a) In 1981, 19 . 7% of the nation ' s commercial / industrial

activity (representing 14.7 million workers) was located

in non-metropolitan areas.

(b) In states such as Alaska, Iowa, Montana, and South Dakota

(i.e., states with large proportions of their populations

residing in non-metropolitan areas), non-metropolitans

areas comprise between 44 and 90% of total state

commercial / industrial employment.

(c) In states such as California, Florida, New York, and

Pennsylvania (i.e., states with small proportions of

their populations residing outside metropolitan areas),

non-metropolitan areas in each state have between 300,000

and 600 , 000 people working in the commercial/industrial

sectors of the economy.

(2) The compositions of non-metropolitan and metropolitan

commercial / industrial user classes of land mobile

communications closely resemble each other.

(a) The individual proportion of non-metropolitan employment

in the "Construction," "Manufacturing," "Transportation,

Communications, and Utilities," "Wholesale Trade,"

"Ret.il Trade," and "Services" sectors varies less than

30% from the proportion of metropolitan employment in the

same sectors. These five sectors contain 89 . 6 and 90.4%

of non-metropolitan and metropolitan employment,

respectively.

2. Local Government User Classes

(1) Even though distinct differences exist between non-metropolitan and metropolitan local governments, non-metropolitan

areas still have significant levels of the government user

M. , .
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classes that represent potential markets for land mobile

communication services.

(a) In 1977, non-metropolitan areas contained 26.8% of local

government activity nationwide. This percentage

represents a local government employment level in excess

of two million workers.l

(b) Non-metropolitan areas have between 15.1 and 38.9% of

their total local government employment in sectors that

represent the primary categories of activities

eligible2 for private land mobile radio services (i.e.,

the FCC sub-categories of "Public Safety - Police, Fire,

Highway Maintenance, and Forestry Conservation," "Special

Emergency - Medical Services, School Buses, and Beach

Patrol," and "Industrial - Power, Petroleum, and Special

Industrial").

(c) In Alaska, Iowa, Montana, and South Dakota (i.e., states

with large non-metropolitan populations), nonmetropolitan areas contain between 56.6 and 87.4% of

total state local government employment.

(d) California and New York (i.e., states with the vast

majority of their population living in metropolitan

areas) have high levels of non-metropolitan local

government activity: These two states have almost 70,000

and over 80,OCU non-metropolitan local government

employees, respectively.

(2) Non-metropolitan local governments have a larger proportion of

their employment in the primary sub-categories of private land

mobile radio than do metropolitan local governments.

(a) Sixty-three percent of non-metropolitan and 55% of

metropolitan non-education local government employment

nationwide exist in sectors representative of the

user-specific government user classes of private land

mobile radio.3

I The 1977 version of the Census of Governments was the most recent and

available local government census for the analysis that provided full

coverage of the U.S.

2 "Eligible" here refers to the FCC definitions of commercial/industrial and

government activities that can obtain licenses for using radio communication systems in the private land mobile radio service frequencies.

3The user-specific FCC sub-categories relevant to government user classes

include "Public Safety - Police, Fire, Highway Maintenance, and Forestry

Conservation," Special Emergency - Medical Services, School Buses, and

Beach Patr, .' and "Industrial - Power, Petroleum, and Special Industrial."

ES-4 
SECTION I

INTRODUCTION

A. PURPOSE

This study was conducted for the National Aeronautics and Space Administration's (NASA's) Office of Space Science and Applications, Communications

Division to compare the size and composition of commercial/industrial business

and government service sectors in non-metropolitan areas to those of

metropolitan areas. This information may be useful in determining the extent

to which non-metropolitan areas have similar needs as metropolitan areas for

mobile communication services. (Such services can be provided to

non-metropolitan areas by land mobile satellite systems.) Industrial

suppliers of lend mobile equipment and services also may find this information

helpful in identifying potential markets for land mobile communication systems.

B. APPROACH

1. Focus on National- and State-Level Data

Both national- and state-level data 4ere used in the analysis.

National data provided the primary basis for comparing metropolitan and

i non-metropolitan areas. Data from nine selected states were used to indicate

the range of metropolitan and non-metropolitan characteristics at the state

level. The nine states selected (Alaska, California, Florida, Iowa, Montana,

New York, Oregon, Pennsylvania, and South Dakota) were chosen to represent

regional differences and the range of extremes between densely populated,

industrial states and low-population-density, predominantly rural states (see

Figure 1-1).

2. Analytical Method

The analysis was conducted in three steps. First, commercial/

industrial business and government service employment data for Standard

Metropolitan Statistical Areas (SMSAs) and non-SMSAs were compiled from

publications of the Department of Commerce's Bureau of the Census (hereafter

referred to as the Census).' Level-of-employment data instead of

l In 1983, the number and delineation of SMSAs in the U.S. were changed and

renamed Metropolitan Statistical Areas (MSAs) by the U.S. Office of

Management and Budget. Because these changes did not occur in time to be

incorporated into the Bureau of the Census' planning for the 1981 census of

County Business Patterns or the 1977 censuses of Local Government Employment

(i.e., the most recent and available censuses relevant to this study), the

SMSA designations were used. Therefore, this study's analysis and results

are based on SMSA and non-SMSA distinctions. The differences in the

definitions of SMSAs and MSAs are minor and do not affect the results of

this study (Reference 2).

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number-of-establishments data were used because the former provides a more

accurate indicator of actual activity than the latter. The Census data were

examined to define those areas where actual business and government activity

levels were not fully represented.

Second, Federal Communications Commission (FCC) definitions of

commercial/industrial and government activities eligible to obtain licenses for

using radio communication systems in the private land mobile radio service

frequencies were used to identify and guide aggregations of Census data into

representative categories (i.e., user classes) of potential land mobile

communication services users. 2 Appendix B describes in detail the

cross-correlation of FCC and Census categories.

Third, SMSA and non-SMSA levels, shares, and composition of commercial/

industrial and local government employment in the categories representing land

mobile communication services user classes were compared. The calculations

and the use of their results are as follows:

(1) SMSA and non-SMSA employment levels -- provides a basis for

comparing the absolute levels of SMSA and non-SMSA user classes.

(2) SMSA and non-SMSA employment as percentages of total employment --

provides a basis for comparing the relative size of land mobile

communication services user classes in SMSA and non-SMSA areas.

(3) Proportion of total employment contained in each employment

category for SMSA and non-SMSA areas -- provides a basis for

comparing the composition of SMSA and non-SMSA user classes.

(4) Coefficients of correlation between SMSA and non-SMSA employment

mixes -- indicates the degree of similarity between SMSA and

non-SMSA user class mixes.

The entire analysis was based on population data from the Department of

Commerce, Bureau of the Census. No projections or estimates of commercial/

industrial or governmental activity levels were used. Two statistical

techniques were used: the correlation analysis mentioned in item (4) above

and a statistical analysis of variance test for identifying business and

government sectors at the state level with similar or dissimilar relative

levels of SMSA and non-SMSA employment. These techniques were used for

simplifying the presentation of state-level data and for providing supporting

evidence of apparent SMSA/non-SMSA similarities and differences. Even though

the entire analysis was based on population as opposed to sample data, neither

of the two statistical techniques was used as the primary basis for the

study's conclusions.

2The FCC categories of activities eligible for licensing and operating

private land mobile radio systems were used solely as a frame of reference

for aggregating Census data into categories (referred to throughout the

study as "user classes") more appropriate to the discussion of mobile

communication services users. The findings of this study are relevant to

the entire range of land mobile communication applications .-ch as mobile

telephone, mobile dispatch, and mobile data services.

1-3

t _ 
C. ORGANIZATION OF THE REMAINDER OF THIS REPORT

The remainder of this report is organized into three sections that

present the major results of the study, and seven appendixes, which provide

the detailed analysis and backup information supporting the study's findings.

Section II describes the Census data bases that were used in the analysis and

their limitations and summarizes the cross-correlation of FCC and Census

activity classification categories. Sections III and IV outline the major

results of the comparison of SMSA and non-SMSA land mobile communication

services user classes involved in commercial/industrial and governmental

activity, respectively. Appendix A provides a definition of SMSAs. Appendix

B details the cross-correlation and analysis of FCC and Census activity

classification categories. Appendixes C through F present the in-depth

comparison and analysis at the individual state level of SMSA versus non-SMSA

user classes of land mobile communications involved in commercial/industrial

and governmental activities. Appendix G contains a copy of the Census

Bureau's review comments on the draft version of this document.

F_

1-4
DATA-BASE DESCRIPTION

A. DATA-BASE DESCRIPTION AND LIMITATIONS

The analysis presented in this report was based on data from the most

recently published editions and unpublished aggregates of two major U.S.

Department of Commerce, Bureau of the Census data bases: the 1981 edition of

County Business Patterns and the 1977 edition of Census of Governments.3

Together, these two data bases broadly represent the activities currently

eligible for private land mobile radio service.

1. Industrial/Commercial Employment Statistics - County Business Patterns

a. General Description. The 1981 edition of County Business

Patterns was used as the source for state statistics on industrial / commercial

employment. ( The Economics Surveys Division of the Bureau of the Census

provided unpublished SMSA and non -SMSA national aggregates of published state

data.) County Business Patterns presents employment statistics by county and

industry for each state. Industrial/commercial employment is broken down into

major economic divisions of the economy using 11 categories (see Table 2-1).

Table 2-1. Major Economic Divisions of Industrial / Commercial

Employment, 1981a

Agricultural Services, Forestry, Fisheries

Mining

Contract Construction

Manufacturing

Transportation and Other Public Utilities

Wholesale Trade

Retail Trade

Finance, Insurance, and Real Estate

Services

Nonclassifiable Establishments

aCounty Business Patterns, 1981, U.S. Department of Commerce, Bureau of the Census.

;I

3The 1977 version of the Census of Governments is the most recent local1 government census available that provides full coverage of the United

States. Moreover, the Bureau of the Census, in their review of this study,

(Continued p. 2-2.) ^j

2-1
The data are taken from (1) the employment and payroll information contained

in Internal Revenue Service Form 941 (a quarterly federal tax return that each

legal entity having paid employees must file) and (2) the Bureau of the Census

Annual Company Organization Survey (Reference 1). The Bureau of the Census

characterizes these data as being:

' "... useful for analyzing market potential, measuring the effectiveness

of sales and advertising programs, setting sales quotas and budgets,

- analyzing the industrial structure of regions, making basic economic

studies of small areas, and serving other business uses. They are also

useful to government agencies for administration and planning purposes."

(Reference 1)

b. Limitations. Because this data base only covers

establishments with more than one employee, self-employed individuals are not

included; this incompleteness of the data base does not impact the results of

the analysis inasmuch as self-employed individuals constitute approximately

only 9% of the total national workforce (Reference 3). Also, this data base

does not cover railroads, farms, or ranches.

A more relevant limitation of the County Business Patterns data base is

that the location of establishments engaged in geographically dispersed

_.^ activities is represented by central administrative offices and auxiliary

establishments.

"For activities such as construction, transportation [includes long haul

trucking], communications, lectric, gas, sanitary services, dispersed

sales activities, and similar physically dispersed operations,

establishments are represented by those relatively permanent main or

branch offices, terminals, stations, etc., which are either (1) directly

responsible for supervising such activities or (2) the base from which

personnel operate to carry out these activities" (Reference 1, p. vi).

Therefore, the potential industrial/commercial non-metropolitan land mobile

satellite communications market (represented here by non-SMSA activities) is

understated because SMSA-based activities that occur within non-SMSA areas

(and intra-SMSA rural areas) are not classified as non-SMSA activities.

2. Government Employment Statistics - Census of Governments

a. General Description. The 1977 Census of Governments was used

as the source for national and state statistics on governmental employment.

The Census has three major categories of government: federal, state, and local

government. Local governments include counties, municipalities, townships,

has stated that (1) "... since the 1977 Census, there has been no

appreciable change in the mix of employment types or shifts from urban to

rural [areas) or vice versa" and (2) that the findings of the Census'

Govenment Division It those of this study (Reference 2, Appendix G).

2-2

1 ^ ^. ^ fig.:-' . ^ i•
school districts, and special districts. As shown in the first column of

Table 2-2, there are eight major divisions of government employment. To

highlight potential mobile communications government markets, the analysis

used selected aggregations of detailed employment statistics (see column 2 of

Table 2-2). The data were collected as part of the regular five-year Census

of Governments. Pertinent to this report's comparison of SMSA and non-SMSA

areas, the Bureau of the Census notes that for government functions:

"... the daLa for "county areas" and State-level aggregates probably

represent the most uniform bases for comparing one geographic area to

another." (Reference 4, p. 6)

b. Limitations. Because SMSA versus non-SMSA breakdowns of state

and federal employment are unavailable, the level of non-SMSA and SMSA

activity cannot be fully quantified. Neither state nor federal government

employment data are reported in the census at a level lower than state

aggregates. While major employment divisions of state employment (e.g.,

education, public safety, etc.) are reported, the federal statistics are

presented either as national aggregates for "selected" employment divisions or

as state aggregates of total federal employment.

The lack of detail for federal employment is due to national security

a reasons -- mainly to obscure the location and numbers of people employed by

the Central Intelligence Agency, the National Security Agency, and the Federal

Bureau of Investigation (Reference 1, p. vii). Because the detailed location

component of the federal and state governments data is missing, the potential

non-metropolitan government land mobile satellite communications market

(represented here by non-SMSA activities) is understated. The degree of

understatement may be significant because many state and federal activities

are characteristically dispersed. Federal agencies such as the FBI,

Immigration and Naturalization, the National Security Agency, and the Drug 

Enforcement Administration frequently engage in activities outside of SMSAs.

Similarly, state government activities encompass a wide range of substantially

non-SMSA activities such as forest fire prevention and control, flood control, 

irrigation, forestry, mineral resource activities, and highway maintenance and 

construction. 

3. Other Limitations of the Selected Data Bases

This study analyzes only those business and local government

activites that are covered by the available data bases. Exemplary activities

that are not covered (besides those mentioned above), but which still

represent potential users of land mobile satellite service include pleasure

boating and barges within the coastal 200-mile limit, Great Lakes and river

barge traffic, aircraft, and personal use (i.e., non-business/non-government)

applications. Some of these user classes may be sizable. For example, as

shown in Table 2-3, there are over nine million pleasure boats in the United

States; of these, it is estimated that 120,000 are fully licensed to sail in

international waters (Reference S).

2-3
Table 2-2. Major Divisions and Selected Aggregations

of Governmental Employment

Census Categories and Selected Category Titles Used in

Aggregations of Sub-Categories a

the Analysis

` Education Services

Social Services and Income Maintenance

• Hospitals + Health

• Public Welfare + Social Insurance

Administration

Transportation

• Highways

• Air Transportation + Water Transportation

Public Safety

• =olice Protection + Fire Protection

• Correction

Environment and Housing

• Natural Resources + Local Parks and

Recreation

• Housing and Urban Renewal + Sewerage +

Sanitation Other than Sewerage

B- Government Administration

Local Utilities

• Water Supply + Electric Power + Gas Supply

• Transit

Education

Hospitals and Health

Income Maintenance

Highways

Other Transportation

Police and Fire Protection

Correction

Environment

Housing and Urban Renewal

Government Administration

Local Utilities

Transit

Other Other

a Source: 1977 Census of Governments - Compendium of Government

Employment, U.S. Department of Commerce, Bureau of the Census.

Also, because the Census data provides a one-point-in-time numeration of

employment, this study does not address the seasonal variations of non-SMSA

business/government user class requirements resulting from the movement of

local populations (e.g., migrant farm workers, national park and forest

visitors, forest fire fighters).

2-4
B. CROSS-CORRELATION OF FCC AND CENSUS CATEGORIES

As mentioned in Section I, the FCC user classification detinitions of

activities eligible for private land mobile radio service regulation were used

to guide aggregations of the Census categories into representative user

classes of land mobile communication services. The results of the

cross-correlation are summarized here. Appendix B presents the complete

cross-correlation and a detailed analysis of the similarities and differences

between the two types of classification systems.

As shown in the first column of Table 2-4, the FCC defines four major

classifications of private land mobile radio service (i.e., Public Safety,

Special Emergency, Industrial, and Land Transportation), each of which

contains a number of sub-categories. As shown in the second column of Table

2-4, the FCC sub-categories encompass almost all of the Census commercial,

industrial, and governmental categories shown in Tables 2-1 and 2-2. Because

the FCC focuses on the application purpose of private land mobile radio in

defining user categories as opposed to the Census' emphasis on types of

Economic/government activity, a one-to-one correspondence does not exist

between the FCC and Census categories. In a number of cases, more than one

FCC sub-category represents the same Census category. However, the Census

categories are sufficient for distinguishing between the various eligible

categories of private land mobile radio service.

Table 2-3. Pleasure Boats in the United Statesa

State Number of Boats Registered

United States 9,165,094

California 605,387

Florida 526,495

New York 327,700

a Source: Department of Transportation, Boating

Statistics, 1983, U. S. Coast Guard, June 1984.

2-5
1

i

Table 2-4. FCC Private Land Mobile Radio Service Categories and SubCategories and Representative Census Standard Industrial

Classification (SIC) Categories and Sub- Categoriesa

FCC Private Land Mobile Radio Service Representative Census Categories

Categories and Sub-Categories and Sub-Categories

Public Safety:

• Local Government • Income Maintenance (G)

• Hospitals 6 Health (G)

• Highways (G)

• Other Transportation (G)

• Police and Fire Protection (G)

• Correction (G)

• Environment (G)

• Housing and Urban Renewal (G)

• Government Administration (G)

• Local Utilities (G)

- Transit (G)

• Other (G)

-------------------------------------------------------------------------------

• Police

• Police and Fire Protection (G)

• Fire

-------------------------------------------------------------------------------

• Highway Maintenance • Highways (G)

-------------------------------------------------------------------------------

• Forestry-Conservation • Environment (G)

Special Emergency:

• Medical Services • Hospitals b Health (G)

• Fire Protection (G)

• Services (C/I)

-------------------------------------------------------------------------------

• Rescue Organizations • Services (C/I)

--------------------------------------------------------------------------------

• Physically Handicapped N/A

--------------------------------------------------------------------------------

• Veterinarians • Agricultural Services (C/I)

• Services (C/I)

G = Census Government Employment Category.

C/I = Census Commercial/Industrial Employment Category.

N/A - Not addressed in this study.

aSource: See Tables 2-2 and B-1.

2-6
Table 2-4. FCC Private Land Mobile Radio Service Categories and SubCategories and Representative Census Standard Industrial

Classification (SIC) Categories and Sub-Categories (Cont'd)

FCC Private Land Mobile Radio Service Representative Census Categories

Categories and Sub-Categories and Sub-Categories

Special Emergency (Cont'd):

• Disaster Relief Organizations • Services (C/I)

• School Buses

-------------------------------------------------------------------------------

• Education Services (G)

• Transportation, Communications,

and Utilities (C/I)

• Beach Patrols

-------------------------------------------------------------------------------

• Environment (G)

• Establishment in Isolated Areas

-------------------------------------------------------------------------------

N/A

• Communication Standby Facilities

-------------------------------------------------------•------------------------

• Transportation, Communications,

and Utilities (C/I)

• Emergency Repair of Public

-------------------------------------------------------------------------------

• Transportation, Communications,

Communications and Utilities (C/I)

Industrial:

• Power • Local Utilities (G)

• Transportation, Communication,

and Utilities (C/I)

• Petroleum

-------------------------------------------------------------------------------

• Environment (G)

• Mining (C/I)

• Manufacturing (C/I)

• Transportation, Communications,

and Utilities (C/I)

• Motion Picture

-------------------------------------------------------------------------------

• Services (C/I)

• Relay Press

-------------------------------------------------------------------------------

• Manufacturing (C/I)

• Services (C/I)

G - Census Government Employment Category.

C/I - Census Commercial/Industrial Employment Category.

N/A - Not addressed in this study.

i

2-7 
Table 2-4. FCC Private Land Mobile Radio Service Categories and SubCategories and Representative Census Standard Industrial

Classification (SIC) Categories and Sub-Categories (Cont'd)

FCC Private Land Mobile Radio Service Representative Census Categories

Categories and Sub-Categories and Sub-Categories

Industrial (Cont'd):

^ r

• Special Industrial • Local Utilities (G)

• Agricultural Services (C/I)

• Mining (C/I)

• Contract Construction (C/I)

• Manufacturing (C/I)

• Transportation, Communications,

and Utilities (C/I)

• Wholesale Trade (C/I)

i • Retail Trade (C/I)

• Business

-' --------------------------------------------------------------------------------

• Wholesale Trade (C/I)

• Retail Trade (C/I)

• Finance, Insurance, and

Real Estate (C/I)

• Services (C/I)

• Manufacturing • Manufacturing (C/I)

• Telephone Maintenance • Transportaticn, Communications,

and Utilities (C/I)

Land Transportation:

Communications,

(C/I)

Communications,

(C/1)

/I)

• Motor Carrier • Transportation,

and Utilities

-------------------------------------------------------

• Railroad N/A

-------------------------------------------------------

• 'Taxicab • Transportation,

and Utilities

-------------------------------------------------------

• Automobile Emergency • Retail Trade (C

• Services (C/I)

G - Census Government Employment Category.

C/I = Census Commercial / Industrial Employment Category.

N/A - Not addressed in this study.

2-8
SECTION III

ANALYSIS OF SMSA VERSUS NON-SMSA COMMERCIAL/INDUSTRIAL ACTIV1T7

As discussed in Section I, SMSA and non-SMSA commercial/industrial

activity and characteristics (as measured by Census employment statistics)

were compared across ten major sectors of the economy. For the country as a

whole and individually for a sample of nine selected states, three types of

comparisons were made: (1) levels of employment, (2) sector shares of

employment, and (3) mixes of employment. The results of the analysis, as

discussed below, Jen.onstrate that potential non-SMSA user classes of

commercial/industrial land mobile communication services exist in significant

numbers and in substantially the same proportions and combinations as SMSA

user classes.

A. COMMERCIAL/INDUSTRIAL EMPLOYMENT LEVELS

The Census data confirm that non-SMSA areas have significant levels of the

commercial/industrial user classes that represent potential markets for land

mobile communication services. Specifically, as of 1981, 19.7% of the

nation's commercial/industrial activity was located outside SMSAs (see Table

3-1). Over 4.7 million people were employed by manufacturing firms located

outside SMSAs. Additionally, in excess of 8.5 million people were emploved by

firms located in non-SMSA areas and involved in transportation,

communications, utilities, wholesale trade, retail trade, finance, insurance,

real estate, and services.

While the proportion of non-SMSA commercial/industrial activity nationwide approaches 20%, the actual proportions for individual states vary widely.

For example, in Alaska, Iowa, Montana, and South Dakota (i.e., states with

large proportions of their population in non-SMSA areas), non-S^1SA areas

comprise between 44.2 and 90% of commercial/industrial employment; on the

other hand, the non-SMSA shares of California, Florida, New York, and

Pennsylvania range between 4.4 and 14.3%. While the relative proportions in

the latter four states seem small, the actual number of non-SMSA workerb in

these states approaches or exceeds the number -)f non-SMSA workers in the

states that have higher proportionate levels of non-SMSA employment (see Table

3-2). In other words, the data indicate that individual states either have

large proportions or large absolute numbers of potential non-SMSA

commercial/industrial users of land mobile communication services.

B. SHAKES OF COMMERCIAL./INDUSTRIAL EMPLOYMENT

Nationwide, non-SMSAs have potential commercial/industrial users of land

mobile communication services in each of the major sectors of the economy. As

shown in Table 3-1, the non-SMSA share of total national commercial/industrial

employment in the various categories ranges from 12.8% for "Finance,

Insurance, and Real Estate" to 59.1% for "Mining." While "Mining" is the only

sector of the economy where non-SMSA areas have the majority of employment,

"Agricultural Services, Forestry, Fisheries," "Mining," "Manufacturing,"

3-1
Ta?>le 3-1. SMSA Versus Non-SMSA Commercial/Industrial

Employment, United States, 1981a

Non-SMSA SMSA

Industry Total Number X Number X

Total 74,850,402 14,743,435 19.7 60,106,967 80.3

Agricultural Services, 302,694 92,309 30.5 210,385 69.5

Forestry, Fisheries

Mining 1,107,726 654,481 59.1 453,245 40.9

e

` Contract Construction 4,286,069 829,132 19.3 3,456,937 80.7

Manufacturing 20,428,330 4,793,239 23.5 15,635,091 76.5

Transportation, 4,613,030 767,561 16.6 3,845,469 83.4

Communications

and Utilities

,Y

1

Wholesale Trade 5,260,928 856,755 16.3 4,404,173 83.7

Retail Trade 15,390,998 3,517,154 22.9 11,873,844 77.1

E

Finance, Insurance, 5,409,780 689,921 12.8 4,719,859 87.2

and Real Estate

Services 17,814,081 2,748,068 15.4 15,066,013 84.6

Nonclassifiable 587,766 145,815 24.8 441,951 75.2

Establishments

'Source: Unpublished national aggregates of 1981 County Business

Patterns data. Data furnished by U.S. Bureau of the Census, County

Business Patterns Office, Telecon, February 1984.

"Retail Trade," and "Nonclassifiable Establishments" all have non-SMSA

employment levels equal to at least 30% of their SMSA counterparts. The

balance of sectors, "Transportation, Communications, and Utilities,"

"Wholesale Trade," "Finance, Insurance, and Real Estate," and "Services,"

individually comprise between 12.8 and 16.6% of non-SMSA employment.

3-2 
Table 3-2. Non-SMSA Commercial/Industrial Employment

Levels in Selected Statesa

Non-SMSA Employment

_ Percent of Total

State Number State Commercial/

Industrial Employment

Alaska 50,570 44.2

California 365,797 4.4

Florida 303,201 9.7

Iowa 417,448 47.5

Montana 185,249 90.0

New York 488,364 8.1

Oregon 247,682 30.3

Pennsylvania 571,063 14.3

South Dakota 98,885 57.9

aSource: Derived from data in County Business Patterns, 1981.

C. SMSA AND NON-SMSA EMPLOYMENT MIXES

The high degree of similarity between SMSA and non-SMSA commercial/

industrial activities becomes most apparent when the overall employment mixes

(i.e., the relative shares of employment in the various sectors) of the two

areas are compared. Both at the national and individual state level, non-SMSA

employment patterns closely resemble their SMSA counterparts. As shown in 

Table 3-3, a high and statistically significant degree of correlation exists

between SMSA and non-SMSA sector patterns of commercial/industrial

employment. In terms of the FCC categories discussed in Section II, this

relationship indicates that the non-SMSA and SMSA mixes of potential users of

land mobile communication services closely approximate each other. 

I. Natinnal-Level Comparison of Commercial/Industrial Activity Mixes

As mentioned above, at the national level the various sectors of

commercial/industrial activity have closely similar representation both inside

and outside SMSA areas. Figure 3-1 graphically depicts this similarity. The

vertical and horizontal axes represent the respective percentages of SMSA and

non-SMSA employment contained in each commercial/industrial sector. The

45-deg line highlights the points on the graph where the percentage of total

non-SMSA employment in a given commercial/industrial sector equals the

_-3
Table 3-3. Coefficients of Correlation between SMSA and Non-SMSA

Distributions (Mixes) of Industrial/Commercial Employment

State Correlation Coefficients

United States 0.94

Alaska 0.85

California 0.92

Florida 0.96

Iowa 0.98

Montana 0.93

New York 0.93

Oregon 0.96

Pennsylvania 0.95

South Dakota 0.97

a Significance Level: a < 0.01

percentage of total SMSA employment in the same sector. Notice that the

various points all cluster around the 45-deg line; this indicates the high

degree of similarity between SMSA and non-SMSA areas. As discussed in

sub-section III.C, "Retail Trade," "Manufacturing," and "Mining" all lie to

the right of the line, indicating that at the national level non-SMSA areas

are characterized by a higher relative share of employment in these sectors.

Similarly, "Finance, Insurance, and Real Estate" and "Services" lie to the

left of the line, indicating that SMSA areas comprise a somewhat larger

relative share of these sectors than non-SMSA areas. As Figure 3-1

demonstrates, however, none of these deviations are large enough to distort

the overall pattern of similarity in the composition of commercial/industrial

activity in non-SMSA and SMSA areas.

2. State-Level Comparison of Commercial/Industrial Activity Mixes

The individual state patterns of commercial/industrial activity

mirror the national pattern of similarity between SMSA and non-SMSA areas.

Moreover, the individual state patterns verify that this "similarity" has a

regional component. In other words, even though the relative share of total

state commercial/industrial employment in a particular sector varies from

state to state, proportionate SMSA and non-SMSA sector shares within

individual states are similar.

3-4
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For example, in South Dakota "Manufacturing" employment constitutes

approximately 15% of both SMSA and non-SMSA commercial/industrial activity

while nationwide "Manufacturing" accounts for over 25% of commercial/

industrial employment inside and outside SMSAs (see Table 3-4 and

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In summary, the analysis indicates that the overall composition of SMSA

and non-SMSA potential commercial/industrial user classes of land mobile

communication services as represented by employment data closely resemble each

other both nationally and at the regional level.
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SECTIOC IV

ANALYSIS OF SMSA VERSUS NUN-SMSA LOCAL GOVERNMENTAL ACTIVITY

Similar to the analysis of commercial/industrial activity presented in

Section III, three types of comparisons were made between SMSA and non-SMSA

local government activity: (1) levels of employment, (2) proportionate shares

of employment by type of activity, and (3) overall mix of employment. As

detailed below, the analysis indicates that even though distinct differences

exist between SMSA and non-SMSA local governments, non-SMSA areas still have

significant shares of the government user classes that represent potential

markets for land mobile communication services.

A. LEVELS OF LOCAL GOVERNMENT EMPLOYMENT

1. National Non-SMSA Levels of Local Government Employment

As shown in Table 4-1, non-SMSA local governments employ in excess of

two million people. This represents 26.8% of local government activity nationwide. In terms of the FCC sub-categories, non-SMSA areas have significant

employment levels in all local government sectors that represent the FCC's

user-specific classes of private land mobile radio. 4 For example, non-SMSA

areas have over 265,000 employees in the "Police and Fire Protection," "Transportation," and "Environment" sectors combined -- the employment sectors that

correspond to the FCC "Public Safety" sub-categories of "Police," "Fire,"

"Highway Maintenance," and "Forestry Conservation" (see Table 4-1). The nonSMSA portion of the "Health and Hospitals" sector, which functionally coincides

with the FCC "Special Emergency - Medical Services" sub-category, employs over

200,000 people. The Census' "Education" category (the category most pertinent

to the FCC's "Special Emergency - School Buses" sub-category) composes the

single largest sector in non-SMSA areas with over 1.2 million employees.

2. Levels of Government Employment in Individual States

Similar to the pattern for commercial/industrial employment, the

non-SMSA proportions of local government employment for individual states vary

widely from the overall national share. For example, in states with large

non-SMSA populations such as Alaska, Iowa, Montana, and South Dakota, non-SMSA

areas constitute between 56.6 and 87.4% of state local government employment

(see Table 4-2). On the other hand, in states such as California and New

York, where the vast majority of the population lives inside SMSAs, between 8

and 11% of local government employment is located in non-SMSA areas; however,

in both of these states (as is the case with commercial/industrial employment)

a relatively large number of people work for non-SMSA local governments --

almost 70,000 in California and over 80,000 in New York (see Table 4-2).

4As discussed in Section II, the user-specific sub-categories include

"Public Safety - Police, Fire, Highway Maintenance, and Forestry," "Special

Emergency - Medical Services, School Buses, and Beach Patrol," and

"Industrial - Power, Petroleum, and Special Industrial."

4-1
Table 4-1. SMSA Versus Non-SMSA Local Government

Employment, United States, 1977a

Non-SMSA SMSA

Local Government Sector Total Number X Number %

Total 7,687,815 2,058,478 26.8 5,629,337 73.2

Education 4,193,884 1,231,211 29.4 2,962,673 70.6

Hospitals and Health 625,274 207,805 33.2 417,469 66.8

Income Maintenance 191,472 39,740 20.8 151,732 79.2

Highways 290,295 112,995 38.9 177,300 61.1

Other Transportation 25,891 2,411 9.3 23,480 90.7

Police and Fire Protection 710,991 127,289 17.9 583,702 82.1

Correction 82,777 12,566 15.2 70,211 84.8

Environment 184,782 27,917 15.1 156,865 84.9

Housing and Urban Renewal 290,343 48,982 16.9 241,361 83.1

Government Administration 436,084 127,200 29.2 308,884 70.8

Local Utilities 183,889 47,968 26.1 135,929 73.9

Transit 125,954 1,575 1.3 124,379 98.7

Other 346,179 70,827 20.5 275,352 79.5

'Source: Derived from data presented in Table 13 of _Census of

Governments - Compendium of Public Employment, 1977.

Table 4-2. Non-SMSA Local Government Employment

Levels in Selected States, 1977a

Non-SMSA Employment

Percent of State's

Number of People Total Local

State Employed Government Employment

Alaska 7,807 56.6

California 68,453 8.0

Florida 61,655 18.6

Iowa 64,316 63.7

Montana 21,186 77.8

New York 81,575 11.3

Oregon 36,032 42.3

Pennsylvania 58,260 16.8

South Dakota 19,484 87.4

'Source: Table 13, Census of Governments - Compendium of Public

Employment, 1977.

4-2
i

i

3. Sectors of State Government Inadequately Represented by Local

Government Data

Even though local governments (which constitute 72.6% of

non-federal government activity) represent a good general indicator of

government activity, they do not adequately represent some state government

user-specific classes of private land mobile radio. Specifically, as shown in

Table 4-3, state government composes nearly 50% or more of the employment

in each of five sectors: "Income Maintenance," "Correction," "Hospitals and

Health," "Highways," and "Environment." The latter three coincide with three

user-specific FCC sub-categories (i.e., "Special Emergency - Medical

Services," "Public Safety - Highway Maintenance," and "Public Safety -

Forestry Conservation") and, as discussed below, represent relatively large

non-SMSA user classes of land mobile communication services.

B. SECTOR SHARES OF GOVERNMENTAL EMPLOYMENT

Non-SMSA areas contain between 15.1 and 38.9% of the total national

employment in the local government sectors representative of the FCC's

user-specific sub-categories. The six sectors that represent these

sub-categories contain as a whole a greater share of non-SMSA employment than

SMSA employment (see Table 4-41. The remaining seven sectors (representing

21.3 and 14.7% of SMSA and non-SMSA local government employment, respectively)

correspond to the FCC's non-user-specific "Public Safety - Local Government"

sub-category. In most of these seven sectors, the non-SMSA proportionate

share of employment differs from the SMSA proportionate share of employment by

more than 30% (see Table 4-4).

I. Individual Sector Comparisons of SMSA and Non-SMSA Local Government

Employment

As detailed in Appendix E and indicated in Table 4-4, non-SMSAs

compared nationwide to SMSAs have a greater share of their total local

government employment in the "Hospitals and Health," "Highways," and

"Government Administration" sectors and "Natural Resources" component of the

"Environment" sector. Conversely, non-SMSAs compared to SMSAs also have a

smaller share of their employment in the "Police and Fire," "Other

Transportation;'"Corrections," "Housing and Urban Renewal," and "Transit"

sectors and the "Local Parks and Recreation" component of the "Environment"

sector. Both these trends are also apparent at the individual state level

(see Appendix E). In terms of the user-specific FCC categories, these

findings indicate that non-SMSAs compared to SMSAs have relatively larger

"Public Safety - Highway Maintenance and Forestry," "Special Emergency -

Medical Services" and relatively smaller "Public Safety - Police and Fire"

local government user classes of land mobile communication services.

Also, because state governments tend only to maintain roads outside

incorporated municipalities (Reference 2) and have all of their "Environment"

sector employment involved in "Natural Resources" (see Tables E-3 and E-4 in

Appendix E), it is likely that the non-SMSA "Public Safety - Highways and

4-3
C

t

s

Table 4-3. State Government Employment, 1977a

State Government

Employment

Percent of

Total State Total State

and Local Number and Local

Government of Government

Government Sector Employment Employees Employment

Total 10,591,111 2,903,296 27.4

Education 5,198,977 1,005,093 19.3

Hospitals and Health 1,238,777 613,503 49.5

Income Maintenance 464,042 272,570 58.7

Highways 548,177 257,882 47.0

Other Transportation 31,654 5,763 18.2

Police and Fire Protection 780,673 69,682 8.9

Correction 216,826 134,049 61.8

Environment 337,208 152,426 45.2

Housing and Urban Renewal 290,343 0 0

Government Administration 631,262 195,178 30.9

Local Utilities 183,889 0 0

Transit 125,954 0 0

Other 543,329 197,150 36.3

a Source: Table 13, Census of Governments - Compendium of Public

Employment, 1977.

Environment" user classes may be substantially larger, in absolute terms, than

their same SMSA counterparts.

C. SMSA AND NON-SMSA GOVERNMENT EMPLOYMENT MIXES

While the relative sectoral employment levels in SMSA and non-SMSA areas

differ more for local government activity than for commercial/industrial

activity, a significant degree of similarity still exists between the two

areas. Moreover, non-SMSA local governments overall have a larger proportion

of their employment in user-specific FCC categories than SMSA and local

governments.

I. National-Level Comparison of Governmental Activity Mixes

At the national level, the overall patterns of local government

activity in SMSA and non-SMSA areas resemble each other. As shown in Figure

4-1 5 the various points representing local government sectors all lie in the

5The same type of 45-deg line analysis used for commercial/industrial

activity is appl:ed in Figure 4-1. (A description of this analysis is given

in Part C of Section III.)

4-4
Table 4-4. Proportionate SMSA and Non-SMSA Shares of Local

Government Employment, United States, 1977a

k

Percent of Local Government Employment

Employment Sector SMSA Areas b

Non-SMSA Areas

Sectors Representative of UserSpecific c FCC Sub-Categories:

Education 52.6 59.8

Hospitals and Health 7.4 10.1

Highways 3.1 5.5

Police and Fire Protection 10.4 6.2

Environment

• Natural Resources 0.3 0.5

• Local Parks and Recreation 2.5 0.9

Local Utilities 2.4 2.3

#

# Subtotal 78.7 85.3

Sectors Not Representative of UserSpecific FCC Sub-Categories:

Income Maintenance 2.7 1.9

Other Transportation 0.4 0.1

Correction 1.2 0.6

Housing and Urban Renewal 4.3 2.4

Government Administration 5.5 6.2

Transit 2.2 0.1

Other 4.9 3.4

Subtotal 21.2 14.7

a Source: Derived from data in Table 13, Census of Governments - Compendium

of Public Employment, 1977.

bSMSA sub-totals do not add to 100 because of rounding error.

c The user-specific FCC sub-categories include: "Public Safety - Police,

Fire, Highway Maintenance, and Forestry," "Special Emergency - Medical

Services, School Buses, and Beach Patrol," and "Industrial - Power,

Petroleum, and Special Industrial."

4-5 
o. 

CORRELATION OF SMSA AND

NON-SMSA NON-EDUCATION

LOCAL GOVERNMENT

EMPLOYMENT MIXES: 0.79

LEVEL OF SIGNIFICANCE:

a<0.01

•

POLICE & FIRE PROTECTION

haj • HOSPITALS & HEALTH

OTHER • GOVERNMENT ADMINISTRATION

•

HOUSING & URBAN RENEWAL

NATURAL RESOURCES

• HIGHWAYS

NSIT INCOME MAINTENANCE

LOCAL UTILITIES

CORRECTIONS

OTHER TRANSPORTATION

't

^S

F .

f

C t

15

14

13

p 12

11

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1 10

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W 9

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7

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5

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U_

O 3

ZW

U 2

ccWd

1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

PERCENT OF TOTAL NON-SMSA LOCAL GOVERNMENT EMPLOYMENT

Figure 4-1. Percentage Mix of SMSA versus Non- SMSA Local

Government Employment, United States, 1977

4-6
vicinity of the 45-deg line. As indicated in Table 4-5, the 0.79 correlation coefficient of this scattering of points is statistically significant and

indicates that a relatively strong degree of similarity exists between SMSA

and non-SMSA areas for the nation as a whole. (The "Education" sector was not

included in the correlation calculation because this sector's large size

relative to the other sectors causes the coefficient to overstate the ey.tent

of similarity between SMSA and non-SMSA areas.)

2. State-Level Comparison of Governmental Activity Mixes

The nine states that were analyzed exhibit widely varying degrees of

similarity between the composition of their SMSA and non-SMSA local government

activities. For example, as indicated in Table 4-5, the employment wixes of

SMSA and non-SMSA areas in both Celifornia and Florida evince a higher degree

of similarity than the nation as a whole; on the other hand, SMSA and non-SMSA

areas in New York, Oregon, Iowa, and South Dakota all show lower degrees of

similarity.6

In Oregon, Iowa, and South Dakota, the proportionately higher levels of

"Highways" and "Hospitals" employment and proportionately lower levels of

"Police and Fire" employment in non-SMSA areas relative to SMSA areas account

for almost all of the disparity between the two areas in terms of the userspecific FCC categories. The same holds true in New York except that the

"Hospitals" sector constitutes a larger proportionate share of SMSA employment

compared to non-SMSA employment.

SMSA and non-SMSA areas in Montana and PennsylvaiA a exhibit patterns of

similarity comparable to the nation as a whole. However, Alaska is unique in

that all of its user-specific user classes, as represented by the Census

categories, compose a significantly greater proportionate share of non-SMSA

employment than SMSA employment.

In summary, even though the employment composition of SMSA and non-SMSA

areas varies widely across the nine states, the overall mix of non-SMSA

employment at both the national and individual state level still represents a

high level of potential land mobile communication services users. In seven of

the nine states analyzed, non-SMSA areas compared to SMSA areas have a larger

proportion of their employment in the sectors other than education that

represent FCC user-specific sub-categories (see Table 4-6). Moreover, 63% of

non-education local government empluyment nationwide exists in sectors

representative of the FCC user-specific user classes; the comparative

proportion of 55% for SMSA areas is less (see Table 4-6).

6Appendix F graphically portrays the relationship between SMSA and non-SMSA

mixes of local government activity for each of the states analyzed.

4-7
Table 4-5. Coefficients of Correlation Between SMSA and Non-SMbA

Compositions (Mixes) c: Local Government Employments

Correlation Significance

State Coefficient Level

United States 0.79 a < 0.01

Alaska 0.85 a < 0.01

California 0.90 a < 0.01

Florida 0.90 a < 0.01

lows 0.51 0.05 < a < 0.10

Montana 0.79 a < 0.01

New York 0.44 a > 0.10

Oregon 0.62 0.02 < a < 0.05

Pennsylvania 0.71 a < 0.01

South Dakota 0.61 0.02 < a < 0.05

& The "education" sector was not included in the correlation

calculation because this sector's large size relative to

the other sectors causes the coefficient to overstate the

extent of similarity between SMSA and non-SMSA areas.

The coefficients were calculated from the data in Table E-2.

4-8
:i

Table 4- 6. Proportion of SMSA and Non-SMSA Non-Education Local

Government Employment in Sectors Representing UserSpecific FCC Categories, 1977a

Proportion of SMSA and Non-SMSA NonEducation, Local Government Employment

in Sectors Representing User-Specific

FCC Categories

State SMSA Non-SMSA

United States 0.55 0.63

Alaska 0 .35 0.53

California 0.54 0.57

Florida 0.61 0.66

Iowa 0 . 54 0.69

Montana 0 . 60 0.56

New York 0 . 48 0.50

Oregon 0 .50 0.64

Pennsylvania 0.42 0.33

South Dakota 0 .64 0.61

aThe sectors that represent user- specific categories include

"Hospitals;"' Highways," " Police and Fire," "Environment" and "Local

Utilities."

Source: Derived from data in Table E-2.

4-9
SECTION V

REFERENCES

1. U.S. Department of Commerce - Bureau of the Census, County Business

Patterns 1981: United States, July 1983, CBP-81-1.

2. Bonifant, Bern M., Employment Branch, Governments Division, Bureau of the

Census, U.S. Department of Commerce (letter communication, July 25,

1984--see Appendix W.

3. U.S. Department of Labor - Bureau of Labor Statistics, "Employment and

Earnings," Monthly Survey, January 1984.

4. U.S. Department of Commerce - Bureau of the Census, Compendium of Public

Employment, 1977 Census of Governments, Volume 3 - Public Employment,

Number 2, July 1979, GC77(3)-2.

5. Wellis, Thomas, Chief of Regulations and Rulings for Merchant Vessels, 

Documentation Division, U.S. Coast Guard, (Telecon, January 9, 1985).

5-1
SECTION VI

BIBLIOGRAPHY

Federal Communications Commission, Rules and Regulations, "Part 90: Private

Land Mobile Radio Services," March 1979.

U.S. Department of Commerce - Bureau of the Census, County Business Patterns

1981: Alaska, July 1983, CBP-81-3.

U.S. Department of Commerce - Bureau of the Census, County Business Patterns

1981: California, July 1983, CBP-81-6.

U.S. Department of Commerce - Bureau of the Census, County Business Patterns

1981: Florida, July 1983, CBP-81-11.

U.S. Department of Commerce - Bureau of the Census, County Business Patterns

1981: Iowa, July 1983, CBP -81-17.

U.S. Department of Commerce - Bureau of the Census, County Business Patterns

1981: Montana, July 1983, CBP-81-28.

U.S. Department of Commerce - Bureau of the Census, County Business Patterns

1981: New York, July 1983, CBP-81-34.

U.S. Department of Commerce - Bureau of the Census, County Business Patterns

1981: Oregca, July 1983, CBP-81-39.

U.S. Department of Commerce - Bureau of the Census, County Business Patterns

1981: Pe: ► nsylvania, July 1983, CBP-81-40.

U.S. Department of Commerce - Bureau of the Census, County Business Patterns

1981: South Dakota, July 1983, CBP-81-43.

U.S. Department of Labor - Bureau of Labor Statistics, Bulletin 2161,

"Measuring Productijity in State and Local Government," December 1983.

U.S. Department of Transportation - U.S. Coast Guard, Boating Statistics, 1983.

6-1
>- .4.1

APPENDIX A

DEFINITION Ot STANDARD METROPOLITAN STATISTICAL AREAS (SMSAs)
APPENDIX A

DEFINITION OF STANDARD METROPOLITAN STATISTICAL. AREAS (SMSAs)

Standard Metropolitan Statistical Areas (SMSAs) are designated by the U.S.

Office of Management and Budget with the advice of the Federal Committee on

Standard Metropolitan Statistical Areas. Each SMSA consists of a single

county area or a group of contiguous county areas, except that in New England

such an area consists of a group of contiguous cities and towns. Each SMSA

includes at least one "central city" of at least 50,000 inhabitants, or a city

with at least 25,000 inhabitants, which, together with those contiguous places

having population densities of at least 1000 persons per square mile, has a

combined population of 50,000 or more and constitutes for general economic and

social purposes a single community, provided that the county or counties in

which the city and contiguous places are located has a total population of at

least 75,000.1

"There were 272 SMSAs in the 50 States and the District of Columbia at the

time of the 1977 Census of Governments." (Appendix A, p. 4b0, Compendium of

Public Employment, Bureau of the Census, 1977.) Two states, Vermont and

Wyoming, do not contain any SMSAs.

In 1981, the U.S. Office of Management and Budget designated 36 new

SMSAs. However, because the available national aggregates for SMSA and

non-SMSA commercial/industrial employment (contained in County Business

Patterns -- the data base used for this study) were based on the pre-1981 SMSA

designations, the analysis presented in this study is based on the pre-1981

SMSA designations.

In 1983, the Office of Management and Budget shortened the "SMSA" name to

"MSA" (i.e., Metropolitan Statistical Area). This name change was not

accompanied by any significant changes in the criteria used to designate

metropolitan areas.

1 For a detailed description of criteria used to define SMSAs, see Standard

Metropolitan Statistical Areas, 1975, U.S. Office of Management and Budget.

UKAMIG EWZ BLANK NM FRUE

A-3

D
APPENDIX B

CA-BASE DESCRIPTION
APPENDIX B

DATA-BASE DESCRIPTION

A. CROSS-CORRELATION OF FCC AND U.S. BUREAU OF THE CENSUS CATEGORIES

The FCC has promulgated rules under Title II of the Communications Act of

1934 that define categories of non-federal government activities that may

obtain licenses for and use radio communication systems in the private land

mobile radio service frequencies ( FCC, March 1979). While these categories

encompass most all commercial, industrial, and governmental activities (and

therefore are relevant to aggregating Census data into categories of land

mobile communication services users), they do not correspond directly with the

U.S. Bureau of the Census Standard Industrial Classification ( SIC) system for

categorizing economic and governmental activity. Therefore, the FCC

categories were cross -matched with the Census SIC categories (1) to establish

whether the Census classification system encompassed the relevant FCC

categories and (2) to provide a framework for comparing the characteristics of

SMSA and non- SMSA land mobile communication services user classes.

As a first step in assessing the compatibility of FCC and Census

categories, the FCC eligible radio service categories and sub -categories were

cross -matched with Census SIC categories and sub- categories as shown in Table

B-1. The first column in Table B- 1 lists the four FCC Private Land Mobile

Radio Service categories and their constituent sub-categories. The second

column shows the specific Census SIC categories and sub-categories that

encompass each FCC sub-category. The third column shows the categories and

sub-categories that were selected from published Census data bases for this

analysis.

The FCC defines four major types of private land mobile radio services:

Public Safety, Special Emergency, Industrial, and Land Transportation. The

Census, on the other hand, has eleven major SIC categories that represent the

major economic divisions of the economy: Agriculture; Forestry and Fisheries;

Mining; Construction; Manufacturing; Transportation; Communications and Public

Utilities; Wholesale Trade; Retail Trade; Finance, Insurance, and Real Estate;

Services; and Public Administration.

1. Differences in FCC and Census Category Definitions

Because the FCC focuses on the application purpose of private land

mobile radio services in defining user categories, as opposed to the Census'

emphasis on types of economic/government activity, a one - to-one correspondence

does not exist between the FCC and Census categories. While the FCC

categories as a whole encompass all of the Census commercial, industrial and

non-federal governmental categories, the individual FCC categories and their

associated sub-categories, as demonstrated in Table B- 1, in many cases cover

only part of one or a number of major Census categories. Also, while all the

Census SIC sub-categories are mutually exclusive, some of the FCC subcategories overlap. For example, as indicated in Table B - 1, a local fire

department that pro1•4 - , a paramedical services would be classified by the

Census as "State and Local Government Public Safety - Fire Protection" (SIC

E

B-3 J'.^t@C Ri>1J^'(; J'.AGF

N0T rTf;l,
9224), but it could presumably petition the FCC for a license under any one of

three sub-categories: "Public Safety - Local Government," "Public Safety -

Fire," or "Special Emergency - Medical Services." Similarly, local

government-operated utilities would likely be eligible under both the "Public

Safety - Local Government" and "Industrial - Power" sub-categories; however,

the Census would use the same SIC sub-category (SIC 49 - Electric, Gas and

Sanitary Services) for this activity irrespective of whether local utilities

were provided privately or by government.

The level of aggregation also varies between the FCC and Census category

definitions. As shown in the left-hand column of Table B-1, two of the four

FCC categories, i.e., "Public Safety" and "Special Emergency," primarily

represent government-provided services; only one of the eleven major Census

categories, i.e., Public Administration, focuses exclusively on government

services. l Also, while the Census separates non-transportation

commercial/industrial activities into nine major categories, the FCC collects

all these activities except for emergency repair of public communications

under one major category -- "Industrial." Again, these differences between

the two classification systems simply reflect the different focus of the two

agencies.

2. Selection of Census Categories for Comparing Land Mobile

Communication Services User Classes in SMSA Versus Non-SMSA Areas

Because the focus of this study is to compare SMSA and non-SMSA user

classes of land mobile communication services based on commercial/ industrial

and governmental activity, two major Census data bases that provide

location-referenced information, County Business Patterns and the Compendium

of Government Employment, were selected as the basis for the analysis.

(Section II.A of this report describes these data bases, their advantages, and

their limitations.) Even though the FCC and SIC categories differ as

described above, the major breakdowns of commercial, industrial, and

governmental activity in these data bases are sufficient for distinguishing

between the various user types of land mobile communication services. As

shown in the third column of Table B-1, the major SIC categories for

commercial/industrial activities and the selected aggregations of government

activity sub-categories are representative of the FCC categories. Most of the

Census categories appear repeatedly in the third column of the table because

of the overlapping nature of the FCC categories and/or the inclusion of more

than one FCC sub-category within the same Census SIC category.

a. Public Safety. The categories contained in the Census'

Compendium of Public Employment cover the entire range of potential "Public

Safety" private land mobile radio services. As shown in Table B-1, the

relevant categories and aggregations of sub-categories represent the five

radio service sub-categories. The "Local Government" sub-category encompasses

?While the Census uses the same SIC categories for classifying services

provided by both local governments and the private sector (e.g., hospitals,

utilities), it publishes separate location-referenced aggregations of

commercial/industrial and governmental activities.

[I

B-4
the entire range of government activities, while the "Police," "Fire,"

"Highway Maintenance," and "Forestry-Conservation" sub-categories correspond

to aggregations of individual Census government sub-categories.

b. Special Emergency. The Census categories represent most all

of the activities represented by the "Special Emergency" radio service

categories. Neither of the selected Census data bases identify the level or

location of handicapped individuals or isolated establishments. However, by

definition, the vast majority of potential users eligible as "Establishments

in Isolated Areas" will exist outside SMSAs. As indicated in Table B-1,

"Special Emergency" corresponds to a mix of government and

commercial/industrial Census categories.

C. Industrial. Similar to the "Special Emergency" category, the

"Industrial" category coincides with a combination of Census government and

commercial/industrial categories. The "Power," "Petroleum," and "Special

Industrial" sub-categories include activities performed by both government and

industry, while the "Motion Picture," "Relay Press," "Business," "Manufacturing," and "Telephone Maintenance" sub-categories represent

commercial/industrial activities only. As indicated in Table B-1, the

selected Census data bases fully cover all these activities.

d. Land Transportation. All activities eligible for the "Land

Transportation" radio service except "Railroad" are covered by the

"Transportation, Communications and Utilities" and "Services" categories

contained in County Business Patterns.

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APPENDIX C

COMPARISON OF SMSA AND NUN-SMSA INDIVIDUAL.

COMMERCIAL/INDUSTRIAL SECTORS
APPENDIX C

F SMSA AND NON-SMSA INDIVIDUAL

LCIAL./INDUSTRIAL SECTORS

The analysis of employment in the individual SIC categories at the state

level indicates that in the majority of cases the proportions of overall SMSA

and non-SMSA activity in a given sector are similar. At a detailed level, the

individual sectors can be classified in one of four ways: (1) the sector's

proportionate shares of SMSA and non-SMSA employment vary without any clearly

definable pattern; (2) the sector's proportionate SMSA and non-SMSA shares are

clearly similar; (3) the sector's proportionate share of non-SMSA employment

is consistently higher than its SMSA counterpart; or (4) the sector's

proportionate share of non-SMSA employment is consistently lowei than its SMSA

counterpart.

A. SECTORS LACKING DISTINCT SMSA VS. NON-SMSA PATTERNS OF VARIANCE

As shown in Figures C-1, C-2, and C-3, the share of employment in "Agricultural Services," "Wholesale Trade," and "Nonclassifiable Establishments" do

not exhibit any consistent pattern across the various states that were

analyzed. l However, based on a statistical analysis of variance (see Table

C-1), the exhibited differences do not provide sufficient basis for concluding

► . that any of these three sectors comprise a significantly larger or smaller

proportion of overall employment in either SMSA or non-SMSA areas. Moreover,

at the national level, as indicated in Table C-2, these three sectors compose

substantially similar proportions of overall SMSA and non-SMSA employment.

Therefore, from a nationwide point of view, potential land mobile communication services user classes from the "Agricultural Services," "Wholesale

Trade," and "Nonclassifiable Establishments" sectors (eligible for "Industrial

- Special Industrial" and "Industrial - Business" private land mobile radio

service) exist in relatively constant proportions both inside and outside

SMSAs.

B. SECTORS WITH SIMILAR SMSA AND "SON-SMSA SHARES OF COMMERCIAL/INDUSTRIAL

EMPLOYMENT.

Both SMSA and non-SMSA areas of the states analyzed have substantially

similar proportions of commercial/industrial employment in the "Transportation,

Communications, and Utilities," "Contract Construction," and "Manufacturing"

sectors.

As shown in Figure C-4, the proportions of SMSA and non-SMSA people

employed in the "Transportation, Communications, and Utilities" sector are

nearly equivalent in six of the nine states. Nationwide, 6.4% of SMSA and

5.1% of non-SMSA commercial/industrial employment exists in this sector.

I Table C-2 was the source of data `or Figures C-1 to C-9.

f C-3 PUAGWINQ PAGE BLAN[ NaT >!IF.w
C-4

For "Contract Construction," eight of the nine states have SMSA and

non-SMSA shares of employment within two percentage points of each other. For

the country as a whole, this sector comprises 5.8 and 5.6% of commercial/

industrial employment in SMSA and non-SMSA areas, respectively (see

Figure C-5).

Even though the non-SMSA proportionate share of "Manufacturing" employment

is larger than the SMSA share in seven of the nine states analyzed (see Figure

C-6) the difference is not sufficient to conclude that non-SMSA areas have a

statistically significant greater relative proportion of "Manufacturing"

employment (see Table C -0; however, nationwide (as noted above), non-SMSA

areas have slightly more of their commercial/industrial employment in

"Manufacturing" than SMSA areas.

Therefore, in terms of the FCC categories presented in Table B-1, non-SMSA

and SMSA areas have similar proportions of the prospective land mobile

communication services user classes that totally or partly constitute the

following sub-categories: "Communications Standby Facilities," "Emergency

Repair of Public Communications," "Manufacturing," "Telephone Maintenance,"

"Motor Carrier," "Taxicab," "School Buses," "Power," "Petroleum," "Relay

Press," and "Special Industrial" sub-categories.

C. SECTORS CONSTITUTING A GREATER PROPORTION OF NON-SMSA EMPLOYMENT THAN SMSA

EMPLOYMENT

Non-SMSA areas typically have a greater proportion of their overall

employment in the "Retail Trade" and "Mining" sectors than SMSA areas. This

relationship exists in the majority of states analyzed and for the country as

a whole.

As shown in Figure C-7, non-SMSA areas in seven of the nine states that

were analyzed have a greater proportionate share of their employment in the

"Retail Trade" sector than their SMSA counterpart areas. Only Montana has a

significantly greater proportion of employment in this sector in SMSA areas,

while Alaska has virtually identical shares in both types of areas. Nationwide, "Retail Trade" constitutes 24% of non-SMSA employment and 20% of SMSA

employment.

Non-SMSA areas also have a higher proportion of their overall employment

in "Mining" than SMSA areas. As indicated in Figure C-8, the non-SMSA

proportion of overall employment in "Mining" exceeds the SMSA proportion in

all of the nine states that were analyzed. Nationwide, "Mining" constitutes

4.4% of non-SMSA employment and 0.8% of SMSA employment.

t

In terms of the FCC categories, the different SMSA and non-SMSA employment

proportionate levels of activity in "Retail Trade" and "Mining" are not large

enough to significantly impact the overall proportions of SMSA and non-SMSA

potential users satisfying the FCC's definitions of "Business," "Petroleum,"

or "Special Industrial" activities.
D. SECTORS CONSTITUTING A SMALLER PROPORTION OF NON-SMSA EMPLOYMENT THAN SMSA

EMPLOYMENT

SMSAs have a greater proportion of their overall employment in the

"Services" and "Finance, Insurance, and Real Estate" sectors than non-SMSA

areas. This relationship exists both nationwide and in all nine states that

were evaluated ( see Figures C-9 and C-10).

Non-SMSA areas, on a national scale, have 27 % less "Services" sector

activity than SMSA areas. However, this sector still constitutes 18.2% of

non-SMSA employment. Moreover, in states such as Montana and South Dakota,

where more than half of commercial/industrial activity occurs outside SMSAs,

non-SMSA areas ( as shown in Figure C -8) have only marginally less "Services"

activity than SMSA areas.

"Finance, Insurance, and Real Estate" is the only sector of the economy in

which non-SMSA areas have a significantly smaller share of commercial/

industrial activity than SMSA areas. On a national scale, non-SMSA workers in

this sector still constitute 4.7% of non-SMSA employment as compared to SMSA 's

' 7.9% share. However, unlike the "Manufacturing," "Retail Trade," and

"Services" sectors, the "Finance, Insurance, and Real Estate" sector is not

j one of the nation's largest sectors (i.e., overall it constitutes 7% of

employment); therefore, the difference in shares between SMSA and non-SMSA

areas does not indicate a significant difference in SMSA and non-SMSA

employment characteristics.

Overall, the differences between SMSA and non-SMSA activity in the

"Services" and "Finance, Insurance and Real Estate" sectors, from the

viewpoint of the FCC "Industrial - Business" category (i.e., the category that

entirely encompasses these two Census categories), imply less than a ten

percentage point difference in SMSA and non-SMSA proportionate levels of

potential land mobile communication services users.

C-5
3

?,4

w 

ORtWAL

OF POUR QUAL1 iM

1.8

PROPORTION OF

TOTAL EMPLOYMENT

1.2

q SMSA

.b

n NON-SMSA

9

RL CA FL 10 MO NY OR PE SD

STATE

Figure C-1. SMSA versus Non-SMSA Employment -

Agricultural Services, 1981

11

9

PROPORTION OF

TOTAL EMPLOYMENT

4

q SMSR

c

n NON-SMSA

IL CA FL 10 MO NY OR PE SD

STATE

SMSA versus Non-SMSA Employment -

Wholesale Trade, 1981

C-6

i i r,di'•.,^ ^l 
6

4.8 ORKYNAL Fiv'_Sc '.r.

OF POOR Q JS"%L r'^

3.6

PROPORTION OF

TOTAL EMPLOYMENT

2.4

q SMSR

1.2

NON-SMSR

AL CA FL 10 MO MY OR PE SD

STATE

Figure C-3. SMSA versus Non-SMSA Employment -

Nonclassifiable Establishments, 1981

15

PROPORTION OF

TOTAL EMPLOYMENT

6

q SMSA

3

n NON-SMSA

AL CR FL IO MO NY OR PE SD

STATE

Figure C-4. SMSA versus Non-SMSA Employment -

Transportation 6 Utilities, 1981

12

9
i

.I

9

7

PROPORTION OF

TOTAL EMPLOYMENT

4

q SMSA

2

NON-SMSR

RL CA FL 10 MO NY OR PE SD

STATE

Figure C-5. SMSA versus Non-SMSA Employment -

Contract Construction, 1981

44

32

1- 24

PROPORTION OF

TOTAL EMPLOYMENT

16

q SMSA

8

NON-SMSA

RL CA FL 10 MO NY OR PE SD

STATE

Figure C-6. SMSA versus Non-SMSA Employment -

Manufacturing, 1981

C-8
29

23

17

PROPORTION OF

TOTAL EMPLOYMENT

12

q SMSR

6

NON-SMSA

RL CA FL IO MO NY OR PE SD

STATE

Figure C-7. SMSA versus Non-SMSA Employment -

Retail Trade, 1981

11

9

PROPORTION OF

TOTAL EMPLOYMENT

4

q SMSR

2

MON-SMSA

RL CA FL IO MO NY OR PE SD

STATE

Figure C-8. SMSA versus Non-SMSA Employment -

Mining, 1981

C-9

7
i

30

24

16

PROPORTION OF

TOTAL EMPLOYMENT

12

q SMSR

6

NON-SMSR

0

AL CA FL 10 MO NY OR PE SD

STATE

Figure C-9. SMSA versus Non-SMSA Employment -

Services, 1981

12

10

7

PROPORTION OF

TOTAL EMPLOYMENT

5

q SMSA

2

NON-SMSA

RL CA FL 10 MO NY OR PE SD

STATE

Figure C-10. SMSA versus Non-SMSA Employment -

Finance, Real Estate, b Insurance, 1981

C-10

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- r.

APPENDIX D

STATE-LEVEL COMPARISONS OF SMSA AND NON-SMSA

COMMERCIAL/INDUSTRIAL ACTIVITY MIXES
APPENDIX D

STATE-LEVEL COMPARISONS OF SMSA AND NUN-SMSA

COMMERCIAL/INDUSTRIAL ACTIVITY MIXES

The graphs in this appendix depict the relationship between SMSA and nonSMSA mixes of commercial/industrial activity in Alaska, California, Florida,

Iowa, Montana, New York, Oregon, Pennsylvania, and South Dakota.

:r The vertical and horizontal axes in Figures D-1 to D-9 represent the

respective percentages of SMSA and non-SMSA employment contained in each

commercial/industrial sector. The 45-deg line in each figure highlights the

points on the graph where the percentage of total non-SMSA employment in a

given commercial/industrial sector equals the percentage of total SMSA

employment in the same sector.

PRECEDING FAGS BCANC NOT rMMMM)

D-3

i

a^

E
30

Z 28

26

OJ

24

W

J

Q 22

oc

20

0

? 18

Q

u 16 cc

14

O

u 12 Q

10

J

H

O 8

O 6

W 4 u

W

a 2

2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

PERCENT OF TOTAL NON-SMSA COMMERCIAVINDUSTRIAL EMPLOYMENT

Figure D-1. Percentage Mix of SMSA versus Non-SMSA Commercial/

Industrial Employment, Alaska, 1981

D-4

CORRELATION OF SMSA AND

NON-SMSA COMMERCIAVINDUSTRIAL SERVICES EMPLOYMENT MIXES: 0.85

LEVEL OF SIGNI F ICANCE:

a<0.01

RETAIL TRADE

TRANSPORTATION & 0

PUBLIC UTILITIES

CONTRACT CONSTRUCTION

oe?F INSURANCE, & REAL ESTATE

WHOLESALE TRADE

• MINING

1 1 • MANUFACTURING

AGRICULTURAL SERVICES

.NONCLASSIFIABLE ESTABLISHMENTS I I I I I I I I I

s
30

z 29 1 26

O

24

W

Q 22

N 20

0

Z is

u 16

cc

14

O

u 12

a

N 10

J

O 8

6

ZW 4

UCe

a 2

2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

PERCENT OF TOTAL NON-SMSA COMMERCIAVINDUSTRIAL EMPLOYMENT

Figure D-2. Percentage Mix of SMSA versus Non-SMSA Commercial/

Industrial Employment, California, 1981

D-S

CORRELATION OF SMSA AND

NON-SMSA COMMERCIAVINDUSTRIAL

EMPLOYMENT MIXES: 0.92 SERVICES

LEVEL OF SIGNIFICANCE: MANUFACTURING a<0.01

RETAIL TRADE 

bh

FINANCE, INSURANCE, & REAL ESTATE

WHOLESALE TRADE

TRANSPORTATION & PUBLIC UTILITIES

CONTRACT CONSTRUCTION

- NONCLASSIFIABLE ESTABLISHMENTS

AGRICULTURAL SERVICES

MINING
30

i

W.

28

26

OJ

24

W

a 22

oc

Ln 20

0

Z 18

a

u 16

ce

14

O

u 12 a

10

J

a

O 8

h6

W 4

u

a 2

MINING 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

PERCENT OF TOTAL NON-SMSA COMMERCIAVINDUSTRIAL EMPLOYMENT

Figure D-3. Percentage Mix of SMSA versus Non-SMSA Commercial/

Industrial Employment, Florida, 1981

D-6

i r`..^ 
30

Z 28 f} 26

O

J 24

W

Q 22

cc

20

0

Z 18

Q

U 16

14

O

u 12 Q

10 J

O

8

fU- 6

O

W 4 U

Ce

a 2

CORRELATION OF SMSA AND MANUFACTURING

NON-SMSA COMMERCIAVINDUSTRIAL

EMPLOYMENT MIXES: 0.98

LEVEL OF SIGNIFICANCE:

a<0.01 SERVICES

RETAIL TRADE

ph 

Al

FINANCE, INSURANCE,

& REAL ESTATE 7

• WHOLESALE TRADE

TRANSPORTATION & PUBLIC UTILITIES

CONTRACT CONSTRUCTION

AGRICULTURAL SERVICES

- NONCLASSIFIABLE ESTABLISHMENTS

i I I I I I I I I I

MINING 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

PFRCENT OF TOTAL NON-SMSA COMMERCIAVINDUSTRIAL EMPLOYMENT

Figure D-4. Percentage Mix of SMSA versus Non-SMSA Commercial/

Industrial Employment, Iowa, 1981

D-7
i

s

f

30

Z 28

} 26

O

a 24

W

Q 22

D 20

a

Z 18

U 16

adT 14

O

U 12 Q

10

J

O 8

U. 6 O

U 4

U

w

a 2

2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

PERCENT OF TOTAL NON-SMSA COMMERCIAVINDUSTRIAL EMPLOYMENT

Figure D-5. Percentage Mix of SMSA versus Non-SMSA Commercial/

Industrial, Employment, Montana, 1981

D-8

CORRELATION OF SMSA AND RETAIL TRADE •

NON-SMSA COMMERCIAL/INDUSTRIAL SERVICES•

EMPLOYMENT MIXES: 0.93

LEVEL OF SIGNIFICANCE:

a<0.01

ph

CONTRACT CONSTRUCTION

WHOLESALE TRADE

CE, INSURANCE, & REAL ESTATE

NSPORTATION & PUBLIC UTILIT!ES

• MANUFACTURING

N ESTABLISHMENTS

AGRICULTURAL SERVICES — I 1 I I I I I I I I I
0

It

ODM

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D-9
30

^- 28

Z

V 26

O

J 24

W

Q 22

20

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? 18

u 16

14

O

u 12

a

10

0 8

LL 6 O

W 4 Uad

W 7

aMINING 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

PERCENT OF TOTAL NON-SMSA COMMERCIAVINDUSTRIAL EMPLOYMENT

Figure D-7. Percentage Mix of SMSA versus Non-SMSA Commercial/

Industrial Employment, Oregon, 1981

D-10
t.

s 

°v

coM

M

Z \

UA

C., 

}O

u

J N

Cl)

W

U 1-1

J 00

m co Q d

w

H (/^ <O

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? z> N

C4 w

r-I

Q ^ N

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We Pa

r ^d

Lo a w

0 0

Ln CL

o ^w

z 00 cc

J cc -H

D UO H b

O 04 r^

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W 0^

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O uj

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D-11

FAM.
30

28

Z

}

26

O

24

W

Q 22

OC

j 20

Z 18

Q 16 u

14

O

U 12

Q

10

J

O 8

O 6

W 4

U

w 2 d

CORRELATION OF SMSA AND

NON-SMSA COMMERCIAL/INDUSTRIAL

EMPLOYMENT MIXES: 0.97

LEVEL OF SIGNIFICANCE:

a < 0.01

%,h

MANUFACTURING•

TRANSPORTATION &

PUBLIC UTILITIES

• WHOLESALE TRADE

/NCLASSIFIABLE

INANCE, INSURANCE, & REAL ESTATE

RACT CONSTRUCTION

 ESTABLISHMENTS

AGRICULTURAL SERVICES

MINING I

I I I I I I I

•

RETAIL TRADE

SERVICES*

2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

PERCENT OF TOTAL NON-SMSA COMMERCIAVINDUSTRIAL EMPLOYMENT

Figure D-9. Percentage Mix of SMSA versus Non-SMSA Commercial/

Industrial Employment, South Dakota, 1981

D-12
APPENDIX E

INDIVIDUAL SECTOR COMPARISON OF SMSA AND

NON-SMSA LOCAL GOVERNMENTS

}

.:- ;.— .1p.

.l
APPENDIX E

INDIVIDUAL SECTOR COMPARISON OF SMSA AND

NON-SMSA LOCAL GOVERNMENTS

Similar to commercial/industrial activity, the variations between

proportionate shares of SMSA and non -SMSA government activity in the nine

states that were analyzed fall into four categories: ( 1) variation without a

clearly definable pattern, (2) similar proportionate shares, ( 3) consistently higher non-SMSA proportionate shares, and (4) consistently higher SMSA

proportionate shares. These category distinctions were based on the

statistical analysis of variance shown in Table E-1.

A. GOVERNMENT SERVICE SECTORS LACKING DISTINCT SMSA VERSUS NON-SMSA PATTERNS

OF SIMILARITY OR VARIANCE

1. Local Utilities

As shown in Figure E-1, " Local Utilities" employment does not exhibit

a clear pattern of variation between SMSA and non -SMSA areas across the nine

states that were analyzed. l However, nationwide, SMSA and non - SMSA areas

have nearly equal proportionate shares -- 2.6 and 2.8%, respectively -- of

their local government employment in this sector (see Table E-2). Therefore,

at least from the viewpoint of the country as a whole, the data indicate that

SMSA and non-SMSA areas have substantially the same proportionate share of

"Local Utility" government user classes meeting the FCC's definition of

"Industrial - Power and Special Industrial" activities.

i

2. Income Maintenance

As with "Local Utilities," " Income Maintenance" does not exhibit a.

distinct pattern of similarity or dissimilarity between SMSA and non-SMSA

areas ( see Figure E-2). However, at the national level (see Table E-2)

non-SMSA areas have a smaller proportionate share ( 1.9%) of "Income

Maintenance" employment than SMSA areas ( 2.7%). Because " Income Maintenance"

activity is only eligible under the FCC "Public Safety - Local Government"

sub-category (i.e., the sub-category that encompasses almost all local

government functions), the available data for this sector does not directly

substantiate the potential size of any user - specific FCC sub- category.

B. GOVERNMENT SERVICE SECTORS WITH SIMILAR SMSA AND NON -SMSA PRUPORTIONATE

SHARES OF EMPLOYMENT

Non-SMSA and SMSA areas have similar shares of empioyment in two sectors

of the nine states that were analyzed: " Education" and "Other" ( see Figures

E-3 and E-4, and Table E-2).

1 Figures E-1 through E-13 are based on the data in Table E-2.

E-3 PRECEDINQ PALS BLANK NOT FK;^" rT,
E!

1. Education

As shown in Figure E-3, "Education," the largest local government ,F sector, has closely similar proportions of local government employment in SMSA

i and non-SMSA areas: only in Florida, New York, and Pennsylvania does the

difference between the two areas' proportionate employment shares exceed two

4 percentage points. Nationwide, "Education" constitutes 52.6 and 59.8% of SMSA

and non-SMSA local government employment, respectively (see Table E-2). In

terms of the FCC categories presented in Table B-1, these data indicate that

state non-SMSA areas have a proportionately equal or slightly larger "Special

FF ` Emergency - School Buses" user class than SMSA areas.

F*

2. Other

The proportion of "Other" local governmental activity in SMSA and

non-SMSA areas is similar in all of the states analyzed except Alaska (see

Figure E-4). Nationwide, this sector constitutes 4.9 and 3.4% of local

government employment in SMSAs and non-SMSAs, respectively. Similar to the

"Income Maintenance" sector discussed above, this sector does not coincide

with any specific user class of private land mobile radio except the

broad-based "Public Safety - Local Government" sub-category.

C. GOVERNMENT SERVICE SECTORS CONSTITUTING A LARGER PROPORTIONATE SHARE OF

NUN-SMSA EMPLOYMENT THAN SMSA EMPLOYMENT

Non-SMSA areas, in comparison to SMSA areas, have a larger proportionate

share of local government employment in three sectors: "Hospitals and

Health," "Highways," and "Government Administration." As mentioned above, the

first two of these sectors directly coincide with the FCC "Special Emergency -

Medical Services" and "Public Safety - Highway Maintenance" sub-categories,

while "Government Administration" is subsumed under the broadly defined

"Public Safety - Local Government" sub-category.

1. Hospitals and Health

As shown in Figure E-5, non-SMSA areas, relative to SMSA areas,

have a higher proportionate share of "Hospitals and Health" employment in six

of the nine states that were analyzed. Nationwide, this sector employs the

second largest proportion (10.1%) of local government workers in non-SMSA

areas and the third largest proportion (7.4X) of SMSA local government workers

(see rable E-2). In terms of the FCC sub-categories, these employment figures

indicate that non-SMSAs have a proportionately larger "Public Safety - Medical

Emergency" user class than SMSA areas. [The actual level of non-SMSA

"Hospitals and Health" employment may be substantially higher than that

indicated by local government data alone because state government composes

49.5% of non-federal employment in the "Hospitals and Health" sector (see

Table 4-3).]

E-4
2. Highways

In the "Highways" sector of all nine states, the proportionate

share of non-SMSA employment exceeds the proportionate share of SMSA

employment (see Figure E-6). This same pattern exists at the national level

where the respective SMSA and non-SMSA shares of local government "Highways"

employment are 3.1 and 5.5%, respectively. Similar to the "Hospitals and

Health" sector, state government contains a large portion (i.e., 47%) of

overall non-federal employment in this sector. Because "...many state

governments restrict their responsibilities for public roads to those areas

outside of incorporated municipalities," (Bonifant, 1984) the proportionate

share of non-federal government employment in the "Highways" sector may be

significantly higher in non-SMSA areas than in SMSA areas. In terms of

private land mobile radio service, the data indicate that the FCC "Public

Safety - Highway Maintenance" user class comprises a larger proportion of

potential land mobile radio users in no..-SMSA areas than in SMSA areas.

3. Government Administration

Figure E-7 shows that the proportionate share of non-SMSA local

government employment in "Government Administration" exceeds the SMSA share by

more than a percentage point in five of the nine states; in the remaining four

states, the proportionate shares of the two areas are nearly the same. At the

national level, "Government Administration" constitutes 5.5 and 6.2% of SMSA

and non-SMSA local government employment, respectively. Because the Census'

"Government Administration" sector represents just one component of the

broad-based "Public Safety - Local Government" user class, it is difficult to

distinguish between the proportionate size of SMSA and non-SMSA user classes

represented by this radio service sub-category.

D. GOVERNMENT SERVICE SECTORS CONSTITUTING A SMALLER PROPORTIONATE SHARE OF

NON-SMSA EMPLOYMENT THAN SMSA EMPLOYMENT

Non-SMSA areas have a smaller proportionate share of local government

employment in six sectors: "Police and Fire," "Environment," "Other

Transportation," "Corrections," "Housing and Urban Renewal," and "Transit."

The latter four sectors represent user classes that are defined only under the

FCC "Public Safety - Local Government" sub-category. The remaining two

sectors, "Police and Fire" and "Environment," coincide relatively closely with

the FCC "Public Safety - Police, Fire and Forestry-Conservation"

sub-categories; however, as mentioned in Appendix B, some "Fire" sector

functions have eligibility for land mobile radio service in the "Special

Emergency - Rescue Organizations" sub-category.

1. Police and Fire

SMSA areas have a higher proportion of their local government

employment in "Police and Fire" than non-SMSA areas. As indicated in Figure

E-8, the SMSA proportion of employment in this sector exceeds the non-SMSA

proportion in all of the states that were analyzed except Alaska. Nationwide,

E-5
the "Police and Fire" sector constitutes 10.4% of SMSA local government

employment and 6.2% of non-SMSA local government employment. The actual

difference between the two areas in this sector is somewhat smaller because

non-SMSA areas have proportionately much higher levels of firefighter

volunteers than SMSA areas.2

2. Environment

"Environment" constitutes a greater proportionate share of

employment in SMSA areas than in non-SMSA areas (see Figure E-9). However,

_`. the local government data for this sector do not adequately represent the

proportionate sizes of SMSA and non-SMSA government user classes of private

land mobile radio.

As shown in Table E-3, the "Natural Resources" component of the

"Environment" sector is proportionately larger in non-SMSA areas than

in SMSA areas. Moreover, while "Natural Resources" activity constitutes less

than one-half of one percent of local government employment, it composes the

entire 5.3% share of state government "Environment" employment -- a level of

employment nearly equal to the number of local government "Environment"

workers in SMSA areas (see Table E-0. 3 Therefore, in terms of the FCC

sub-categories, non-SMSA areas probably have a proportionately larger "Public

Safety - Forestry Conservation" user class than SMSA areas even though local

government data alone suggest the opposite.

3. Other Transportation, Corrections, Housing and Urban Renewal, and

Transit

As shown in Figures E-10 through E-13 and in Table E-2, SMSA areas

have larger proportions of their local government employment in the 'Other

Transportation," "Corrections," "Housing and Urban Renewal," and "Transit"

sectors than non-SMSA areas in all nine states except Alaska. Nationwide,

these four sectors combined constitute less than 3.2% of the local government

employment in non-SMSA areas. On the other hand, SMSA areas at the national

level have 8.2% of their local government employment in these four sectors.

Of the four sectors, "Housing and Urban Renewal" and "Transit" make up 80% of

the difference between the two areas. Because all four of these sectors only

2 Because the data are based on full-time employment equivalents, the proportion of overall non-SMSA local government workers providing Fire Protection

services is less than the equivalent proportion in SMSA areas because of the

greater propensity for volunteers in non-SMSA areas as opposed to SMSA areas

(i.e., the ratios of full to part-time firefighters in non-SMSA and SMSA

areas are 1.2:1 and 6:1, respectively).

3By definition, state "Natural Resource" services consist of land-intensive, predominantly non-SMSA activities (e.g., forest fire prevention and

control; irrigation; land and forest reclamation; fish and game preservation

a

r

and control; soil conservation; forestry; agricultural aids; mineral

resource activities; and state government park and recreation activities).

E-6

_
represent potential private land mobile radio users under the "Public Safety -

Local Governments" sub-category, they do not constitute major user-specific

classes by themselves. Therefore, even though the SMSA and non-SMSA

proportionate share of employment activity in these four sectors differ, the

differences do not represent a significant divergence between the two areas in

terms of the proportionate size of user-specific private land mobile radio

user classes.

E-7
4

3

PROPORTION OF

F< TOTAL EMPLOYMENT

2

q SMSR

i

NON-SMSA

A

AL CR FL IO MO NY OR PE SD

STATE

Figure E-1. SMSA versus Non-SMSA Government

Employment - Local Utilities, 1977

i'I

8

6.4

4.9

PROPORTION OF

TOTAL EMPLOYMENT

3.2

q SMSA

l.b

NON-SMSA

A

RL CA FL 10 MO NY OR PE SD

STATE

Figure E-2. SMSA versus Non-SMSA Government

Employment - Income Maintenance, 1977

E-8

PAR. 
F.'

7

i

E,

I'

56

42

PROPORTION OF

TOTAL EMPLOYMENT

28 i, t

q SMSA

14

NON-SMSA

AL CA FL IO MO NY OR PE SD

STRTE

Figure E-3. SMSA versus Non-SMSA Government

Employment - Education, 1977

20

16

12

PROPORTION OF

TOTRL EMPLOYMENT

8

q SMSR

4

NON-SMSA

AL CA FL IO MO NY OR PE SD

STRTE

Figure E-4. SMSA versus Non-SMSA Government

Employment - Other, 1977

E-9

"A-
12

19

7

PROPORTION OF

TOTAL EMPLOYMENT

5

q SMSR

2

NON-SMSA

9

RL CA FL IO NO NY OR PE SD

STATE

Figure E-5. SMSA versus Non-SMSA Government

Employment - Health S Hospitals, 1977

9

7.2

5.4

PROPORTION OF

TOTAL EMPLOYMENT

3.6

q SMSA

1.8

NON-SMSA

0

RL CA FL 10 NO NY OR PE SD

STATE

Figure E-6. SMSA versus Non-SMSA Government

Employment - Highways, 1977

E-l0

V

F

E

h
9

7.2

5.4

PROPORTION OF

TOTAL EMPLOYMENT

3.6

q SMSA

1.8

NON-SMSA

0^ ^^^^^^^^^^^^^^^^^ n

AL CA FL IO MO NY OR PE SD

STATE

Figure E-7. SMSA versus Non-SMSA Government Employment -

Government Administration, 1977

11

9

PROPORTION OF

TOTAL EMPLOYMENT

7

4

q SMSA

2

NON-SMSA

AL CA FL IO X10 NY OR PE SD

STATE

Figure E-8. SMSA versus Non-SMSA Government

Employment - Police 6 Fire, 1977

E-11 !
5

4

3

PROPORTION OF

TOTRL EMPLOYMENT

2

WC

q SMSR

1

NON-SMSR

RL CR FL IO NO NY OR PE SD

i

STATE

Figure E-9. SMSA versus Non-SMSA Government

Employment - Natural Resources, 1977

1.5

1.2

PROPORTION OF

TOTRL EMPLOYMENT

.d

q SMSA

.3

NON-SMSA

4

RL CR FL IO NO NY OR PE SD

STRTE

Figure E-10. SMSA versus Non-SMSA Government

Employment - Other Transportation, 1977

E-12
k

2

1

PROPORTION OF

TOTRL EMPLOYMENT

q SMSR

non-SnSR

RL CR FL 10 NO NY OR PE SD

STATE

Figure E-11. SMSA versus Non-SMSA Government

Employment - Corrections, 1977

4,P

3.b

PROPORTION OF

TOTRL EMPLOYMENT

2.4

q SMSR

1.2

-L-1-1 fit It - i Il Iii

^ NON-SnSR

RL CR FL 10 n0 NY OR PE SD

STRTE

Figure E-12. SMSA versus Non-SMSA Government Employment -

Housing 6 Urban Renewal, 1977

E-13

i•

a;
7

5.6

4. 2

PROPORTION OF

TOTAL EMPLOYMENT

2.8

q SMSA

1.4

NON-SMSA

t. ^ I L.- I ` a 1 I l_ 1 L—A .N

AL ^ CA FL I0 MO NY OR PE SD

STATE

Figure E-13. SMSA versus Non-SMSA Government

Emplc:yment - Transit, 1977

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E-16
Table E-3. Non-SMSA versus SMSA Local Government Natural Resources

and Local Parks and Recreation Employment, United

States, 1977a

Non-SMSA SMSA

Percent

Number of Total Number Percent of

of Non-SMSA of Total SMSA

Employees Employment Employees Employment

Natural Resources 10,018 0.5 17,414 0.3

Local Parks and Recreation 17,899 0.9 139,451 2.5

aSource: Table 13, Census of Governments - Compendium of Public Employment,

1977.

Table E-4. State Government versus Local Government Natural Resources

Employment, United States, 1977a

Percent of

Total

Employment Employment

State Governments 152,426 5.3

Local Governments 27,432 0.4

a Source: Table 13, Census of Governments - Compendium of Public Employment,

1977.

E-17
APPENDIX F

STATE-LEVEL COMPARISONS OF SMSA AND NON-SMSA

LOCAL GOVERNMENT ACTIVITY MIXES

-VON-
APPENDIX F

STATE-LEVEL COMPARISONS OF SMSA AND NON-SMSA

LOCAL GOVERNMENT ACTIVITY MIXES

The graphs in this appendix depict the relationship between SMSA and

non-SMSA mixes of local government activity in Alaska, California, Florida,

Iowa, Montana, New York, Oregon, Pennsylvania, and South Dakota.

The vertical and horizontal axes in Figures D-1 to D-9 represent the

respective percentages of SMSA and non-SMSA employment contained in each local

government sector. The 45-deg line in each figure highlights the points on

the graph where the percentage of total non-SMSA employment in a given local

government sector equals the percentage of total SMSA employment in the same

sector.

W,

i

1'S i2 PALS 8 NOW

F-3
9

^t r

8

Z

t 7

IL

W.

O

W

H

Z 6

12

Z

ncW

^O 5

O

J

U

O 4

Q

J

Q 3

O

LL

O

^- 2

ZW

W

CL

1

9T_

OTHER

POLICE AND

FIRE PROTECTION

GOVERNMENT

ADMINISTRATION

CORRELATION OF SMSA AND

NON-SMSA NON-EDUCATION

LOCAL GOVERNMENT

EMPLOYMENT MIXES: 0.85

LEVEL OF SIGNIFICANCE:

a < 0.01

0

HOUSING AND

URBAN RENEWAL

• • LOCAL UTILITIES

NATURAL

RESOURCES • •

TRANSIT HIGHWAYS • HOSPITALS AND HEALTH

• INCOME MAINTENANCE

*OTHER TRANSPORTATION

I I I I I I

CORRECTIONS 1 2 3 4 5 6 7 8 9 10

PERCENT OF TOTAL NON-SMSA LOCAL GOVERNMENT EMPLOYMENT

Figure F-1. Percentage Mix of SMSA versus Non-SMSA Local

Government Employment, Alaska, 1977

F-4

A
15

14

W

Z

13

O 12

CL

W 11

F

Z

10

Z

W 9

O

0 p8

J

aV 7

O

6

N

-^ 5

Q

O 4

U_

O 3

ZW

V 2

w

W

a

1

CORRELATION OF SMSA AND

NON-SMSA NON-EDUCATION

LOCAL GOVERNMENT

EMPLOYMENT MIXES: 0.90

LEVEL OF SIGNIFICANCE:

a<0.01

POLICE & FIRE

PROTECTION

•

HOSPITALS & HEALTH

•

ph

• GOVERNMENT ADMINISTRATION

• OTHER

TRANSIT INCOME MAINTENANCE

NATURAL RESOURCES

• LOCAL UTILITIES

• HIGHWAYS

CORRECTIONS

HOUSING & URBAN RENEWAL

OTHER TRANSPORTATION

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

PERCENT OF TOTAL NON-SMSA LOCAL GOVERNMENT EMPLOYMENT

Figure F•-2. Percentage Mix of SMSA versus Non—SMSA Local

Government Employment, California, 1977

F—j
15

14

W.

Z

13

O 12

^ 11

Z

10

Z

ceUj 9

O

O 8

J

a

U 7

O

J

6

J G

a J

O

^- 4

u_

O

f- 3

Z

W

U 2

CeL" CA_

1

CORRELATION OF SMSA, AND

NON-SMSA NON-EDUCATION

LOCAL GOVERNMENT

EMPLOYMENT MIXES: 0.90

LEVEL OF SIGNIFICANCE:

a <0.01

POLICE & FIRE PROTECTION

•

HOSPITALS & HEALTH

bby

OTHER

•

GOVERNMENT ADMINISTRATION

HOUSING & URBAN RENEWAL

NATURAL RESOURCES

•HIGHWAYS

TRANSIT LOCAL UTILITIES

INCOME MAINTENANCE

CORRECTIONS

OTHER TRANSPORTATION 1 I I I I I I I _ L I I I

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

PERCENT OF TOTAL NON-SMSA LOCAL GOVERNMENT EMPLOYMENT

Figure F-3. Percentage Mix of SMSA versus Non-SMSA Local

Government Employment, Florida, 1977

F-6
CORRELATION OF SMSA AND

NON-SMSA NON-EDUCATION

LOCAL GOVERNMENT

EMPLOYMENT MIXES: 0.51

LEVE L OF S IGN IF ICANCE:

a--,>0.10

POLICE & FIRE PROTECTION

•

0

GOVERNMENT ADMINISTRATION

ENVIRONMENT

OTHER • HIGHWAYS

NATURAL RESOURCES HOSPITALS & HEALTH

•^fLOCAL UTILITIES

• INCOME MAINTENANCE

s•. CORRECTIONS

TRANSIT

OTHER TRA NSPORTATIONI I I I I I I ^!

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

PERCENT OF TOTAL NCN-SMSA LOCAL GOVERNMENT EMPLOYMENT

Figure F-4. Percentage Mix of SMS1 versus Non-SMSA Local

Government Employment, Iowa, 1977

F-7

15

14

P_

Z 13

O 12

CL

W 11

F—

Z

V 10

Z

cc

9

O

0 8

J

O 7

J

^ 6

V) J 5

Q

O 4

O 3

Z

L"

2

cc

W

CL

1
tW 1^

O 1^

W 11

Z

1 a

Z

CdW 5

0

(7 8

Q

V ^

O

N

5

Q

O^ 4

U_

O 3

Z

W

0C 2 Wd

1

1!

14

i ,f

S

1

CORRELATION OF SMSA AND

NON-SMSA NON-EDUCATION

LOCAL GOVERNMENT

EMPLOYMENT MIXES: 0.79

LEVEL OF SIGNIFICANCE:

a<0.01

POLICE & FIRE PROTECTION •

ph

HOSPITALS & HEALTH •

• GOVERNMENT

/NATURAL

ADMINISTRATION

SING & URBAN RENEWAL

*HIGHWAYS

LITIES

PORTATION

URCES

-,CORRECTIONS

TRANSIT INCOME MAINTENANCE I_ l I I I I I i I

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

PERCENT OF TOTAL NON-SMSA LOCAL GOVERNMENT EMPLOYMENT

Figure F-5. Percentage Mix of SMSA versus Non-SMSA Local

Government Employment, Montana, 1977

F-8 C, "d'
1

Z

1

O 1

CL

W 1

Z

1

Z

0

J

Q

U

O

Q

O

W

UCe Wd

5

4 CORRELATION OF SMSA AND

NON-SMSA NON-EDUCATION

3 LOCAL GOVERNMENT

EMPLOYMENT MIXES: 0.44

2 LEVEL OF SIGNIFICANCE:

a»0.01 POLICE & FIRE

1 ' PROTECTION

HOSPITALS & HEALTH

^ pha

-TRANSIT

• INCOME MAINTENANCE

5 • HOUSING & URBAN

RENEWAL

5 • OTHER

4 •

NATURAL GOVERNMENT ADMINISTRATION

3 RESOURCES • HIGHWAYS

Z CORRECTIONS

1 • LOCAL UTILITIES

OTHER TRANSPORTATION I I I I I I I I

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

PERCENT OF TOTAL NON-SMSA LOCAL GOVERNMENT EMPLOYMENT

Figure F-6. Percentage Mix of SMSA versus Non-SMSA Local

Government Employment, New York, 1977

F-9

^, -t; A
1

1

Z

1

O 1

W 1

H

Z

^ 1

Z

ocW

1

O

0

J

V

O

Q

N

J

QH

O

u_

O

ZW

U

ocWCL

i

5

4

3

t

1

5

5

I•

CORRELATION CF SMSA AND

NON-SMSA NON-EDUCATION

LOCAL GOVERNMENT

EMPLOYMENT MIXES: 0.62

LEVEL OF SIGNIFICANCE:

a<0.10

POLICE & FIRE PROTECTION

•

a^

^h

. GOVERNMENT ADMINISTRATION

OTHER

TRANSIT , HIGHWAYS

HOUSING &URBAN RENEWAL

LOCAL UTILITIES

NATURAL RESOURCES • HOSPITALS & HEALTH

CORRECTIONS

INCOME MAINTENANCE

OTHER TRANSPORTATION I I i I I I I

1 2 3 4 5 6 7 8 9 10 11 12 1s 14 15

PERCENT OF TOTAL NON-SMSA LOCAL GOVERNMENT EMPLOYMENT

` Figure F-7. Percentage Mix of SMSA versus Non-SMSA Local

FBI Government Employment, Oregon, 1977

C - F-10
15

14

Z

13

r

O 12

a.

W 11 H

Z

10

Z

adW 9

O

C7 8

J

Q

U 7

OJ

6

N

J 5

Q

O 4

O

3

ZW

U 2

W

1

CORRELATION OF SMSA AND

NON-SMSA NON-EDUCATION

LOCAL GOVERNMENT

EMPLOYMENT MIXES: 0.71

LEVEL OF SIGNIFICANCE:

a<0.01

• POLICE & FIRE

PROTECTION

HOUSING &

URBAN RENEWAL

•

OTHER • INCOME MAINTENANCE •

TRANSIT

. HIGHWAYS

HOSPITALS 8 HEALTH

NATURAL RESOURCES

CORRECTIONS

LOCAL UTILITIES

OTHER TRANSPORTATION

ph

• GOVERNMENT ADMINISTRATION

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

PERCENT OF TOTAL NON-SMSA LOCAL GOVERNMENT EMPLOYMENT

Figure F-8. Percentage Mix of SMSA versus Non-SMSA Local

Government Employment, Pennsylvania, 1977

F-11
15

14

Z

^ 13

O

12

W

^ 11

Z

Uj

::E 10

> 9

O

O 8

U

O 7 J

a

6

N

J

a 5

O

'" 4

U

~ 3 ZW

V 2

W

CL

1

CORRELATION OF SMSA AND

NON-SMSA NON-EDUCATION

LOCAL GOVERNMENT

EMPLOYMENT MIXES: 0.61

LEVEL OF SIGNIFICANCE:

a<0.05

POLICE & FIRE PROTECTION

^h

XOTHE

R

•HIGHWAYS

URAL RESOURCES •GOVERNMENT

 UTILITIES ADMINISTRATION

 &URBAN RENEWAL

S

ORTATION

HOSPITALS & HEALTH

I NCOME MAINTENANCE i I I I I I I 1

TRANSIT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

PERCENT OF TOTAL NON-SMSA LOCAL GOVERNMENT EMPLOYMENT

Figure F-9. Percentage Mix of SMSA versus Non-SMSA Local

Government Employment, South Dakota, 1977

F-12
APPENDIX G

REVIEW COMMENTS FROM THE BUREAU OF

THE CENSUS, GOVERNMENTS DIVISION

lklm I

xo

►

•-.
UNITED STATES DEPARTMENT OF COMMERCE Bureau of the Census

*p4ris of

Washington, D.C. 20233

July 25, 1984

Mr. Reed Wilcox

Systems Analysis Section

Jet Propulsion Laboratory

4800 Oak Grove Drive

Pasadena, California 91109

Dear Reed:

I have looked over your study of local government activity regarding

potential use of cellular radio-telephone service. l Generally, your findings

parallel our own. We have looked chiefly at the 75 largest SMSA's. We found

these 75 areas to have a higher proportion of police, fire, and transit

employment and the remainder of the country to have the higher proportion of

education, hospital, and highway employment.

I am enclosing a copy of our 1981 report on SMSA employment. This topic is

mentioned in the first page of the text and in Table A.

In rebard to the proportion of state highway employment in non-SMSA areas,

since I have no hard data on miles of road per capita, I believe it would

be safer to say that many state governments restrict their responsibilities

for public roads to those areas outside of incorporated municipalities. This

would place more of their employment in non-metropolitan areas than would be

expected on population alone.

I know you are concerned about using 1977 data for the study. Based on what

we can see from our annual sample surveys since the 1977 Census, there has

been no appreciable change in the mix of employment types or shifts from

urban to rural or vice versa.

Good luck with your work in this area. If I may be of any additional help,

please call.

Sincerely,

BERN M. BONIFANr

Employment Branch

Governments Division

1Mr. Bonifant's reference to "cellular radio-telephone service" is a misnomer.

This report concerns the use of land mobile communication services as they

may apply to applications in non-metropolitan areas.

F$XXONG PAG$ BLANK NOW Fl URD

G-3