***Materials Consumption by U.S. Manufacturing Industries***



Contributed by:   Gordon H. Hanson

                  Department of Economics

                  University of Texas

                  Austin, TX 78712

E-mail:           hanson@mundo.eco.utexas.edu





This data should be referenced to the paper:



Feenstra, R.C. and G.H. Hanson, 1996, "Globalization, Outsourcing,

and Wage Inequality," American Economic Review, May, 240-245.







     The file MAT7292.ASC contains data on materials consumption

by four-digit SIC manufacturing industries in the United States for

the period 1972 to 1992.  The data are from the Materials Consumed

by Kind table (Table 7) in the 1972, 1977, 1982, 1987, and 1992 U.S.

Census of Manufactures (data from Censuses after 1972 have been

concorded to the 1972 SIC code).  The data contained in the file

show how much each four-digit manufacturing industry purchases from

other manufacturing industries and the value of materials each

industry purchases in total (the sum of manufacturing and

nonmanufacturing materials) for each Census year.



     The Census collects data on the purchase of about 1,000

different materials (these are the raw data that the BEA uses to

construct input-output tables).  It assigns each material a six-

digit code, the first four digits of which correspond to the SIC

industry in which the good was produced (see variable definitions

below).  Of course, not all industries purchase appreciable

quantities of all materials.  For each industry, the Census collects

data on the materials that account for most material purchases by

that industry (for most industries this means purchases in excess

of $10,000).  The Census uses surveys and other means to determine

which materials belong in this set.  For the typical four-digit

industry, the Census shows the value of purchases for 10 to 15

different materials.  The listing of material purchases has become

more complete over time, so that in later Census years there are

more observations per purchasing industry than in earlier Census

years.  For a given industry, then, the list of materials on which

the Census collects data changes over time.  This means that in some

cases it is not possible to track the purchase of a specific

material by a specific industry between Census years.



     While the Census shows purchases of all types of materials --

manufacturing and nonmanufacturing -- the file MAT7292.ASC contains

data on (1) the purchase of manufacturing materials, and (2) the

value of total material purchases by each industry (the file

excludes a detailed listing of nonmanufacturing materials).  See the

notes accompanying Materials Consumed by Kind in Census of

Manufacturers for more details on the materials data.



Variable Definitions:



The file MAT7292.ASC contains the following variables:





columns 1-4   -  Indicates the year on which the observation is taken.

  year



columns 7-10  - Indicates the purchasing industry by 1972 SIC code.  Data

  sic72         for Census years following 1972 have been concorded to

                the 1972 SIC code.



columns 13-16 - Indicates the source industry (the industry from which

  mat72         the material is purchased) by 1972 SIC code.  The Census

                uses a six-digit materials code to identify the material

                being purchased.  For most cases, the materials code

                corresponds to a single four-digit SIC industry.  For

                some cases, however, the materials code groups together

                materials from several four digit-industries in the same

                two or three-digit SIC industry.  In cases of the second

                type, the industry indicated in mat72 is the corresponding

                two or three-digit SIC industry.



columns 18-28 - Indicates the nominal value of materials purchased by the

  matcost       industry given in sic72 from the industry given in mat72

                in the given year.



columns 30-40 - Indicates the total nominal value of materials purchased

  tmatcost      (from manufacturing and nonmanufacturing industries) by

                the industry given in sic72 in the given year.





Special Considerations:





For a few industries in each year, no detailed information on material

purchases is available.  In most of these cases, information is available

on total material purchases.  For these industries the entries for

the variables mat72 and matcost are both zero.





Size:  MAT7292.ASC contains 27,067 records.