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Measuring the Dynamics of Young and Small Businesses: Integrating the Employer and Nonemployer Universes

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Author Info

  • Javier Miranda
  • Alfred Nucci
  • Steven J. Davis
  • John Haltiwanger
  • Ron S. Jarmin
  • C.J. Krizan
  • Kristin Sandusky

Abstract

We develop a preliminary version of an Integrated Longitudinal Business Database (ILBD) that combines administrative records and survey-based data for virtually all employer and nonemployer business units in the United States. In the process, we confront conceptual and practical issues that arise in measuring the importance and dynamic behavior of younger and smaller businesses. We also document some basic facts about younger and smaller businesses. In doing so, we exploit the ability of the ILBD to follow business transitions between employer and nonemployer status, and vice-versa. This aspect of the ILBD opens a new frontier for the study of business formation and the precursors to job creation in the U.S. economy.

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File URL: ftp://ftp2.census.gov/ces/wp/2006/CES-WP-06-04.pdf
File Function: First version, 2006
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Bibliographic Info

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 06-04.

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Length: 40 pages
Date of creation: Feb 2006
Date of revision:
Handle: RePEc:cen:wpaper:06-04

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Keywords: Data integration; nonemployer businesses; LBD;

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  1. Dunne, T. & Roberts, M.J. & Samuelson, L., 1988. "The Growth And Failure Of U.S. Manufacturing Plants," Papers 1-87-5, Pennsylvania State - Department of Economics.
  2. Richard E. Caves, 1998. "Industrial Organization and New Findings on the Turnover and Mobility of Firms," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 1947-1982, December.
  3. Holmes, Thomas J & Schmitz, James A, Jr, 1995. "On the Turnover of Business Firms and Business Managers," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1005-38, October.
  4. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, December.
  5. Ron S Jarmin & Javier Miranda, 2002. "The Longitudinal Business Database," Working Papers 02-17, Center for Economic Studies, U.S. Census Bureau.
  6. Davis, Steven J. & Haltiwanger, John, 1999. "Gross job flows," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 41, pages 2711-2805 Elsevier.
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