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Gross Job Flows for the U.S. Manufacturing Sector: Measurement from the Longitudinal Research Database

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  • Lucia Foster
  • John Haltiwanger
  • Namsuk Kim

Abstract

Measures of job creation and destruction are now produced regularly by the U.S. statistical agencies. The Bureau of Labor Statistics releases via the Business Employment Dynamics (BED) on a quarterly basis measures of job creation and destruction for the U.S. nonfarm business sector and related disaggregation by industrial sector and size class. The U.S. Census Bureau has developed the Longitudinal Business Database (LBD) covering the nonfarm business sector that has been used to produce research analysis and special tabulations including tabulations of job creation and destruction. Both of these data programs build upon the measurement methods and data analysis of job creation and destruction measures from the Longitudinal Research Database (LRD) developed and published by Davis, Haltiwanger and Schuh (1996). In this paper, the LRD based estimates of job creation and destruction are updated and made available for consistent annual and quarterly series from 1972-1998. While the BED and LBD programs are more comprehensive in scope than the LRD, the extensive development of the LRD permits the construction of measures of job creation and destruction for a rich array of employer characteristics including industry, size, business age, ownership structure, location and wage structure. The updated series that are released with this working paper provide measures along each of these dimensions. The paper describes in detail the changes in the processing of the Annual Survey of Manufactures over the 1972-1998 period that are important to incorporate by users of the LRD at Census Research Data Centers as well as users of products from the LRD such as job creation and destruction.

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File URL: ftp://ftp2.census.gov/ces/wp/2006/CES-WP-06-30.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 06-30.

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Length: 42 pages
Date of creation: Dec 2006
Date of revision:
Handle: RePEc:cen:wpaper:06-30

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References

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  1. Steve J. Davis & John Haltiwanger, 1991. "Gross job creation, gross job destruction and employment reallocation," Working Paper Series, Macroeconomic Issues, Federal Reserve Bank of Chicago 91-5, Federal Reserve Bank of Chicago.
  2. Ron S Jarmin & Javier Miranda, 2002. "The Longitudinal Business Database," Working Papers, Center for Economic Studies, U.S. Census Bureau 02-17, Center for Economic Studies, U.S. Census Bureau.
  3. Steven J. Davis & John Haltiwanger & Ron Jarmin & Javier Miranda, 2006. "Volatility and Dispersion in Business Growth Rates: Publicly Traded versus Privately Held Firms," NBER Working Papers 12354, National Bureau of Economic Research, Inc.
  4. Diego Comin & Thomas Philippon, 2005. "The Rise in Firm-Level Volatility: Causes and Consequences," NBER Working Papers 11388, National Bureau of Economic Research, Inc.
  5. Steven J. Davis & R. Jason Faberman & John Haltiwanger, 2006. "The Flow Approach to Labor Markets: New Data Sources and Micro-Macro Links," NBER Working Papers 12167, National Bureau of Economic Research, Inc.
  6. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262540932, December.
  7. R. Jason Faberman, 2006. "Job Flows and the Recent Business Cycle: Not All "Recoveries" Are Created Equal," Working Papers, U.S. Bureau of Labor Statistics 391, U.S. Bureau of Labor Statistics.
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Cited by:
  1. Randy Becker & Cheryl Grim, 2011. "Newly Recovered Microdata on U.S. Manufacturing Plants from the 1950s and 1960s: Some Early Glimpses," Working Papers, Center for Economic Studies, U.S. Census Bureau 11-29, Center for Economic Studies, U.S. Census Bureau.
  2. Ravi Balakrishnan, 2008. "Canadian Firm and Job Dynamics," IMF Working Papers 08/31, International Monetary Fund.
  3. Francois Gourio & Anil K Kashyap, 2007. "Investment Spikes: New Facts and a General Equilibrium Exploration," NBER Working Papers 13157, National Bureau of Economic Research, Inc.
  4. Yoonsoo Lee & Toshihiko Mukoyama, 2008. "Entry, Exit, and Plant-Level Dynamics over the Business Cycle," Working Papers, Center for Economic Studies, U.S. Census Bureau 08-17, Center for Economic Studies, U.S. Census Bureau.

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