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Employment Dynamics and Business Relocation: New Evidence from the National Establishment Time Series

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  • David Neumark

    ()
    (Department of Economics, University of California-Irvine)

  • Junfu Zhang

    (Public Policy Institute of California)

  • Brandon Wall

    (Public Policy Institute of California)

Abstract

We analyze and assess new evidence on employment dynamics from a new data source – the National Establishment Time Series (NETS). The NETS offers advantages over existing data sources for studying employment dynamics, including tracking business establishment relocations that can contribute to job creation or destruction on a regional level. Our primary purpose in this paper is to assess the reliability of the NETS data along a number of dimensions, and we conclude that it is a reliable data source although not without limitations. We also illustrate the usefulness of the NETS data by reporting, for California, a full decomposition of employment change into its six constituent processes, including job creation and destruction stemming from business relocation, which has figured prominently in policy debates but on which there has been no systematic evidence.

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File URL: http://www.economics.uci.edu/files/economics/docs/workingpapers/2005-06/Neumark-24.pdf
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Bibliographic Info

Paper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 050624.

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Length: 45 pages
Date of creation: Mar 2006
Date of revision:
Handle: RePEc:irv:wpaper:050624

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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 91-5, Federal Reserve Bank of Chicago.
  2. Broersma, Lourens & Gautier, Pieter, 1997. " Job Creation and Job Destruction by Small Firms: An Empirical Investigation for the Dutch Manufacturing Sector," Small Business Economics, Springer, vol. 9(3), pages 211-24, June.
  3. Picot, Garnett & Baldwin, John R., 1994. "Employment Generation by Small Producers in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 1994070e, Statistics Canada, Analytical Studies Branch.
  4. Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989. "The Growth and Failure of U.S. Manufacturing Plants," The Quarterly Journal of Economics, MIT Press, vol. 104(4), pages 671-98, November.
  5. Ron S Jarmin & Javier Miranda, 2002. "The Longitudinal Business Database," Working Papers 02-17, Center for Economic Studies, U.S. Census Bureau.
  6. Kirchhoff, Bruce A. & Phillips, Bruce D., 1988. "The effect of firm formation and growth on job creation in the United States," Journal of Business Venturing, Elsevier, vol. 3(4), pages 261-272.
  7. 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.
  8. Aldrich, Howard & Kalleberg, Arne & Marsden, Peter & Cassel, James, 1989. "In pursuit of evidence: Sampling procedures for locating new businesses," Journal of Business Venturing, Elsevier, vol. 4(6), pages 367-386, November.
  9. Jonathan S. Leonard, 1986. "In the Wrong Place at the Wrong Time: The Extent of Frictional and Structural Unemployment," NBER Working Papers 1979, National Bureau of Economic Research, Inc.
  10. Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989. "Plant Turnover and Gross Employment Flows in the U.S. Manufacturing Sector," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 48-71, January.
  11. Benedetto, Gary & Haltiwanger, John & Lane, Julia & McKinney, Kevin, 2007. "Using Worker Flows to Measure Firm Dynamics," Journal of Business & Economic Statistics, American Statistical Association, vol. 25, pages 299-313, July.
  12. Spletzer, James R, 2000. "The Contribution of Establishment Births and Deaths to Employment Growth," Journal of Business & Economic Statistics, American Statistical Association, vol. 18(1), pages 113-26, January.
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Citations

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Cited by:
  1. David Neumark & Brandon Wall & Junfu Zhang, 2008. "Do Small Businesses Create More Jobs? New Evidence from the National Establishment Time Series," NBER Working Papers 13818, National Bureau of Economic Research, Inc.
  2. Jed Kolko & David Neumark & Marisol Cuellar Mejia, 2013. "What Do Business Climate Indexes Teach Us About State Policy And Economic Growth?," Journal of Regional Science, Wiley Blackwell, vol. 53(2), pages 220-255, 05.
  3. Choi, Taelim & Robertson, John C. & Rupasingha, Anil, 2013. "High-growth firms in Georgia," Working Paper 2013-20, Federal Reserve Bank of Atlanta.
  4. Jed Kolko & David Neumark, 2010. "Do some enterprise zones create jobs?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(1), pages 5-38.
  5. Jeffrey Brinkman & Daniele Coen-Pirani & Holger Sieg, 2012. "Estimating a dynamic equilibrium model of firm location choices in an urban economy," Working Papers 12-26, Federal Reserve Bank of Philadelphia.
  6. Kolko, Jed, 2007. "Agglomeration and Co-Agglomeration of Services Industries," MPRA Paper 3362, University Library of Munich, Germany.
  7. Daria Burnes & David Neumark & Michelle J. White, 2011. "Fiscal Zoning and Sales Taxes: Do Higher Sales Taxes Lead to More Retailing and Less Manufacturing?," NBER Working Papers 16932, National Bureau of Economic Research, Inc.
  8. Jose Luis Groizard & Priya Ranjan & Jose Antonio Rodriguez-Lopez, 2012. "Trade Costs and Job Flows: Evidence from Establishment-Level Data," Working Papers 111208, University of California-Irvine, Department of Economics, revised Oct 2013.
  9. Daniel Hartley & T. William Lester, 2013. "The long-term employment impacts of gentrification in the 1990s," Working Paper 1307, Federal Reserve Bank of Cleveland.
  10. Lee, Yoonsoo, 2008. "Geographic redistribution of US manufacturing and the role of state development policy," Journal of Urban Economics, Elsevier, vol. 64(2), pages 436-450, September.
  11. Francesca Mazzolari & David Neumark, 2009. "Immigration and Product Diversity," NBER Working Papers 14900, National Bureau of Economic Research, Inc.
  12. Burnes, Daria & Neumark, David & White, Michelle J., 2012. "Fiscal Zoning, Sales Taxes, and Employment: Do Higher Sales Taxes Lead to More Jobs in Retailing and Fewer Jobs in Manufacturing?," IZA Discussion Papers 6383, Institute for the Study of Labor (IZA).
  13. Mazzolari, Francesca & Numark, David, 2009. "The Effects of Immigration on the Scale and Composition of Demand: A study of California establishments," MPRA Paper 19217, University Library of Munich, Germany.
  14. Mark J. Kutzbach, 2010. "Access to Workers or Employers? An Intra-Urban Analysis of Plant Location Decisions," Working Papers 10-21r, Center for Economic Studies, U.S. Census Bureau, revised Sep 2012.
  15. Zhang, Junfu & Zhao, Zhong, 2011. "Social-Family Network and Self-Employment: Evidence from Temporary Rural-Urban Migrants in China," IZA Discussion Papers 5446, Institute for the Study of Labor (IZA).
  16. Kameliia Petrova, 2012. "Sources of Employment Growth in the North Country," New York Economic Review, New York State Economics Association (NYSEA), vol. 43(1), pages 46-69.

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