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Nonresponse Bias and Business Turnover Rates: The Case of the Characteristics of Business Owners Survey

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  • Holmes, Thomas J
  • Schmitz, James A, Jr

Abstract

This paper considers the problem of nonresponse in the Characteristics of Business Owners Survey. It presents a novel approach for assessing the extent to which nonresponse is nonignorable. The method exploits the fact that all the owners of multiowner firms were surveyed. The paper uses information received from a responding owner to derive inferences about a nonresponding owner of the same firm. It provides evidence that nonrespondents are more likely than respondents to discontinue ownership. The paper estimates a variety of models of the joint process of ownership survival and survey response and quantifies the effects of ignoring nonresponse.

Suggested Citation

  • Holmes, Thomas J & Schmitz, James A, Jr, 1996. "Nonresponse Bias and Business Turnover Rates: The Case of the Characteristics of Business Owners Survey," Journal of Business & Economic Statistics, American Statistical Association, vol. 14(2), pages 231-241, April.
  • Handle: RePEc:bes:jnlbes:v:14:y:1996:i:2:p:231-41
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    Cited by:

    1. Brian Headd, 2001. "Business Success: Factors Leading to Surviving and Closing Successfully," Working Papers 01-01, Center for Economic Studies, U.S. Census Bureau.
    2. van den Berg, Gerard J & Lindeboom, Maarten & Dolton, Peter J, 2004. "Survey non-response and unemployment duration," Working Paper Series 2004:12, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Jensen, Nathan M. & Li, Quan & Rahman, Aminur, 2007. "Heard melodies are sweet, but those unheard are sweeter : understanding corruption using cross-national firm-level surveys," Policy Research Working Paper Series 4413, The World Bank.
    4. Astebro, Thomas & Bernhardt, Irwin, 2003. "Start-up financing, owner characteristics, and survival," Journal of Economics and Business, Elsevier, vol. 55(4), pages 303-319.

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