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Business Dynamics in the National Establishment Time Series (NETS)/Leland Crane, Ryan Decker

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  • Leland Crane
  • Ryan Decker

Abstract

Business microdata have proven useful in a number of fields, but the main sources of comprehensive microdata are subject to significant confidentiality restrictions. A growing number of papers instead use a private data source seeking to cover the universe of U.S. business establishments, the National Establishment Time Series (NETS). Previous research documents the representativeness of NETS in terms of the distribution of employment and establishment counts across industry, geography, and establishment size. But there exists considerable need among researchers for microdata suitable for studying business dynamics---birth, growth, decline, and death. We evaluate NETS in terms of its ability to corroborate key insights from the business dynamics literature with a particular focus on the behavior of new and young firms. We find that NETS microdata exhibit patterns of business dynamics that are markedly different from official administrative sources, limiting the usefuln ess of NETS for studying these topics.

Suggested Citation

  • Leland Crane & Ryan Decker, 2019. "Business Dynamics in the National Establishment Time Series (NETS)/Leland Crane, Ryan Decker," Finance and Economics Discussion Series 2019-034, Board of Governors of the Federal Reserve System (U.S.).
  • Handle: RePEc:fip:fedgfe:2019-34
    DOI: 10.17016/FEDS.2019.034
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    File URL: https://www.federalreserve.gov/econres/feds/files/2019034pap.pdf
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    References listed on IDEAS

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    1. David Neumark & Junfu Zhang & Brandon Wall, 2007. "Employment Dynamics and Business Relocation: New Evidence from the National Establishment Time Series," Research in Labor Economics, in: Solomon W. Polachek & Olivier Bargain (ed.), Aspects of Worker Well-Being, volume 26, pages 39-83, Emerald Publishing Ltd.
    2. Keith Barnatchez & Leland Crane & Ryan Decker, 2017. "An Assessment of the National Establishment Time Series (NETS) Database," Finance and Economics Discussion Series 2017-110, Board of Governors of the Federal Reserve System (U.S.).
    3. Esteban Rossi-Hansberg & Pierre-Daniel Sarte & Nicholas Trachter, 2020. "Diverging Trends in National and Local Concentration," NBER Chapters, in: NBER Macroeconomics Annual 2020, volume 35, National Bureau of Economic Research, Inc.
    4. Ron S Jarmin & Javier Miranda, 2002. "The Longitudinal Business Database," Working Papers 02-17, Center for Economic Studies, U.S. Census Bureau.
    5. Ryan Decker & John Haltiwanger & Ron S. Jarmin & Javier Miranda, 2018. "Changing Business Dynamism and Productivity : Shocks vs. Responsiveness," Finance and Economics Discussion Series 2018-007, Board of Governors of the Federal Reserve System (U.S.).
    6. Bethany DeSalvo & Frank F. Limehouse & Shawn D. Klimek, 2016. "Documenting the Business Register and Related Economic Business Data," Working Papers 16-17, Center for Economic Studies, U.S. Census Bureau.
    7. Cho ,Clare & W. McLaughlin, Patrick & Zeballos, Eliana & Kent, Jessica & Dicken, Chris, 2019. "Capturing the Complete Food Environment with Commercial Data: A Comparison of TDLinx, ReCount, and NETS Databases," Technical Bulletins 288291, United States Department of Agriculture, Economic Research Service.
    8. Alon, Titan & Berger, David & Dent, Robert & Pugsley, Benjamin, 2018. "Older and slower: The startup deficit’s lasting effects on aggregate productivity growth," Journal of Monetary Economics, Elsevier, vol. 93(C), pages 68-85.
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    Cited by:

    1. Ezra Oberfield & Esteban Rossi-Hansberg & Nicholas Trachter & Pierre-Daniel Sarte, 2019. "Plants in Space," 2019 Meeting Papers 1507, Society for Economic Dynamics.
      • Ezra Oberfield & Esteban Rossi-Hansberg & Pierre-Daniel G. Sarte & Nicholas Trachter, 2020. "Plants in Space," Working Paper 20-05, Federal Reserve Bank of Richmond.
      • Ezra Oberfield & Esteban Rossi-Hansberg & Pierre-Daniel Sarte & Nicholas Trachter, 2020. "Plants in Space," NBER Working Papers 27303, National Bureau of Economic Research, Inc.
      • Oberfield, Ezra & Rossi-Hansberg, Esteban & Sarte, Pierre-Daniel & Trachter, Nicholas, 2020. "Plants in Space," CEPR Discussion Papers 14823, C.E.P.R. Discussion Papers.
    2. Sudheer Chava & Alexander Oettl & Manpreet Singh, 2019. "Does a One-Size-Fits-All Minimum Wage Cause Financial Stress for Small Businesses?," NBER Working Papers 26523, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    Business Microdata; Economic Measurement; Entrepreneurship; Firm Dynamics; High-Growth Firms; Job Flows;
    All these keywords.

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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