IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Using worker flows in the analysis of establishment turnover : evidence from German administrative data

  • Hethey, Tanja

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

  • Schmieder, Johannes F.

"Economists have long been interested in the determinants and components of job creation and destruction. In many countries administrative datasets provide an excellent source for detailed analysis on a fine and disaggregate level. However, administrative datasets are not without problems: restructuring and relabeling of firms is often poorly measured and can potentially create large biases. We provide evidence of the extent of this bias and provide a new solution to deal with it using the German Establishment History Panel (BHP). While previous research has relied on the first and last appearance of the establishment identifier (EID) to identify openings and closings, we improve on this approach using a new dataset containing all worker flows between establishments in Germany. This allows us to credibly identify establishment births and deaths from 1975 to 2004. We show that the misclassification bias of using only the EID is very severe: Only about 35 to 40 percent of new and disappearing EIDs with more than 3 employees correspond unambiguously to real establishment entries and exits. Among larger establishments misclassification is even more common. We show that many new establishment IDs appear to be 'Spin-Offs' and these have become increasingly more common over time. We then demonstrate that using only EID entries and exits may dramatically overstate, by as much as 100 percent, the role of establishment turnover for job creation and destruction. Furthermore correcting job creation and destruction measures for spurious EID entries and exits reduces these measures and aligns them closer with the business cycle." (Author's abstract, IAB-Doku) ((en))

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://doku.iab.de/fdz/reporte/2010/MR_06-10-EN.pdf
Download Restriction: no

Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series FDZ Methodenreport with number 201006_en.

as
in new window

Length: 43 pages
Date of creation: 19 Aug 2010
Date of revision:
Publication status: published als: NBER working paper : 19730
Handle: RePEc:iab:iabfme:201006_en
Contact details of provider: Postal: Regensburger Str. 104, D-90327 Nürnberg
Phone: 0911/179-1752
Fax: 0911/179-1728
Web page: http://fdz.iab.de/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Lars Vilhuber, 2004. "Adjusting imperfect data: overview and case studies," Longitudinal Employer-Household Dynamics Technical Papers 2004-05, Center for Economic Studies, U.S. Census Bureau.
  2. Abowd, John M. & Vilhuber, Lars, 2005. "The Sensitivity of Economic Statistics to Coding Errors in Personal Identifiers," Journal of Business & Economic Statistics, American Statistical Association, vol. 23, pages 133-152, April.
  3. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1992. "Earnings losses of displaced workers," Working Paper Series, Macroeconomic Issues 92-28, Federal Reserve Bank of Chicago.
  4. Beckstead, Desmond & Baldwin, John R. & Girard, Andree, 2002. "The Importance of Entry to Canadian Manufacturing with an Appendix on Measurement Issues," Analytical Studies Branch Research Paper Series 2002189e, Statistics Canada, Analytical Studies Branch.
  5. Schmieder, Johannes F. & Wachter, Till von & Bender, Stefan, 2010. "The long-term impact of job displacement in Germany during the 1982 recession on earnings, income, and employment," IAB Discussion Paper 201001, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  6. John M. Abowd & Patrick Corbel & Francis Kramarz, 1996. "The Entry and Exit of Workers and the Growth of Employment: An Analysis of French Establishments," NBER Working Papers 5551, National Bureau of Economic Research, Inc.
  7. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1993. "Long-term earnings losses of high-seniority displaced workers," Economic Perspectives, Federal Reserve Bank of Chicago, issue Nov, pages 2-20.
  8. 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.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:iab:iabfme:201006_en. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IAB, Geschäftsbereich Dokumentation und Bibliothek)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.