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

Author

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  • Neumark, David

    () (University of California, Irvine)

  • Zhang, Junfu

    () (Clark University)

  • Wall, Brandon

    () (Stanford University)

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.

Suggested Citation

  • Neumark, David & Zhang, Junfu & Wall, Brandon, 2005. "Employment Dynamics and Business Relocation: New Evidence from the National Establishment Time Series," IZA Discussion Papers 1774, Institute for the Study of Labor (IZA).
    • Handle: RePEc:iza:izadps:dp1774
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    References listed on IDEAS

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    1. 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 211-224, June.
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    3. 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, March.
    4. 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.
    5. Baldwin, John & Picot, Garnett, 1995. "Employment Generation by Small Producers in the Canadian Manufacturing Sector," Small Business Economics, Springer, vol. 7(4), pages 317-331, August.
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    8. Timothy Dunne & Mark J. Roberts & Larry Samuelson, 1989. "The Growth and Failure of U. S. Manufacturing Plants," The Quarterly Journal of Economics, Oxford University Press, vol. 104(4), pages 671-698.
    9. 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.
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    11. 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.
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    More about this item

    Keywords

    business relocation; job creation; job destruction; employment dynamics;

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
    • L0 - Industrial Organization - - General

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