About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

130 Monthly Lab. Rev. 3 (2007)
Business Employment Dynamics Data: Survival and Longevity, II

handle is hein.journals/month130 and id is 843 raw text is: I9\'/UUU~JU~L~A'/uUwu'JuLJ~) Business Employment Dynamics data: survival and longevity, II A study that extends previous research on the longevity of businesses shows that survival decreases at a decreasing rate; establishments that manage to survive the crucial 4-year period after their birth have a better chance of surviving longer and experiencing employment growth Amy E. Knaup and Merissa C. Piazza Amy E. Knaup is a Ph.D. candidate in economics at the University of Maryland, College Park, Maryland; Merissa C. Piazza is an economist in the Office of Employment and Unemployment Statistics, Bureau of Labor Statistics. E-mail: piazza.merissa@bls. gov T his study is an extension of a research summary published in the Review in 2005.1 That piece examined survival rates from a cohort of establishments from the Bureau of Labor Statistics (BLS) Quar- terly Census of Employment and Wages (QCEW) program over a 4-year period. The study presented here extends the previous cohort an additional 3 years to create a 7- year survival analysis. Data sources The QCEW program contains information on 8.9 million U.S. business establishments in both the public and private sector. These monthly business establishment data are com- piled on a quarterly basis for State unemploy- ment insurance tax purposes and are edited and submitted to the BLS. A Federal-State cooperative venture between the BLS and the State Workforce Agencies, the QCEW pro- gram collects information covering approxi- mately 98 percent of nonfarm payroll employ- ment in the United States. Data generated by the program serve as the sampling frame for a range of BLS establishment surveys and as a benchmark for the Current Employment Sta- tistics survey. Outside researchers use QCEW microdata to investigate topics in the field of labor economics, and such data are the largest single input to the Bureau of Economic Anal- ysis personal income accounting program. QCEW program data also are used to generate gross job flows in the Business Employment Dynamics (BED) data series. To construct the BLS longitudinal data- base, analysts link the data across quarters, using unique identifiers to track establish- ments, even when their ownership changes. The QCEW program has linked data from the first quarter of 1990 through the most current quarter; the data usually are avail- able 7 months after the end of the reference quarter. The coverage and frequency of the data are unique in the Federal statistical system in that they allow tracking of the startup, growth, and failure of a particular. establishment concurrently with the timing of those events. The program contains estab- lishment-level data (that is, data relating to a specific location). Therefore, one can observe various characteristics of each establishment, such as the State, county, and industry in which it operates; its age, predecessors, and successors; its total quarterly wages; and its monthly employment. The BED data series takes advantage of the QCEW microdata by calculating gross job flows. BED data reveal the level of em- ployment changes each quarter due to open- ings, closings, expansions, and contractions of businesses. These four categories illus- trate the vast number of business and em- Monthly Labor Review - September 2007 3

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most