Essay, Research Paper: Longitudinal Establishment Datasets

Government

Free Government research papers were donated by our members/visitors and are presented free of charge for informational use only. The essay or term paper you are seeing on this page was not produced by our company and should not be considered a sample of our research/writing service. We are neither affiliated with the author of this essay nor responsible for its content. If you need high quality, fresh and competent research / writing done on the subject of Government, use the professional writing service offered by our company.

The relatively recent development of longitudinal establishment datasets has
generated quite a bit of excitement in both the academic and the statistical
communities. From this literature, we have learned that there is a large amount
of volatility at the individual establishment level that underlies the smooth
time series of aggregate employment growth. The descriptive statistics coming
out of this literature have not only stimulated the review and updating of
existing labor market theories, but have also stimulated the U.S. statistical
agencies to develop their administrative datasets in such a way so as to produce
longitudinal job flow statistics. The purpose of this paper is to use a new
longitudinal database from the Bureau of Labor Statistics (BLS) in order to
examine how establishment births and deaths contribute to job creation, job
destruction, and net employment growth at different frequencies of measurement.
Despite all that we have learned about the labor market from the existing job
flows literature, the conclusions that can be drawn from these studies are
somewhat limited. First, almost all of the existing work using U.S. data has
been restricted to the manufacturing sector. Recent work by several authors has
illustrated how job creation and job destruction in manufacturing may not be
representative of the entire U.S. economy. 1 A second limitation is that most of
the existing empirical work on job flows, either by choice or by necessity, is
based upon data that excludes the smallest establishments. 2 Since most
establishment births and deaths are quite small, at least in the short run, we
are thus unsure how these births and deaths influence employment growth. While
data that focuses on large establishments will cover most employment, an
analysis of job flows depends on the magnitude of employment flows at continuing
establishments relative to the incidence and average size of establishment
births and deaths. The longitudinal database introduced in this paper is not
subject to either of these limitations. The microdata upon which this paper is
based are the unemployment insurance reports that 1 The studies by Davis and
Haltiwanger (1990, 1992), Davis, Haltiwanger, and Schuh (1993, 1996), and Dunne,
Roberts and Samuelson (1988, 1989a, 1989b) have all used manufacturing data
housed at the Center for Economic Studies at the U.S. Census Bureau. Recent work
with unemployment insurance data by Anderson and Meyer (1994), Foote (1997),
Lane, Stevens, and Burgess (1996), and Leonard (1987) has looked at other
sectors of the economy. 2 Small plants with less than five employees are not in
the sample frame of the Annual Survey of Manufactures (ASM) data used by Davis,
Haltiwanger, and Schuh (1996); these plants represent about one-third of all
plants and about 4 to 7 percent of employment. Using the Census of Manufactures,
Dunne, Roberts and Samuelson (1989a) exclude manufacturing plants with less than
5 employees; these excluded plants account for between 30 and 40 percent of all
plants but represent only one percent of employment. The firm sample used by
Anderson and Meyer (1994) includes only firms with at least 50 employees; this
sample accounts for 83 percent of employment.

Bibliography
Anderson, Patricia M. and Bruce D. Meyer. 1994. “The Extent and
Consequences of Job Turnover.” Brookings Papers on Economic Activity, pp.
177-236. Audretsch, David B. and Talat Mahmood. 1994. “The Rate of Hazard
Confronting New Firms and Plants in U.S. Manufacturing.” Review of Industrial
Organization, pp. 41-56. Baldwin, John R. and Paul K. Gorecki. 1989.
“Measuring Firm Entry and Exit With Panel Data.” Proceedings of the
Statistics Canada Symposium on Analysis of Data in Time. Baldwin, John R. and
Paul K. Gorecki. 1991. “Firm Entry and Exit in the Canadian Manufacturing
Sector, 1970-1982.” Canadian Journal of Economics, pp. 300-323. Boeri, Tito.
1996. “Is Job Turnover Countercyclical?” Journal of Labor Economics, pp.
603-625. Boeri, Tito and Lutz Bellmann. 1995. “Post-entry Behaviour and the
Cycle: Evidence from Germany.” International Journal of Industrial
Organization, pp. 483-500. Boeri, Tito and Ulrich Cramer. 1992. “Employment
Growth, Incumbents, and Entrants.” International Journal of Industrial
Organization, pp. 545-565. Brüderl, Josef and Rudolf Schüssler. 1990.
“Organizational Mortality: The Liabilities of Newness and Adolescence.”
Administrative Science Quarterly, pp. 530-547. Brüderl, Josef, Peter Preisendörfer,
and Rolf Ziegler. 1992. “Survival Chances of Newly Founded Business
Organizations.” American Sociological Review, pp. 227-242. Davis, Steven J.
and John C. Haltiwanger. 1990. “Gross Job Creation and Destruction:
Microeconomic Evidence and Macroeconomic Implications.” NBER Macroeconomics
Annual, pp. 123-168. Davis, Steven J. and John C. Haltiwanger. 1992. “Gross
Job Creation, Gross Job Destruction, and Employment Reallocation.” Quarterly
Journal of Economics, pp. 819-863. Davis, Steven J. and John C. Haltiwanger.
1995. “Measuring Gross Worker and Job Flows.” NBER Working Paper #5133.
Davis, Steven J., John C. Haltiwanger, and Scott Schuh. 1993. “Small Business
and Job Creation: Dissecting the Myth and Reassessing the Facts.” NBER Working
Paper #4492. Davis, Steven J., John C. Haltiwanger, and Scott Schuh. 1996. Job
Creation and Destruction. MIT Press. Dunne, Timothy, Mark J. Roberts, and Larry
Samuelson. 1988. “Patterns of Firm Entry and Exit in U.S. Manufacturing
Industries.” Rand Journal of Economics, pp. 495-515.
0
0
Good or bad? How would you rate this essay?
Help other users to find the good and worthy free term papers and trash the bad ones.
Like this term paper? Vote & Promote so that others can find it

Get a Custom Paper on Government:

Free papers will not meet the guidelines of your specific project. If you need a custom essay on Government: , we can write you a high quality authentic essay. While free essays can be traced by Turnitin (plagiarism detection program), our custom written papers will pass any plagiarism test, guaranteed. Our writing service will save you time and grade.




Related essays:

0
0
Legalization of medical marijuana This act may be cited as the “ legalization of marijuana” Sec. 1 This bill will be for the well being of the pain stricken patients in our nation's hospitals, a docto...
2569 views
0 comments
0
0
The Prince, written in 1513 by Niccolo Machiavelli is regarded as one of the most crucial yet controversial works in the field of political science. It holds Machiavelli's observations and reflections...
2376 views
0 comments
0
0
Government / Malthus And Africa
Africa, being a third world country with much economic oppression, is currently being debated in the General Assembly about whether or not it should have population control. Many experts believe that,...
2172 views
0 comments
0
0
Government / Marilyn Manson
Marilyn Manson is a name that has been a thorn in the side of society as a moral and ethical issue for the parents and kids of the generation “X”. He is one of the most controversial artists in the wo...
2160 views
0 comments
0
0
Government / Marines
Being a Marine is the most challenging and rewarding responsibility a person could face. It is a known fact that the Marines have the toughest and most difficulty training course in the world. Men and...
2471 views
0 comments