New Census Bureau Data for Entrepreneurship Research

1
New Census Bureau Data forEntrepreneurship
Research

• Ron S JarminUS Census BureauOECDNovember 19,
  2007This report is released to inform
  interested parties of ongoing research and to
  encourage discussion of work in progress. The
  views expressed are not necessarily those of the
  U.S. Census Bureau.

2
Introduction

• Statistical Agencies, such as the Census Bureau,
  produce a wealth of information about the
  business population.
• Publicly available data, however, have
  shortcomings for entrepreneurship research.
• Insufficient attention to dynamics
• No explicit role for business age

3
Raw materials for better data mostly already exist

• Survey and Administrative Micro Data sitting in
  most statistical agencies contain much of whats
  needed.
• But need substantial value added before useful to
  skilled micro data researchers or ready for use
  in public release tabulations.

4
Census Bureau Micro Data Infrastructure for
Entrepreneurship Research

• Longitudinal Business Database (LBD)
• Integrated Longitudinal Business Database (ILBD
  LBD Self-employed)
• LEHD Linked employer-employee data
• Economic Census and Survey data

5
New public release products being developed from
the LBD

• Business Demography Series (BDS)
• Public release tabulations (follow EIP protocols
  where appropriate)
• Developed with support from the Kauffman
  Foundation
• First tables to be released soon.
• Synthetic LBD
• Releasable micro data based on multiple
  imputation
• Developed with support from the National Science
  Foundation
• Much work needed before release

6
The BDS

• New Census public use files from LBD/BR (support
  from Kauffman Foundation)
• Coverage 1976-2005
• CBP Universe
• Establishment level with firm characteristics
• Focus on both business and employment dynamics
• Unique Features
• Long Time Series
• Firm and Establishment Age
• Interactions with Firm and Establishment Size

7
The BDS Current State

• Statistics
• Establishment and Firm Births, Deaths and
  Continuers
• Job creation
• From births and expansions
• Job destruction
• From deaths and contractions
• Excess Job Reallocation
• By categories
• Firm Age
• Firm Size
• Industrial Sector
• Geography

8
The BDS

• Other tables planned (e.g. high growth firms etc)
• Comparisons and Measurement Issues
• Differences with CBP
• Differences with BED and QCEW
• Measurement of Size (vs. SUSB)
• Treatment of Outliers

9
Distribution of Firms, Establishments and
Employment by Firm Size
10
Distribution of Firms, Establishments and
Employment by Firm Age
11
The BDS Net Job Growth by Firm Size and Age
12
The BDS Net Job Growth by Firm Size and Age
13
The BDS Net Employment by Firm Size and Age
14
The BDS Net Employment by Firm Size and Age
15
High Growth Firms
16
Defining Gazelles

• What is larger context?
• Identifying gazelles is only first step
• Job creation and destruction relative to
  old/large?
• Job creation in the wider economy?
• Tracking over a longer time horizon. What happens
  to them? Dont they get eaten by lions?
• Other Questions and Challenges
• Role in Business cycle ? long time series
• Wage dynamics ? linking to other data
• What makes them successful ? connections to
  supply chain

17
Summary

• BDS will be a rich source of information to
  examine
• Business demography
• Creative destruction/innovation
• Business cycle dynamics
• Role of cohorts, young/small vs. large/old
• Labor market dynamics

18
But

• Still much more limited than access to micro
  data.
• Synthetic LBD will hopefully prove useful to a
  broad range of researchers including those
  wishing to do international comparisons.

19
CBP In-Scope

• Establishments
• This series excludes governmental establishments
  except for liquor stores (SIC 592), wholesale
  liquor establishments (SIC 518), depository
  institutions (SIC 60), federal and federally
  sponsored credit agencies (SIC 611), and
  hospitals (SIC 806).

• Sectors
• agricultural services, forestry, and fishing
• mining
• construction
• manufacturing
• transportation and public utilities
• wholesale trade
• retail trade
• finance, insurance, and real estate
• services.

• Employment
• full- and part-time March 12 employees.
• Included are employees on paid sick
  leave,holidays, and vacations
• not included are proprietors and partners of
  unincorporated businesses.

• Exclusions
• self-employed people,
• domestic service workers,
• railroad employees,
• agricultural production workers,
• most government employees,
• and employees on ocean-borne vessels or in
  foreign countries.

• Payroll
• Total payroll includes all forms of compensation,
  such as salaries, wages, reported tips,
  commissions, bonuses, vacation allowances,
  sick-leave pay, employee contributions to
  qualified pension plans, and the value of taxable
  fringe benefits.