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The Contribution Of Establishment Births And Deaths To Employment Growth

April 1998

Written by: James R. Spletzer

Working Paper Number:

CES-98-05

Abstract

The purpose of this paper is to examine how establishment births and deaths contribute to job creation, job destruction, and net employment growth at different frequencies of measurement. The longitudinal data are constructed from quarterly unemployment insurance microdata, and are essentially a census of establishments in all industries. Defining establishment births and deaths turns out to be an exercise in how to use cross-sectional administrative data for longitudinal research purposes. The analysis of job flows indicates that the frame is relatively small but certainly non-trivial, whereas births and deaths account for roughly half of all jobs created and destroyed on a triennial time frame. Net Employment Growth

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economist, payroll, quarterly, enterprise, growth, employed, labor, accounting, sector, longitudinal, employment growth, estimates employment, job, establishment, employment data, hiring, employment flows, occupation, demography, clerical, labor statistics, employment count, layoff, employment effects, measures employment

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Bureau of Labor Statistics, Annual Survey of Manufactures, Internal Revenue Service, Center for Economic Studies, Employer Identification Number, Census Bureau Center for Economic Studies, Retail Trade

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