The Economic Census (EC) collects detailed information on the class of customers served by establishments'for example, the share of an establishment's sales to other businesses or to government entities'for a subset of sectors in the economy. In this paper, we evaluate the data from the 'Class of Customer' question from the EC, with a particular focus on sales to the government. These data have seldom been used in empirical research and are unique in that they enable researchers to link establishment-level Census data with information on government procurement.
We compile and analyze large volumes of publicly available tabulated data about the class of customer question over time. Using these data, we document three main findings. First, total sales to government from establishments covered by the class of customer question account for approximately 4 percent of GDP'just under half of total government procurement as measured in the national accounts. Second, the sectoral distribution of government expenditure is significantly different from that of private sector spending. Certain industries, such as Construction and Professional, Scientific, and Technical Services, account for a much larger share of government expenditure relative to private sector expenditure. Third, sales to the government make up a substantial portion of total sales in several sectors'for instance, 70 percent in Facilities Support Services, 30 percent in Waste Treatment and Disposal, and 17 percent in Construction. Finally, we use the microdata to examine nonresponse rates to the class of customer question across establishments based on the number of employees.
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MEASURING 'FACTORYLESS' MANUFACTURING: EVIDENCE FROM U.S. SURVEYS
August 2013
Working Paper Number:
CES-13-44
'Factoryless' manufacturers, as defined by the U.S. OMB, perform underlying entrepreneurial components of arranging the factors of production but outsource all of the actual transformation activities to other specialized units. This paper describes efforts to measure 'factoryless' manufacturing through analyzing data on contract manufacturing services (CMS). We explore two U.S. firm surveys that report data on CMS activities and discuss challenges with identifying and collecting data on entities that are part of global value chains.
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Measuring the Electronic Economy: Current Status and Next Steps
June 2000
Working Paper Number:
CES-00-10
The recent growth of consumer retailing over the Internet draws attention to the electronic economy. However, businesses also conduct other business processes over computer networks, and many have been doing so for some time. Uses of computer networks attract attention because of assertions that they lead to new products and services, new delivery methods, streamlined or re-engineered business processes, new business structures, and enhanced business performance. These changes, in turn, potentially affect the performance of the entire economy, including economic growth, productivity, prices, employment, trade, and the structures of businesses, regions, and markets. Evaluating these assertions, and their effects on economic performance, requires solid statistical information about the electronic economy. This paper develops principles for identifying information critical to measuring the size and evaluating the potential effects of the electronic economy, relates that information to current data collection programs, and notes relevant measurement issues. Some of the required information about the electronic economy can be collected by adding questions to existing surveys, making the scope of existing surveys consistent, or developing new surveys. However, many key pieces of information pose significant challenges to economic measurement. While some of those challenges are specific to the electronic economy, others are long-standing ones. Interest in the electronic economy highlights the importance of continuing attempts to address these challenges. Improving and enhancing the statistical system to provide information about the electronic economy, therefore, would also substantially improve the baseline information available for evaluating the performance of the entire economy.
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Nonemployer Statistics by Demographics (NES-D): Using Administrative and Census Records Data in Business Statistics
January 2019
Working Paper Number:
CES-19-01
The quinquennial Survey of Business Owners or SBO provided the only comprehensive source of information in the United States on employer and nonemployer businesses by the sex, race, ethnicity and veteran status of the business owners. The annual Nonemployer Statistics series (NES) provides establishment counts and receipts for nonemployers but contains no demographic information on the business owners. With the transition of the employer component of the SBO to the Annual Business Survey, the Nonemployer Statistics by Demographics series or NES-D represents the continuation of demographics estimates for nonemployer businesses. NES-D will leverage existing administrative and census records to assign demographic characteristics to the universe of approximately 24 million nonemployer businesses (as of 2015). Demographic characteristics include key demographics measured by the SBO (sex, race, Hispanic origin and veteran status) as well as other demographics (age, place of birth and citizenship status) collected but not imputed by the SBO if missing. A spectrum of administrative and census data sources will provide the nonemployer universe and demographics information. Specifically, the nonemployer universe originates in the Business Register; the Census Numident will provide sex, age, place of birth and citizenship status; race and Hispanic origin information will be obtained from multiple years of the decennial census and the American Community Survey; and the Department of Veteran Affairs will provide administrative records data on veteran status.
The use of blended data in this manner will make possible the production of NES-D, an annual series that will become the only source of detailed and comprehensive statistics on the scope, nature and activities of U.S. businesses with no paid employment by the demographic characteristics of the business owner. Using the 2015 vintage of nonemployers, initial results indicate that demographic information is available for the overwhelming majority of the universe of nonemployers. For instance, information on sex, age, place of birth and citizenship status is available for over 95 percent of the 24 million nonemployers while race and Hispanic origin are available for about 90 percent of them. These results exclude owners of C-corporations, which represent only 2 percent of nonemployer firms. Among other things, future work will entail imputation of missing demographics information (including that of C-corporations), testing the longitudinal consistency of the estimates, and expanding the set of characteristics beyond the demographics mentioned above. Without added respondent burden and at lower imputation rates and costs, NES-D will meet the needs of stakeholders as well as the economy as a whole by providing reliable estimates at a higher frequency (annual vs. every 5 years) and with a more timely dissemination schedule than the SBO.
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The U.S. Multinational Advantage during the 2008-2009 Financial Crisis: The Role of Services Trade
January 2026
Working Paper Number:
CES-26-04
We document the augmenting role of services exports in U.S. multinationals' goods-export growth during the global financial crisis. Using newly linked data on U.S. firms' foreign sales of goods and services and a triple-difference identification strategy combined with propensity-score matching, we find that compared to multinationals that only export goods (mono-exporters), multinationals that also export services to the same destination (bi-exporters) experienced higher goods-export growth. This result is driven by sales of intellectual property rights related to industrial processes (e.g., patents, trademarks). We also find higher growth in bi-exporters' foreign affiliate services sales and domestic employment in services sectors. These results reveal a pivotal role of services exports in supporting foreign demand for U.S. goods during the crisis.
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Documenting the Business Register and Related Economic Business Data
March 2016
Working Paper Number:
CES-16-17
The Business Register (BR) is a comprehensive database of business establishments in the United States and provides resources for the U.S. Census Bureau's economic programs for sample selection, research, and survey operations. It is maintained using information from several federal agencies including the Census Bureau, Internal Revenue Service, Bureau of Labor Statistics, and the Social Security Administration. This paper provides a detailed description of the sources and functions of the BR. An overview of the BR as a linking tool and bridge to other Census Bureau data for additional business characteristics is also given.
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The Characteristics of Business Owners Database, 1992
May 1999
Working Paper Number:
CES-99-08
This report describes the Characteristics of Business Owners (CBO), 1992 microdata available to researchers at the Center for Economic Studies and the CBO survey. The Bureau of the Census has conducted the 1982, 1987, and 1992 CBOs for the U.S. Small Business Administration, the Minority Business Development Agency, and the general public. For the 1992 CBO, there were three surveys, a sole proprietor survey, an owner survey for each owner in partnerships and S corporations, and a firm survey for each partnership and S corporation. For database purposes, the owner questions on the sole proprietors survey and owner survey were merged, and the firm questions on the sole proprietors survey and firm survey were merged. The owner database has 116,589 records, and the firm survey has 78,147 records. The CBO reports on owners about their background such as owner type (race, and ethnicity), age, education, work experience, veteran status, etc. The CBO reports on firms (with and without employees) about their economic details such as industry, financing, home-based, exporting, franchising, profits, etc. In addition, the CBO was conducted in 1996 on firms in existence in 1992 allowing for some survivability analysis. The CBO over samples women and minority owners to allow researchers to more reliably study these owners. This survey is an extension of the Survey of Minority-Owned Business Enterprises (SMOBE) and Survey of Women-Owned Businesses (WOB) within the economic census. The CBO is available as a report, special tabulations, or microdata for approved researchers.
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A Guide to the MEPS-IC Government List Sample Microdata
September 2011
Working Paper Number:
CES-11-27
The Medical Expenditure Panel Survey-Insurance Component (MEPS-IC) is conducted to provide nationally representative estimates on employer sponsored health insurance. MEPSIC data are collected from private sector employers, as well as state and local governments. While similar information is gathered from these two sectors, differences in the survey process exist. The goal of this paper is to provide details on the public sector including types of state and local government employers, sample design, general information on the data collected in the MEPS-IC, and additional sources of information.
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U.S. Productivity and Electronic Processes in Manufacturing
October 2001
Working Paper Number:
CES-01-11
Recent studies argue that the use of information technology is a significant source of U.S. productivity growth. Official U.S. data on this use have been scarce. New official data on the use of electronic business processes (business processes such as procurement, payroll, inventory, etc.,conducted over computer networks) in the manufacturing sector of the United States were recently released. Preliminary estimates based on these data are consistent with some results in the literature. However, they also raise questions requiring additional detailed micro data analysis.
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E-Tailing and its Prospects: Great Expectations Reconsidered
July 2006
Working Paper Number:
CES-06-16
This paper attributes slower than predicted growth in e-commerce retailing to four factors: consumer resistance; the ability of traditional retailers to become multi-channel sellers; prudent official survey and classification practices; and perhaps the limited range of 'pure-play' business models (i.e., retail models that rely mainly on electronic sales). Based on responses to the Census Bureau's Monthly Retail Trade Survey (MRTS) in the five fourth quarter periods from 2001 to 2005, the paper finds that e-commerce has claimed a small but rapidly growing share of U.S. retailing markets; and that pure play companies are still important drivers of this process. However, it also finds that the capacity of pure-play companies to continue in this role may be nearing its limits, and that the rate of continued growth in e-commerce retailing may depend on the business decisions of large, multi-channel sellers. Qualified researchers can access MRTS-based quarterly e-commerce data for 2001-2005 at the Census Bureau's Regional Data Centers.
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The Effects of Industry Classification Changes on US Employment Composition
June 2018
Working Paper Number:
CES-18-28
This paper documents the extent to which compositional changes in US employment from 1976 to 2009 are due to changes in the industry classification scheme used to categorize economic
activity. In 1997, US statistical agencies began implementation of a change from the Standard Industrial Classification System (SIC) to the North American Industrial Classification System (NAICS). NAICS was designed to provide a consistent classification scheme that consolidated declining or obsolete industries and added categories for new industries. Under NAICS, many activities previously classified as Manufacturing, Wholesale Trade, or Retail Trade were re-classified into the Services sector. This re-classification resulted in a significant shift of measured activities across sectors without any change in underlying economic activity. Using a newly developed establishment-level database of employment activity that is consistently classified on a NAICS basis, this paper shows that the change from SIC to NAICS increased the share of Services employment by approximately 36 percent. 7.6 percent of US manufacturing employment, equal to approximately 1.4 million jobs, was reclassified to services. Retail trade and wholesale trade also experienced a significant reclassification of activities in the transition.
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