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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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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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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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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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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The Census of Construction Industries Database
August 1998
Working Paper Number:
CES-98-10
The Census of Construction Industries (CCI) is conducted every five years as part of the quinquennial Economic Census. The Census of Construction Industries covers all establishments with payroll that are engaged primarily in contract construction or construction on their own account for sale as defined in the Standard Industrial Classification Manual. As previously administered, the CCI is a partial census including all multi-establishments and all establishments with payroll above $480,000, one out of every five establishments with payroll between $480,000 and $120,000 and one out of eight remaining establishments. The resulting database contains for each year approximately 200,000 establishments in the building construction, heavy construction and special trade construction industrial classifications. This paper compares the content, survey procedures, and sample response of the 1982, 1987 and 1992 Censuses of Construction.
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Small Business Pulse Survey Estimates by Owner Characteristics and Rural/Urban Designation
September 2021
Working Paper Number:
CES-21-24
In response to requests from policymakers for additional context for Small Business Pulse Survey (SBPS) measures of the impact of COVID-19 on small businesses, we researched developing estimates by owner characteristics and rural/urban locations. Leveraging geographic coding on the Business Register, we create estimates of the effect of the pandemic on small businesses by urban and rural designations. A more challenging exercise entails linking micro-level data from the SBPS with ownership data from the Annual Business Survey (ABS) to create estimates of the effect of the pandemic on small businesses by owner race, sex, ethnicity, and veteran status. Given important differences in survey design and concerns about nonresponse bias, we face significant challenges in producing estimates for owner demographics. We discuss our attempts to meet these challenges and provide discussion about caution that must be used in interpreting the results. The estimates produced for this paper are available for download. Reflecting the Census Bureau's commitment to scientific inquiry and transparency, the micro data from the SBPS will be available to qualified researchers on approved projects in the Federal Statistical Research Data Center network.
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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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Concentration Levels in the U.S. Advertising and Marketing Services Industry: Myth vs. Reality
August 2009
Working Paper Number:
CES-09-16
We analyze changes in concentration levels in the U.S. Advertising and Marketing Services industry using data from the U.S. Census Bureau's quinquennial Economic Census and the Service Annual Survey. Heretofore largely ignored, these data allow us to redress some of the measurement problems surrounding estimates found in the existing literature Firm level concentration as measured by the Herfindahl-Hirschman Index varies across the sectors comprising the industry, but all are within the range generally considered as indicative of a competitive industry. At the holding company level, the four largest organizations account for about a quarter of the industry's total revenue, a share lower by an order of magnitude than that frequently cited in the trade press.
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The Business Dynamics Statistics: Describing the Evolution of the U.S. Economy from 1978-2019
October 2021
Working Paper Number:
CES-21-33
The U.S. Census Bureau's Business Dynamics Statistics (BDS) provide annual measures of how many businesses begin, end, or continue their operations and the associated job creation and destruction. The BDS is a valuable resource for information on the U.S. economy because of its long time series (1978-2019), its complete coverage (all private sector, non-farm U.S. businesses), and its tabulations for both individual establishments and the firms that own and control them. In this paper, we use the publicly available BDS data to describe the dynamics of the economy over the past 40 years. We highlight the increasing concentration of employment at old and large firms and describe net job creation trends in the manufacturing, retail, information, food/accommodations, and healthcare industry sectors. We show how the spatial distribution of employment has changed, first moving away from the largest cities and then back again. Finally, we show long-run trends for a group of industries we classify as high-tech and explore how the share of employment at small and young firms has changed for this part of the economy.
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Measuring the Effect of COVID-19 on U.S. Small Businesses: The Small Business Pulse Survey
May 2020
Working Paper Number:
CES-20-16
In response to the novel coronavirus (COVID-19) pandemic, the Census Bureau developed and fielded an entirely new survey intended to measure the effect on small businesses. The Small Business Pulse Survey (SBPS) will run weekly from April 26 to June 27, 2020. Results from the SBPS will be published weekly through a visualization tool with downloadable data. We describe the motivation for SBPS, summarize how the content for the survey was developed, and discuss some of the initial results from the survey. We also describe future plans for the SBPS collections and for our research using the SBPS data. Estimates from the first week of the SBPS indicate large to moderate negative effects of COVID-19 on small businesses, and yet the majority expect to return to usual level of operations within the next six months. Reflecting the Census Bureau's commitment to scientific inquiry and transparency, the micro data from the SBPS will be available to qualified researchers on approved projects in the Federal Statistical Research Data Center network.
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