Using Worker Flows in the Analysis of the Firm
August 2003
Working Paper Number:
tp-2003-09
Abstract
This paper uses a novel approach to measure firm entry and exit, mergers and
acquisition. It uses information about the flows of clusters of workers across business
units to identify longitudinal linkage relationships in longitudinal business data. These
longitudinal relationships may be the result of either administrative or economic changes
and we explore both types of newly identified longitudinal relationships. In particular,
we develop a set of criteria based on worker flows to identify changes in firm
relationships ? such as mergers and acquisitions, administrative identifier changes and
outsourcing. We demonstrate how this new data infrastructure and this cluster flow
methodology can be used to better differentiate true firm entry/exit and simple changes in
administrative identifiers. We explore the role of outsourcing in a variety of ways but in
particular the outsourcing of workers to the temporary help industry. While the primary
focus is on developing the data infrastructure and the methodology to identify and
interpret these clustered flows of workers, we conclude the paper with an analysis of the
impact of these changes on the earnings of workers.
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:
analysis,
statistical,
data census,
report,
census data,
survey,
study,
respondent,
research,
empirical,
yearly,
firms census,
longitudinal,
measure,
population,
census business,
census bureau,
aging
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:
Internal Revenue Service,
Standard Industrial Classification,
National Science Foundation,
University of Maryland,
Financial, Insurance and Real Estate Industries,
Current Population Survey,
Employer Identification Numbers,
Cornell University,
Longitudinal Employer Household Dynamics,
LEHD Program,
Census Bureau Business Register
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