Official statistical agencies such as the Census Bureau and the Bureau of Labor Statistics collect enormous quantities of microdata in statistical surveys. These data are valuable for economic research and market and policy analysis. However, the data cannot be released to the public because of confidentiality commitments to individual respondents. These commitments, coupled with the strong research demand for microdata, have led the agencies to consider various proposals for releasing public use microdata. Most proposals for public use microdata call for the development of surrogate data that disguise the original data. Thus, they involve the addition of measurement errors to the data. In this paper, we examine disclosure issues and explore alternative masking methods for generating panels of useful economic microdata that can be released to researchers. While our analysis applies to all confidential microdata, applications using the Census Bureau's Longitudinal Research Data Base (LRD) are used for illustrative purposes throughout the discussion.
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Multiple Classification Systems For Economic Data: Can A Thousand Flowers Bloom? And Should They?
December 1991
Working Paper Number:
CES-91-08
The principle that the statistical system should provide flexibility-- possibilities for generating multiple groupings of data to satisfy multiple objectives--if it is to satisfy users is universally accepted. Yet in practice, this goal has not been achieved. This paper discusses the feasibility of providing flexibility in the statistical system to accommodate multiple uses of the industrial data now primarily examined within the Standard Industrial Classification (SIC) system. In one sense, the question of feasibility is almost trivial. With today's computer technology, vast amounts of data can be manipulated and stored at very low cost. Reconfigurations of the basic data are very inexpensive compared to the cost of collecting the data. Flexibility in the statistical system implies more than the technical ability to regroup data. It requires that the basic data are sufficiently detailed to support user needs and are processed and maintained in a fashion that makes the use of a variety of aggregation rules possible. For this to happen, statistical agencies must recognize the need for high quality microdata and build this into their planning processes. Agencies need to view their missions from a multiple use perspective and move away from use of a primary reporting and collection vehicle. Although the categories used to report data must be flexible, practical considerations dictate that data collection proceed within a fixed classification system. It is simply too expensive for both respondents and statistical agencies to process survey responses in the absence of standardized forms, data entry programs, etc. I argue for a basic classification centered on commodities--products, services, raw materials and labor inputs--as the focus of data collection. The idea is to make the principle variables of interest--the commodities--the vehicle for the collection and processing of the data. For completeness, the basic classification should include labor usage through some form of occupational classification. In most economic surveys at the Census Bureau, the reporting unit and the classified unit have been the establishment. But there is no need for this to be so. The basic principle to be followed in data collection is that the data should be collected in the most efficient way--efficiency being defined jointly in terms of statistical agency collection costs and respondent burdens.
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The Longitudinal Research Database (LRD): Status And Research Possibilities
July 1988
Working Paper Number:
CES-88-02
This paper discusses the development and use of the Longitudinal Research Data available at the Center for Economic Studies of the Bureau of the Census in terms of what has been accomplished thus far, what projects are currently in progress, and what plans are in place for the near future. The major achievement to date is the construction of the database itself, which contains data for manufacturing establishments collected by the Census in 1963, 1967, 1972, 1977 and 1982, and the Annual Survey of Manufactures for non-Census years from 1973 to 1985. These data now reside in the Center's computer in a consistent format across all years. In addition, a large software development task that greatly simplifies the task of selecting subsets of the database for specific research projects is well underway. Finally, a number of powerful microcomputers have been purchased for use by researchers for their statistical analysis. Current efforts underway at the Center include research on such policy-relevant issues as mergers and their impact on profits and production, high technology trade, import competition, plant level productivity, entry and exit, and productivity differences between large and small firms. Due to the confidentiality requirements of the Census data, most of their research is performed by Center staff and Special Sworn Employees. Under certain circumstances, the Center accepts user-written programs from outside researchers. These routines are executed by Center staff, and the resultant output is reviewed thoroughly for disclosure problems. The Center is also an active member of a task force working on methods on release "masked" or "cloned" microdata in public-use files that will protect the confidentiality of the data while at the same time provide a research tool for outside users. The Center research program contributes directly to future research possibilities. The current batch of research projects is adding insight into the nature of the LRD database. This information is continually being incorporated into the Center's software system, thus facilitating yet more research activity. Moreover, since a good portion of the research involves linking the Longitudinal Research Data to other data files, such as the NSF/Census R&D data, the scope of the databases is continually being expanded. Furthermore, the Center is exploring the possibility of linking the demographic data collected by the Census Bureau to the LRD database.
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Newly Recovered Microdata on U.S. Manufacturing Plants from the 1950s and 1960s: Some Early Glimpses
September 2011
Working Paper Number:
CES-11-29
Longitudinally-linked microdata on U.S. manufacturing plants are currently available to researchers for 1963, 1967, and 1972-2009. In this paper, we provide a first look at recently recovered manufacturing microdata files from the 1950s and 1960s. We describe their origins and background, discuss their contents, and begin to explore their sample coverage. We also begin to examine whether the available establishment identifier(s) allow record linking. Our preliminary analyses suggest that longitudinally-linked Annual Survey of Manufactures microdata from the mid-1950s through the present ' containing 16 years of additional data ' appears possible though challenging. While a great deal of work remains, we see tremendous value in extending the manufacturing microdata series back into time. With these data, new lines of research become possible and many others can be revisited.
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Towards Unrestricted Public Use Business Microdata: The Synthetic Longitudinal Business Database
February 2011
Working Paper Number:
CES-11-04
In most countries, national statistical agencies do not release establishment-level business microdata, because doing so represents too large a risk to establishments\' confidentiality. One approach with the potential for overcoming these risks is to release synthetic data; that is, the released establishment data are simulated from statistical models designed to mimic the distributions of the underlying real microdata. In this article, we describe an application of this strategy to create a public use file for the Longitudinal Business Database, an annual economic census of establishments in the United States comprising more than 20 million records dating back to 1976. The U.S. Bureau of the Census and the Internal Revenue Service recently approved the release of these synthetic microdata for public use, making the synthetic Longitudinal Business Database the first-ever business microdata set publicly released in the United States. We describe how we created the synthetic data, evaluated analytical validity, and assessed disclosure risk.
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Plant-Level Productivity and Imputation of Missing Data in the Census of Manufactures
January 2011
Working Paper Number:
CES-11-02
In the U.S. Census of Manufactures, the Census Bureau imputes missing values using a combination of mean imputation, ratio imputation, and conditional mean imputation. It is wellknown that imputations based on these methods can result in underestimation of variability and potential bias in multivariate inferences. We show that this appears to be the case for the existing imputations in the Census of Manufactures. We then present an alternative strategy for handling the missing data based on multiple imputation. Specifically, we impute missing values via sequences of classification and regression trees, which offer a computationally straightforward and flexible approach for semi-automatic, large-scale multiple imputation. We also present an approach to evaluating these imputations based on posterior predictive checks. We use the multiple imputations, and the imputations currently employed by the Census Bureau, to estimate production function parameters and productivity dispersions. The results suggest that the two approaches provide quite different answers about productivity.
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THE MANUFACTURING PLANT OWNERSHIP CHANGE DATABASE: ITS CONSTRUCTION AND USEFULNESS
September 1998
Working Paper Number:
CES-98-16
The Center for Economic Studies, U. S. Bureau of the Census, has constructed the "Manufacturing Plant Ownership Change Database" (OCD)using plant-level data taken from the Census Bureau's Longitudinal Research Database (LRD). The OCD contains data on all manufacturing establishments that have experienced ownership change at least once during the period 1963-1992 . This is a unique data set which, together with the LRD, can be used to conduct a variety of economic studies that were not possible before. This paper describes how the OCD was constructed and discusses the usefulness of these data for economic research.
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Measuring Labor Earnings Inequality Using Public-Use March Current Population Survey Data: The Value of Including Variances and Cell Means When Imputing Topcoded Values
November 2008
Working Paper Number:
CES-08-38
Using the Census Bureau's internal March Current Population Surveys (CPS) file, we construct and make available variances and cell means for all topcoded income values in the publicuse version of these data. We then provide a procedure that allows researchers with access only to the public-use March CPS data to take advantage of this added information when imputing its topcoded income values. As an example of its value we show how our new procedure improves on existing imputation methods in the labor earnings inequality literature.
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Price Dispersion In U.S. Manufacturing: Implications For The Aggregation Of Products And Firms
March 1992
Working Paper Number:
CES-92-03
This paper addresses the question of whether products in the U.S. Manufacturing sector sell at a single (common) price, or whether prices vary across producers. Price dispersion is interesting for at least two reasons. First, if output prices vary across producers, standard methods of using industry price deflators lead to errors in measuring real output at the industry, firm, and establishment level which may bias estimates of the production function and productivity growth. Second, price dispersion suggests product heterogeneity which, if consumers do not have identical preferences, could lead to market segmentation and price in excess of marginal cost, thus making the current (competitive) characterization of the Manufacturing sector inappropriate and invalidating many empirical studies. In the course of examining these issues, the paper develops a robust measure of price dispersion as well as new quantitative methods for testing whether observed price differences are the result of differences in product quality. Our results indicate that price dispersion is widespread throughout manufacturing and that for at least one industry, Hydraulic Cement, it is not the result of differences in product quality.
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Analytic Use Of Economic Microdata; A Model For Researcher Access With Confidentiality Protection
August 1992
Working Paper Number:
CES-92-08
A primary responsibility of the Center for Economic Studies (CES) of the U.S. Bureau of the Census is to facilitate researcher access to confidential economic microdata files. Benefits from this program accrue not only to policy makers--there is a growing awareness of the importance of microdata for analyzing both the descriptive and welfare implications of regulatory and environmental changes--but also and importantly to the statistical agencies themselves. In fact, there is substantial recent literature arguing for the proposition that the largest single improvement that the U.S. statistical system could make is to improve its analytic capabilities. In this paper I briefly discuss these benefits to greater access for analytical work and ways to achieve them. Due to the nature of business data, public use databases and masking technologies are not available as vehicles for releasing useful microdata files. I conclude that a combination of outside and inside research programs, carefully coordinated and integrated is the best model for ensuring that statistical agencies reap the gains from analytic data users. For the United States, at least, this is fortuitous with respect to justifying access since any direct research with confidential data by outsiders must have a "statistical purpose". Until the advent of CES, it was virtually impossible for researchers to work with the economic microdata collected by the various economic censuses. While the CES program is quite large, as it now stands, researchers, or their representatives, must come to the Census Bureau in Washington, D.C. to access the data. The success of the program has led to increasing demands for data access in facilities outside of the Washington, D.C. area. Two options are considered: 1) Establish Census Bureau facilities in various universities or similar nonprofit research facilities and 2) Develop CES regional operations in existing Census Bureau regional offices.
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Synthetic Data and Confidentiality Protection
September 2003
Working Paper Number:
tp-2003-10
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