Papers Containing Keywords(s): 'econometric'
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Viewing papers 61 through 70 of 249
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Working PaperData in Action: Data-Driven Decision Making in U.S. Manufacturing
January 2016
Working Paper Number:
CES-16-06
Manufacturing in America has become significantly more data-intensive. We investigate the adoption, performance effects and organizational complementarities of data-driven decision making (DDD) in the U.S. Using data collected by the Census Bureau for 2005 and 2010, we observe the extent to which manufacturing firms track and use data to guide decision making, as well as their investments in information technology (IT) and the use of other structured management practices. Examining a representative sample of over 18,000 plans, we find that adoption of DDD is earlier and more prevalent among larger, older plants belonging to multi-unit firms. Smaller single-establishment firms adopt later but have a higher correlation with performance than similar non-adopters. Using a fixed-effects estimator, we find the average value-added for later DDD adopters to be 3% greater than non-adopters, controlling for other inputs to production. This effect is distinct from that associated with IT and other structured management practices and is concentrated among single-unit firms. Performance improves after plants adopt DDD, but not before ' consistent with a causal relationship. However, DDD-related performance differentials decrease over time for early and late adopters, consistent with firm learning and development of organizational complementarities. Formal complementarity tests suggest that DDD and high levels of IT capital reinforce each other, as do DDD and skilled workers. For some industries, the benefits of DDD adoption appear to be greater for plants that delegate some decision making to frontline workers.View Full Paper PDF
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Working PaperPlant Exit and U.S. Imports from Low-Wage Countries
January 2016
Working Paper Number:
CES-16-02
Over the past twenty years, imports to the U.S. from low-wage countries have increased dramatically. In this paper we examine how low-wage country import competition in the U.S. influences the probability of manufacturing establishment closure. Confidential data from the U.S. Bureau of the Census are used to track all manufacturing establishments between 1992 and 2007. These data are linked to measures of import competition built from individual trade transactions. Controlling for a variety of plant and firm covariates, we show that low-wage import competition has played a significant role in manufacturing plant exit. Analysis employs fixed effects panel models running across three periods: the first plant-level panels examining trade and exit for the U.S. economy. Our results appear robust to concerns regarding endogeneity.View Full Paper PDF
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Working PaperThe Impact of Information and Communication Technology Adoption on Multinational Firm Boundary Decisions
January 2016
Working Paper Number:
CES-16-01
This paper evaluates the effect of adopting internet-enabled information and communication technology (ICT) adoption on the decision to reorganize production across national borders (foreign boundary decision) by multinational enterprises (MNE). Using a transaction cost framework, we argue that ICT adoption influences foreign boundary decisions by lowering coordination costs both internally and externally for the firm. We propose that the heterogeneity in the technology's characteristics, namely complexity and the production processes' degree of codifiability, moderate this influence. Using a difference-in-differences methodology and exploiting the richness of confidential U.S. Census Bureau microdata, we find that overall ICT adoption is positively associated with greater likelihood of in-house production, as measured by increases in intra-firm trade shares. Furthermore, we find that more complex forms of ICT are associated with larger increases in intra-firm trade shares. Finally, our results indicate that MNEs in industries in which production specifications are more easily codified in an electronic format are less likely to engage in intra-firm relative to arms-length trade following ICT adoption.View Full Paper PDF
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Working PaperAllocation of Company Research and Development Expenditures to Industries Using a Tobit Model
November 2015
Working Paper Number:
CES-15-42
This paper uses Census microdata and a regression-based approach to assign multi-division firms' pre-2008 Research and Development (R&D) expenditures to more than one industry. Since multi-division firms conduct R&D in more than one industry, assigning R&D to corresponding industries provides a more accurate representation of where R&D actually takes place and provides a consistent time-series with the National Science Foundation R&D by line of business information. Firm R&D is allocated to industries on the basis of observed industry payroll, as befits the historic importance of payroll in Census assignments of firms to industry. The results demonstrate that the method of assigning R&D to industries on the basis of payroll works well in earlier years, but becomes less effective over time as firms outsource their manufacturing function.View Full Paper PDF
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Working PaperInput Linkages and the Transmission of Shocks: Firm-Level Evidence from the 2011 Tohoku Earthquake
September 2015
Working Paper Number:
CES-15-28
Using novel firm-level microdata and leveraging a natural experiment, this paper provides causal evidence for the role of trade and multinational firms in the cross-country transmission of shocks. Foreign multinational affiliates in the U.S. exhibit substantial intermediate input linkages with their source country. The scope for these linkages to generate cross-country spillovers in the domestic market depends on the elasticity of substitution with respect to other inputs. Using the 2011 Tohoku earthquake as an exogenous shock, we estimate this elasticity for those firms most reliant on Japanese imported inputs: the U.S. affiliates of Japanese multinationals. These firms suffered large drops in U.S. output in the months following the shock, roughly one-for-one with the drop in imports and consistent with a Leontief relationship between imported and domestic inputs. Structural estimates of the production function for these firms yield disaggregated production elasticities that are similarly low. Our results suggest that global supply chains are sufficiently rigid to play an important role in the cross-country transmission of shocks.View Full Paper PDF
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Working PaperIs there an Advantage to Working? The Relationship between Maternal Employment and Intergenerational Mobility
September 2015
Working Paper Number:
CES-15-27
We investigate the question of whether investing in a child's development by having a parent stay at home when the child is young is correlated with the child's adult outcomes. Specifically, do children with stay-at-home mothers have higher adult earnings than children raised in households with a working mother? The major contribution of our study is that, unlike previous studies, we have access to rich longitudinal data that allows us to measure both the parental earnings when the child is very young and the adult earnings of the child. Our findings are consistent with previous studies that show insignificant differences between children raised by stay-at-home mothers during their early years and children with mothers working in the market. We find no impact of maternal employment during the first 5 years of a child's life on earnings, employment, or mobility measures of either sons or daughters. We do find, however, that maternal employment during children's high school years is correlated with a higher probability of employment as adults for daughters and a higher correlation between parent and daughter earnings ranks.View Full Paper PDF
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Working PaperStatistics on the International Trade Administration's Global Markets Program
September 2015
Working Paper Number:
CES-15-17
Recent mandates for evidence-based policy choices from both the Executive and Legislative branches of the federal government underscore the importance of understanding the relationship between program participation and business outcomes. In this paper, we examine the correlations between participation in an export-promotion program and business outcomes. We use this experience to provide more general lessons learned about combining program data on treatments with Census Bureau micro data that can be used as a control. Note this paper does not evaluate a program, but instead provides critical information about a program. The mission of the Commercial Service/Global Markets program is to help companies either start or increase their exports of goods and services. It pursues this mission through advocacy, events, and counseling. This study looks at a very small part of the overall program. While we cannot rule-out several sources of bias in our results, we do observe several consistent patterns across our models. In particular, program participation is positively correlated with export growth and change and, for small businesses, also with positive employment growth. However, overall, and for large firms in particular, there is a negative correlation with employment growth and counseling. The paper concludes with a 'Lessons Learned' section that highlights areas where measurement can be improved.View Full Paper PDF
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Working PaperEstimation and Inference in Regression Discontinuity Designs with Clustered Sampling
August 2015
Working Paper Number:
carra-2015-06
Regression Discontinuity (RD) designs have become popular in empirical studies due to their attractive properties for estimating causal effects under transparent assumptions. Nonetheless, most popular procedures assume i.i.d. data, which is not reasonable in many common applications. To relax this assumption, we derive the properties of traditional non-parametric estimators in a setting that incorporates potential clustering at the level of the running variable, and propose an accompanying optimal-MSE bandwidth selection rule. Simulation results demonstrate that falsely assuming data are i.i.d. when selecting the bandwidth may lead to the choice of bandwidths that are too small relative to the optimal-MSE bandwidth. Last, we apply our procedure using person-level microdata that exhibits clustering at the census tract level to analyze the impact of the Low-Income Housing Tax Credit program on neighborhood characteristics and low-income housing supply.View Full Paper PDF
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Working PaperModeling Endogenous Mobility in Wage Determiniation
June 2015
Working Paper Number:
CES-15-18
We evaluate the bias from endogenous job mobility in fixed-effects estimates of worker- and firm-specific earnings heterogeneity using longitudinally linked employer-employee data from the LEHD infrastructure file system of the U.S. Census Bureau. First, we propose two new residual diagnostic tests of the assumption that mobility is exogenous to unmodeled determinants of earnings. Both tests reject exogenous mobility. We relax the exogenous mobility assumptions by modeling the evolution of the matched data as an evolving bipartite graph using a Bayesian latent class framework. Our results suggest that endogenous mobility biases estimated firm effects toward zero. To assess validity, we match our estimates of the wage components to out-of-sample estimates of revenue per worker. The corrected estimates attribute much more of the variation in revenue per worker to variation in match quality and worker quality than the uncorrected estimates.View Full Paper PDF
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Working PaperCyclical Reallocation of Workers Across Employers by Firm Size and Firm Wage
June 2015
Working Paper Number:
CES-15-13
Do the job-to-job moves of workers contribute to the cyclicality of employment growth at different types of firms? In this paper, we use linked employer-employee data to provide direct evidence on the role of job-to-job flows in job reallocation in the U.S. economy. To guide our analysis, we look to the theoretical literature on on-the-job search, which predicts that job-to-job flows should reallocate workers from small to large firms. While this prediction is not supported by the data, we do find that job-to-job moves generally reallocate workers from lower paying to higher paying firms, and this reallocation of workers is highly procyclical. During the Great Recession, this firm wage job ladder collapsed, with net worker reallocation to higher wage firms falling to zero. We also find that differential responses of net hires from non-employment play an important role in the patterns of the cyclicality of employment dynamics across firms classified by size and wage. For example, we find that small and low wage firms experience greater reductions in net hires from non-employment during periods of economic contractions.View Full Paper PDF
