Employment Dynamics and Business Relocation: New Evidence from the National Establishment Time Series

45 Pages Posted: 25 May 2006 Last revised: 7 Apr 2023

See all articles by David Neumark

David Neumark

University of California, Irvine - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Junfu Zhang

Clark University; IZA Institute of Labor Economics

Brandon Wall

Public Policy Institute of California; Stanford University

Multiple version iconThere are 2 versions of this paper

Date Written: October 2005

Abstract

We analyze and assess new evidence on employment dynamics from a new data source — the National Establishment Time Series (NETS). The NETS offers advantages over existing data sources for studying employment dynamics, including tracking business establishment relocations that can contribute to job creation or destruction on a regional level. Our primary purpose in this paper is to assess the reliability of the NETS data along a number of dimensions, and we conclude that it is a reliable data source although not without limitations. We also illustrate the usefulness of the NETS data by reporting, for California, a full decomposition of employment change into its six constituent processes, including job creation and destruction stemming from business relocation, which has figured prominently in policy debates but on which there has been no systematic evidence.

Suggested Citation

Neumark, David and Zhang, Junfu and Wall, Brandon, Employment Dynamics and Business Relocation: New Evidence from the National Establishment Time Series (October 2005). NBER Working Paper No. w11647, Available at SSRN: https://ssrn.com/abstract=819807

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