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Using employee flows to improve measures of job creation and destruction and firm dynamics: The case of Belgium

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Author Info
Geurts, Karen
Ramioul, Monique
Vets, Peter

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Abstract

This paper presents a methodology for the improved estimation of measures of firm dynamics and job creation and destruction. The analysis is based on a linked employer-employee data set covering all private employers in Belgium. In keeping with a novel approach recently developed in the Scandinavian countries and the V.S, we use clustered employee flows between employers to reduce the upward bias in the estimated measures. The worker flow approach results in a substantial quality improvement of the discussed measures. In the period of observation, we find that 35 to 50 per cent of total entries and exits of firms with at least 10 employees does not coincide with the real opening or closing of a firm. Overall job creation and destruction levels are substantially being revised downwards as well. Besides affecting average levels, correcting for worker flows also strongly reduces annual variation the estimated measures, especially at the sectoral level.

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File URL: http://mpra.ub.uni-muenchen.de/15306/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15306.

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Date of creation: 2009
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Handle: RePEc:pra:mprapa:15306

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Related research
Keywords: Job flows; Labor reallocation; Micro data;

Find related papers by JEL classification:
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Boeri, Tito, 1996. "Is Job Turnover Countercyclical?," Journal of Labor Economics, University of Chicago Press, vol. 14(4), pages 603-25, October. [Downloadable!] (restricted)
  2. Stefano Scarpetta & Philip Hemmings & Thierry Tressel & Jaejoon Woo, 2002. "The Role of Policy and Institutions for Productivity and Firm Dynamics: Evidence from Micro and Industry Data," OECD Economics Department Working Papers 329, OECD, Economics Department. [Downloadable!]
  3. Eric Bartelsman & Stefano Scarpetta & Fabiano Schivardi, 2005. "Comparative analysis of firm demographics and survival: evidence from micro-level sources in OECD countries," Industrial and Corporate Change, Oxford University Press, vol. 14(3), pages 365-391, June.
  4. Ossi Korkeamäki & Tomi Kyyrä, 2000. "Integrated Panel of Finnish Companies and Workers," Discussion Papers 226, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  5. Pierrette Heuse & Yves Saks, 2009. "Labour flows in Belgium," Research series 200904-14, National Bank of Belgium. [Downloadable!]
  6. Lucia Foster & John C. Haltiwanger & C. J. Krizan, 2001. "Aggregate Productivity Growth. Lessons from Microeconomic Evidence," NBER Chapters, in: New Developments in Productivity Analysis, pages 303-372 National Bureau of Economic Research, Inc. [Downloadable!]
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  7. Nicola Brandt, 2004. "Business Dynamics in Europe," OECD Science, Technology and Industry Working Papers 2004/1, OECD, Directorate for Science, Technology and Industry. [Downloadable!]
  8. John M. Abowd & Patrick Corbel & Francis Kramarz, 1999. "The Entry And Exit Of Workers And The Growth Of Employment: An Analysis Of French Establishments," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 170-187, May. [Downloadable!] (restricted)
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  9. Stiglbauer, Alfred M. & Stahl, Florian & Winter-Ebmer, Rudolf & Zweimüller, Josef, 2002. "Job Creation and Job Destruction in a Regulated Labor Market: The Case of Austria," IZA Discussion Papers 546, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  10. Baldwin, John R. & Beckstead, Desmond & Girard, Andrée, 2002. "The Importance of Entry to Canadian Manufacturing with an Appendix on Measurement Issues," Analytical Studies Branch Research Paper Series 2002189e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
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  11. Julián Messina & Giovanna Vallanti, 2007. "Job Flow Dynamics and Firing Restrictions: Evidence from Europe," Economic Journal, Royal Economic Society, vol. 117(521), pages 279-301, 06. [Downloadable!] (restricted)
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  12. Abowd, John M. & Vilhuber, Lars, 2005. "The Sensitivity of Economic Statistics to Coding Errors in Personal Identifiers," Journal of Business & Economic Statistics, American Statistical Association, vol. 23, pages 133-152, April. [Downloadable!] (restricted)
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  13. Lars Vilhuber, 2007. "Adjusting Imperfect Data: Overview and Case Studies," NBER Working Papers 12977, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  14. John M. Abowd & John C. Haltiwanger & Julia I. Lane, 2004. "Integrated Longitudinal Employee-Employer Data for the United States," Technical Papers 2004-02, Longitudinal Employer-Household Dynamics, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
  15. Gomez-Salvador, Ramon & Messina, Julian & Vallanti, Giovanna, 2004. "Gross job flows and institutions in Europe," Labour Economics, Elsevier, vol. 11(4), pages 469-485, August. [Downloadable!] (restricted)
    Other versions:
  16. Nadim Ahmad, 2006. "A Proposed Framework For business Demography Statistics," OECD Statistics Working Papers 2006/3, OECD, Statistics Directorate. [Downloadable!]
  17. Benedetto, Gary & Haltiwanger, John & Lane, Julia & McKinney, Kevin, 2007. "Using Worker Flows to Measure Firm Dynamics," Journal of Business & Economic Statistics, American Statistical Association, vol. 25, pages 299-313, July. [Downloadable!] (restricted)
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