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Validating RefUSA micro-data with the Longitudinal Employer-Household Dynamics Data

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  • Makridis, Christos A.
  • Ohlrogge, Michael

Abstract

This paper validates the reliability of employment data in a frequently used establishment panel database assembled by InfoGroup by comparing it with employment and establishment data from the publicly available Longitudinal Employer-Household Dynamics (LEHD) and County Business Patterns (CBP) at the three-digit industry-by-state-by-year and two-digit industry-by-county-by-year levels between 1997 and 2013. We document substantial differences in both their cross-sectional and time series properties. Through an application involving the evaluation of the employment effects of state corporate tax rates, we also illustrate that the inclusion of fixed effects does not eliminate the bias associated with the extrapolation and/or other measurement error. These results suggest that both descriptive evidence and causal inference from the RefUSA data are unreliable.

Suggested Citation

  • Makridis, Christos A. & Ohlrogge, Michael, 2017. "Validating RefUSA micro-data with the Longitudinal Employer-Household Dynamics Data," Economics Letters, Elsevier, vol. 152(C), pages 83-87.
    • Handle: RePEc:eee:ecolet:v:152:y:2017:i:c:p:83-87
    DOI: 10.1016/j.econlet.2017.01.001
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    References listed on IDEAS

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    1. Juan Carlos Suárez Serrato & Owen Zidar, 2016. "Who Benefits from State Corporate Tax Cuts? A Local Labor Markets Approach with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 106(9), pages 2582-2624, September.
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    4. D'Angelo, H. & Ammerman, A. & Gordon-Larsen, P. & Linnan, L. & Lytle, L. & Ribisl, K.M., 2016. "Sociodemographic disparities in proximity of schools to tobacco outlets and fast-food restaurants," American Journal of Public Health, American Public Health Association, vol. 106(9), pages 1556-1562.
    5. John M. Abowd & Bryce E. Stephens & Lars Vilhuber & Fredrik Andersson & Kevin L. McKinney & Marc Roemer & Simon Woodcock, 2009. "The LEHD Infrastructure Files and the Creation of the Quarterly Workforce Indicators," NBER Chapters, in: Producer Dynamics: New Evidence from Micro Data, pages 149-230, National Bureau of Economic Research, Inc.
    6. Ryan C. McDevitt, 2014. ""A" Business by Any Other Name: Firm Name Choice as a Signal of Firm Quality," Journal of Political Economy, University of Chicago Press, vol. 122(4), pages 909-944.
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    Cited by:

    1. Minjee Kim & Tingyu Zhou, 2021. "Does Restricting the Entry of Formula Businesses Help Mom-and-Pop Stores? The Case of Small American Towns With Unique Community Character," Economic Development Quarterly, , vol. 35(2), pages 157-173, May.

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    More about this item

    Keywords

    Micro-data; Employment; Longitudinal Employer-Household Dynamics; County Business Patterns; RefUSA;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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