The Promise and Potential of Linked Employer-Employee Data for Entrepreneurship Research

Christopher Goetz, Henry Hyatt, Erika McEntarfer, Kristin Sandusky

This chapter is a preliminary draft unless otherwise noted. It may not have been subjected to the formal review process of the NBER. This page will be updated as the chapter is revised.

Chapter in forthcoming NBER book Measuring Entrepreneurial Businesses: Current Knowledge and Challenges, John Haltiwanger, Erik Hurst, Javier Miranda, and Antoinette Schoar, editors
Conference held December 16-17, 2014
Forthcoming from University of Chicago Press
in NBER Book Series Studies in Income and Wealth

In this paper, we highlight the potential for linked employer-employee data to be used in entrepreneurship research, describing new data on business start-ups, their founders and early employees, and providing examples of how they can be used to study the dynamics of new firms. Linked employer-employee data provide a unique perspective on new business creation by combining information on the business, workforce, and individual. By combining data on both workers and firms, linked data can answer many questions that owner-level or firm-level data cannot easily address alone - such as composition of the workforce at start-ups and their role in explaining business dynamics, the flow of workers across new and established firms, and the employment paths of the business owners themselves.

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This paper was revised on July 18, 2016

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This chapter first appeared as NBER working paper w21639, The Promise and Potential of Linked Employer-Employee Data for Entrepreneurship Research, Christopher Goetz, Henry Hyatt, Erika McEntarfer, Kristin Sandusky
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