TY - JOUR AU - Davis,Steven J. AU - Haltiwanger,John AU - Jarmin,Ron S. AU - Krizan,C. J. AU - Miranda,Javier AU - Nucci,Alfred AU - Sandusky,Kristin TI - Measuring the Dynamics of Young and Small Businesses: Integrating the Employer and Nonemployer Universes JF - National Bureau of Economic Research Working Paper Series VL - No. 13226 PY - 2007 Y2 - July 2007 UR - http://www.nber.org/papers/w13226 L1 - http://www.nber.org/papers/w13226.pdf N1 - Author contact info: Steven J. Davis Booth School of Business The University of Chicago 5807 South Woodlawn Avenue Chicago, IL 60637 Tel: 773/702-7312 Fax: 773/834-0733 E-Mail: Steven.Davis@ChicagoBooth.edu John C. Haltiwanger Department of Economics University of Maryland College Park, MD 20742 Tel: 301/405-3504 Fax: 301/405-3542 E-Mail: haltiwan@econ.umd.edu Ron S. Jarmin Center for Economic Studies U.S. Census Bureau 4600 Silver Hill Road Washington, DC 20233 Tel: 301.763.1858 Fax: 301.763.5935 E-Mail: ron.s.jarmin@census.gov C. J. Krizan Center for Economic Studies U.S. Census Bureau 4600 Silver Hill Road Washington, DC 20233 E-Mail: Cornell.J.Krizan@census.gov Javier Miranda U.S. Bureau of the Census Center for Economic Studies 4600 Silver Hill Road Washington, DC 20233 Tel: 301-763-6466 E-Mail: javier.miranda@census.gov Alfred Nucci Bureau of the Census Center for Economic Studies 4600 Silver Hill Road Washington, D.C. 20233 Kristin Sandusky U.S. Bureau of Census LEHD Program 4700 Silverhill Road Suitland, MD 20233 Tel: (301)763-5292 Fax: (301) 457-8430 E-Mail: lee.k.sandusky@census.gov M1 - published as Steven J. Davis, John Haltiwanger, Ronald S. Jarmin, C.J. Krizan, Javier Miranda, Alfred Nucci, Kristin Sandusky. "Measuring the Dynamics of Young and Small Businesses: Integrating the Employer and Nonemployer Universes," in Timothy Dunne, J. Bradford Jensen, and Mark J. Roberts, editors, "Producer Dynamics: New Evidence from Micro Data" University of Chicago Press (2009) AB - We develop a preliminary version of an Integrated Longitudinal Business Database (ILBD) that combines administrative records and survey data for all employer and nonemployer business units in the United States. Unlike other large-scale business databases, the ILBD tracks business transitions from nonemployer to employer status. This feature of the ILBD opens a new frontier for the study of business formation, early lifecycle dynamics and the precursors to job creation in the U.S. economy. There are 5.4 million nonfarm business firms with employees as of 2000 and another 15.5 million with no employees. Our analysis focuses on 40 industries that account for nearly half of nonemployers and 36 percent of nonemployer revenues. Within these industries, nonemployers account for 14 percent of business revenues. About 220,000 of the seven million nonemployers in our selected industries hire workers and migrate to the employer universe over a three-year horizon. These Migrants account for 20 percent of revenue among young employers (three years or less since first hire). Compared to other nonemployers, the revenue of Migrants grows very rapidly in the year prior to and the year of transition to employer status. ER -