Business Dynamics Statistics Briefing: High Growth and Failure of Young Firms

4 Pages Posted: 31 Mar 2010

See all articles by John Haltiwanger

John Haltiwanger

University of Maryland - Department of Economics; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

Ron S. Jarmin

U.S. Census Bureau

Javier Miranda

U.S. Census Bureau - Center for Administrative Records Research and Applications

Date Written: March 2009

Abstract

Newly released data from the U.S. Census Bureau, the Business Dynamics Statistics (BDS), allow unprecedented tracking of business dynamics for U.S. firms and establishments. This is the fourth in a series of briefings to highlight some key features of the data.

What is the role of young entrepreneurial firms in job creation? Until now, researchers lacked comprehensive data broken out by firm age necessary for understanding this fundamental dynamic in our economy. A novel feature of the BDS is that employment growth and market selection can be tracked by firm age for the universe of U.S. private, non-agricultural businesses.

The Business Dynamics Statistics (BDS) is a product of the U.S. Census Bureau that measures business openings and closings, startups, job creation and job destruction by firm size, age, industrial sector, and state. The U.S. economy is comprised of more than 6 million establishments with paid employees. The population of these businesses is constantly churning-some businesses grow, others decline, and yet others close. New businesses constantly replenish this pool. The BDS monitors this activity to provide a picture of the dynamics underlying aggregate net employment growth.

Keywords: bds, business dynamics statistics, census, firm, establishment, job creation, entrepreneurial

Suggested Citation

Haltiwanger, John C. and Jarmin, Ron S. and Miranda, Javier, Business Dynamics Statistics Briefing: High Growth and Failure of Young Firms (March 2009). Available at SSRN: https://ssrn.com/abstract=1580140 or http://dx.doi.org/10.2139/ssrn.1580140

John C. Haltiwanger (Contact Author)

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States
301-405-3504 (Phone)
301-405-3542 (Fax)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Ron S. Jarmin

U.S. Census Bureau ( email )

4700 Silver Hill Road
Washington, DC 20233
United States

Javier Miranda

U.S. Census Bureau - Center for Administrative Records Research and Applications ( email )

4700 Silver Hill Road
Washington, DC 20233
United States

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