Tanja Hethey-Maier (Institute for Employment Research, Germany) Johannes Schmieder

1. Using Worker Flows in the Analysis of Establishment Turnover: Evidence from Germany Tanja Hethey-Maier (Institute for Employment Research, Germany) Johannes Schmieder (Boston University)

2. Research Data Centre (RDC) of the BA in the IAB • Tasks: Advice on data selection and data access, support guest researchers, data documentation, documentation on methodological aspects of data, clarify questions on data protection, update data, organize workshops, user conferences • Data based on: • the notification process of the social security system, • the internal procedures of the Federal Employment Agency • IAB-surveys • Establishment data: • IAB Establishment Panel • Establishment History Panel (BHP) • Data access: • scientific use files (SUF) • on-site use • remote data access

3. Motivation • growing demand on administrative data to study • establishment turnover • job mobility • Limited set of variables available for classification • Results are influenced by entry / exit classification Creative use of administrative data to define entry / exit classification scheme

4. Establishment History Panel (BHP) • cross sectional data on establishments • all establishments in Germany • with at least one employee covered by social security at reference date • period: 1975-2008 • reference date: 30th June • contents: • industry and location of the establishment • number of employees liable to social security (since 1999 marginal part-time employees) • broken down by gender, age, occupational status, qualification and nationality • quartiles of ages and wages • Establishment identifier (BNR)

5. Entry / exit classification • First / last appearance of BNR • Entrytype: amount of workers employed at a common BNR (predecessor) a year before (maximum clustered inflow / MCI) • Exittype: amount of workers employed at a common BNR (successor) next year (maximum clusterd outflow / MCO) • thresholds for MCO and MCI from Benedetto et al. (2007)

6. Entrytypes

7. Exittypes

8. Distribution of entrytypes (1976-2004)

9. New establishments 1976-2004

11. Characteristics of entrytypes Cross-section West Germany 2000 Number of employees

12. Characteristics of entrytypes Cross-section West Germany 2000 High-skilled workers (%)

13. Distribution of exittypes (1975-2003)

14. Exiting establishments 1975-2003

16. Publication & Further steps • results can be found in: FDZ Methodenreport 06/2010 (http://fdz.iab.de/164/section.aspx/Jahrgang/2010) • Further steps: Validation using survey data (IAB establishment panel)

17. Thank you for your attention Contact: Tanja.Hethey-Maier@iab.de Johannes@bu.edu

18. Back-up

19. References • Benedetto, G. / Haltiwanger, J. / Lane, J. / McKinney, K. (2007): Using Worker Flows to Measure Firm Dynamics. Journal of Business & Economic Statistics, 25(3): 299-313. • Haltiwanger, J. /Jarmin, R. / Miranda, J. (2008): Business Formation and Dynamics by Business Age: Results from the New Business Dynamics Statistics. (preliminary draft – BDS publication) http://www.ces.census.gov/index.php/bds/bds_publications

20. Notification of Social Security: • Insurance Number • Last Name • First Name • Address • Reason for Notification • Date of Employment • Establishment Number • Nationality • School Education • Professional Education • Type of Employment • Gross Earnings • Occupational Status 20