1. INFO 4470/ILRLE 4470 Register-based statistics by example: County Business Patterns John M. Abowd and Lars Vilhuber February 14, 2011

2. Outline Reminder of frames Economic sampling frames Definition of Register Register-based statistics 2/1/2011 © John M. Abowd and Lars Vilhuber 2011, all rights reserved 2

3. Basic Definitions Target population Out-of-scope population Frame population New: – Business entity demographics – Register 2/1/2011 © John M. Abowd and Lars Vilhuber 2011, all rights reserved 3

4. Establishments statistics Reminder: The “target population” is any entity satisfying the set of conditions that specify the universe. The “target population” is “Establishment population” – A business, industrial, service or governmental unit at a single location that distributes goods or performs services on a particular date (or during a given period). Out-of-scope population: – When the in-scope population is “employer establishments,” all establishments with zero employees are out of scope. 2/1/2011 © John M. Abowd and Lars Vilhuber 2011, all rights reserved 4

5. Business Entity Demographics Business entities have “establishments” as their basic unit Establishment: – A business or industrial unit at a single location that distributes goods or performs services Establishments are collected into companies Company (or “enterprise”) : – all the establishments that operate under the ownership or control of a single organization. A company may be a commercial business, service, or membership organization 2/14/2011 © John M. Abowd and Lars Vilhuber 2011, all rights reserved 5

6. Business Entity Demographics Classifications of companies: – one or several establishments – one or several locations – one or more economic activities – May have subsidiaries or not – May be classified by ownership Business entity demographics separately track establishments (physical business locations) and companies (economic organizations owning establishments) 2/1/2011 © John M. Abowd and Lars Vilhuber 2011, all rights reserved 6

7. Economic Sampling Frames Comprehensive mapping of location of the in- scope activity with standardized geography Comprehensive list of addresses of business and government establishments in the geographic area covered Economic activity and size measures for the entity (stratifying variables) Updating of organizational structure (by survey) 2/1/20117

8. Coverage Entity address lists are assembled from – previous economic censuses, – tax records and – surveys of company organization The U.S. Census Bureau collects business establishment information into the Employer Business Register and the Non-employer Business Register 2/1/2011 © John M. Abowd and Lars Vilhuber 2011, all rights reserved 8

9. Register-based statistics Register: “complete list of entities, maintained for administrative purposes” Examples: – Tax records – Property records (city, county) – (in Europe) person register – University students 2/1/2011 © John M. Abowd and Lars Vilhuber 2011, all rights reserved 9

10. Employer Business Frame Populations Census Employer Business Register BLS Establishment Register Establishment births and deaths The problem of false births and deaths The problem of multiple activity codes 2/1/2011 © John M. Abowd and Lars Vilhuber 2011, all rights reserved 10

11. Frame Maintenance Both business frames must collect information about the birth and death of new establishments – Census Bureau: Company Organization Survey (COS) between Economic Censuses, responses on periodic surveys This is complicated by the reliance on administrative reports (tax and unemployment insurance reports) and sample surveys 2/1/2011 © John M. Abowd and Lars Vilhuber 2011, all rights reserved 11

12. Census Employer Business Register Frame population consists of businesses that file income tax returns Employers are identified from the tax forms (EIN) Multiunit and single unit businesses are determined in the Economic Census Updates to the MU/SU classification are determined by the annual Report of Organization Survey (a.k.a. Company Organization Survey) 2/1/2011 © John M. Abowd and Lars Vilhuber 2011, all rights reserved 12

13. Business Register (2) Frame maintenance is conducted using weekly strips from the IRS master business returns Information is acquired with a lag that corresponds to the difference between filing deadlines and accounting periods Many different business tax forms are used 2/1/2011 © John M. Abowd and Lars Vilhuber 2011, all rights reserved 13

14. © John M. Abowd and Lars Vilhuber 2011, all rights reserved Business Register (3) To create a frame population from the Business Register (employer businesses) – Define the target population by activity and date – Select the establishments from the SU and MU business registers that meet the target population definition – Eliminate inactive establishments – Edit size measures (employment, payroll, sales) 2/1/201114

15. Next step: compute statistics Business Register: – County/ZIP/Metro Business Patterns http://www.census.gov/econ/cbp/ http://www.census.gov/econ/cbp/ 2/1/2011 © John M. Abowd and Lars Vilhuber 2011, all rights reserved 15

16. Register-based Population Censuses All personal addresses in Sweden are maintained in national registers The registers are updated by the individual when he/she moves using the national PIN All businesses and governmental activity use the registers to find the person The registers can be used as the sampling frame to conduct a census or survey – Swedish register-based census 2005 Swedish register-based census 2005 – German register-based census German register-based census 2/1/2011 © John M. Abowd and Lars Vilhuber 2011, all rights reserved 16