John Haltiwanger

• Ethnic Segregation at Home and at Work
  Current (2007-01-07 - 2009-01-06)
  University of Bristol, England
  

• Plant-Level Prices, Productivity Measurement and Industry Dynamics
  Current (2006-09-01 - 2009-08-31)
  NSF
  Abstract

  Understanding the link between micro and aggregate productivity dynamics has been a key theme in the recent empirical and theoretical literature. There has been a rapid increase in the development and availability of longitudinal business databases around the world that permit studying industrial dynamics on many rich dimensions. One key limitation of the typical longitudinal business database (e.g., the LRD for the U.S. manufacturing sector) is that the data do not provide information on plant- or firm-level prices. As such, the typical measures of plant-level output, inputs and productivity, using datasets like the LRD, have been based upon deflating nominal revenue of the plant with a sectoral-level deflator. This procedure is appropriate only if there is price homogeneity within the sector. However, the limited evidence that is starting to emerge indicates that there is substantial within sector price heterogeneity. Given such large heterogeneity, productivity measures which rely on sector-level price deflators capture differences in productivity across plants but also differences in prices across plants within sectors. In the last several years, theoretical and empirical researchers have recognized this limitation and have been developing indirect methods to take into account the presence of within sector price heterogeneity. While considerable progress has been made using these indirect methods, this contribution is directly to assess the importance of using plant-level prices of inputs and outputs for measurement, given the access to a longitudinal business database that includes plant-level prices. This database provides a unique laboratory to explore the role of heterogeneity in plant-level prices in outputs and inputs for the measurement, interpretation and analysis of plant dynamics.

  Broader Impact: Output price heterogeneity within sectors may be due to differences in mark-ups, differences in product quality or differences in demand shocks across plants within sectors. Measurement of output price heterogeneity, along with measures of revenue, permits decomposing movements in the traditional "revenue-based productivity" measures into the component associated with movements in physical productivity and the movements due to relative prices. A whole host of research questions can be addressed using such decompositions. First, it is of interest to know whether the main insights from the existing literature on plant dynamics hold up when physical output and relative price movements are measured separately. Second, it is of interest to explore the sources of plant-level price heterogeneity--in particular, does such price heterogeneity reflect differences in mark-ups, product quality or demand shocks. Third, it is of interest to explore the relative role of physical productivity differences and relative price differences in accounting for the observed plant dynamics. For example, a common finding in the literature is that plants with lower measured productivity are more likely to exit. However, an open question, given the available productivity measures until now, is whether exiting plants indeed have lower productivity or whether they simply charge higher prices. Finally, given the absence of plant-level prices in most datasets, it is of interest to explore to what extent the indirect methods developed in the recent literature are successful in controlling for within sector price heterogeneity. The researchers are in a unique position to answer that question given their access to a longitudinal business database that does have direct measures of prices. In terms of broader impact, the findings and analysis in this study are expected to be helpful to those using datasets without plant-level prices on the research strategies that can and should be used when trying to draw inferences using deflated revenue-based measures of output and productivity. Since there are now longitudinal business datasets for more than 50 countries around the world and virtually all of them do not have plant-level prices, the potential broader impact is substantial.

• Small Business and Economic Performance
  Current (2004-04-01 - 2007-10-15)
  KAUFFMAN
  Abstract

  Research to advance understanding of small business dynamics and their role in economic performance.

• Conference on the Analysis on Firms and Employees: Quantitative and Qualitative Approaches
  Current (2006-08-15 - 2007-07-31)
  NSF
  Abstract

  Researchers from different fields have used different data collection methods, ranging from observations based on firm site visits to the collection and integration of large scale administrative data sets on firms and workers, to analyze the organization of the workplace and how it relates to firm performance. Each approach has unveiled interesting results, but it is becoming increasingly clear that it is necessary to combine different data collection methods in order to understand how the human resource practices and organization of production relates to firm performance and how these relationships translate into broader economic and social outcomes. New technological and theoretical developments has made easier to combine different data collection methods and this is changing the field of economics that is defined by the nexus of labor economics, industrial organization and industry studies, a development that should be should be formally encouraged.

  The proposed conference is designed to bring together researchers who use linked employer-employee data, industry studies researchers, researchers who have conducted case studies, researchers who are using new methods of data collection for the interactions of businesses and workers and confidentiality researchers to define and establish this emerging field of research employer-employee data matching and its use. In particular, the conference will (i) identify how combining different study approaches data and using innovative data collection methods will improve our understanding of how the organization of the workplace relate to firm performance, (ii) address methodological and technical challenges associated with new data collection methods, and (iii) address confidentiality protection and privacy issues that arise when combining detailed data on workers and firms. In addition to bringing in experienced researchers to present papers, the conference will make special attempts to bring in graduate students and junior researchers who will be helped and encouraged to use these data sets for research as well as develop new methodologies for matching such data sets. By offering to extend the methodologies of matching employer-employee data and broadening the base of users for these data sets, this conference will contribute significantly to economic science with impacts.

• Aggregate and Individual Behavior: Bringing Theory and Empirics Together
  Current (2004-06-01 - 2007-06-30)
  NSF
  Abstract

  The primary objective of the proposed research is to study the aggregate and policy implications of non-convexities at the microeconomic level. There is ample evidence that non-convexities matter at the individual household and firm levels. The open question is whether there are aggregate implications of these non-convexities. Answering this question is important for both understanding aggregate fluctuations and for policy evaluation. The applications proposed here share a common research methodology: the specification of a model of dynamic optimization at the individual (firm or household) level combined with estimation through indirect inference. Thus the empirical work is directly tied to the formal modeling of individual behavior. Due to non-convexities, these applications rest upon a dynamic discrete choice framework. The goals of the research are: (i) to utilize this methodology within a dynamic general equilibrium setting to evaluate aggregate implications and (ii) to explore policy applications, such as investment tax credits.

  Broader Impacts of Proposed Activity
  The proposed research will have three broad impacts. First, the work will advance our ability to evaluate the impact of tax and subsidy policies on the economy, both at the micro-level and at the aggregate level. This pertains directly to policy that might subsidize the purchases of firm and household durables. These research results will be disseminated through circulating papers and participation in scientific conferences. Second, part of the proposed work is intended to create data summaries in the form of moments that will be useful to the research community. Third, the proposed work will include a sharing of research techniques to enhance the linking of formal modeling with empirical studies by other researchers.

• The Demand for Older Workers: Using Linked Employer-Employee Data.
  Ended (2002-07-01 - 2006-04-30)
  NIA
  

• IPA with Census Bureau
  Current (2005-02-01 - 2007-06-30)
  CENSUS
  

• The Role of Firms in Immigrant Assimilation and Labor Market Adjustment
  Current (2007-09-01 - 2012-06-30)
  EKS-NICHD
  Abstract

  The primary objectives of this proposal are to understand how immigrants and firms interact in the economy and how this interaction affects both immigrant success and native-born displacement. Our specific aims are: (1) To describe the rate of wage assimilation exploiting the panel nature of the newly developed longitudinal employer-employee matched data-sets (in the LEHD project at Census). Does the rate of wage conver-gence vary by date of arrival? Does the rate of convergence vary by country of origin? (2) To explain what factors are associated with the rate of wage convergence of immigrants? Do the charac-teristics of firms that employ immigrants help explain wage assimilation? For example, does the concen-tration of workers from the immigrant's home country, the size of firm and the other productive charac-teristics of firms change the rate of wage convergence? Do employment choices that immigrants make upon arrival in the U.S. affect the long-term prospects of immigrants?(3) To explore the relative success or failure of native-born workers to res-pond to competition from immi-grant workers? How much do worker characteristics such as the level of human capital or tenure in an in-dustry matter? How much do firm choices such as changes in the types of technology or worker mix mat-ter for the impact of immigrant flows on native born workers.(4) To describe the displacement of native-born workers from firms. When a firm begins to hire immigrants which native-born workers exit the firm? For example is it older or younger workers, workers with more or less tenure with the firm?(5) To describe what happens to displaced native-born workers. Do they work for other firms in related in-dustries? Do they migrate to other locations?

• Linked Employer-Household
  Ended (1999-10-01 - 2005-09-30)
  NSF