State Statistics
A service of the rand corporation

Business Dynamics: Category Definitions

 

Category Definition
Establishment size Average of the establishment's year t-1 and year t employment, e.g., for 2010, this includes 2009 and 2010.
Number of firmsFor state level tables, a firm with establishments in multiple states be counted multiple times, once in each state, irrespective of the portion of the firm residing in that state.
Number of establishmentsNA
EmploymentMarch 12 of each year.
Denominator (Avg. employment this and prev. year)Davis-Haltiwanger-Schuh (DHS) denominator. For time t, denom is the average of employment for times t and t-1. This variable attempts to prevent transitory shocks from creating a bias to the relationship between net growth from t-1 to t and size.
Establishments bornA count of establishments born during the last 12 months.
Establishments entry rate100 * Establishments born divided by establishment size.
Establishments exitingA count of establishments exiting from within the cell during the last 12 months.
Establishments exit rate100 * (Establishments exiting at time t / by the average of estabs at t and t-1).
Job creationCount of all jobs created within the cell over the last 12 months.
Jobs created by establishment birthsCount of jobs created within the cell by establishment births over the last 12 months.
Jobs created by continuing establishmentsCount of jobs created by continuing establishments over the last 12 months.
Job creation rate by establishment births100 * (Jobs created by establishment births over the last 12 months / Denominator)
Total job creation rate100 * (Job creation / Denominator)
Jobs destroyedCount of all jobs destroyedover the last 12 months.
Jobs destroyed by establishment exitCount of jobs destroyed by establishment exit over the last 12 months.
Jobs destroyed at continuing establishmentsCount of jobs destroyed at continuing establishments over the last 12 months.
Job destruction rate by establishment exits100 * (Jobs destroyed by establishment exit / Denominator)
Total job destruction rate100 * (Jobs destroyed / Denominator)
Net job creationTotal job creation rate - Total job destruction rate
Net job creation rateTotal job creation rate + Total job destruction rate - Net job creation rate
Reallocation rateTotal job creation rate + Total job destruction rate - absolute (net_job_creation_rate)
Firm deathsCount of firms that have exited in their entirety during the period.
Establishments associated with firm deathsCount of establishments associated with firm deaths
Employment associated with firm deaths Count of employment associated with firm deaths.