Enhanced demographic-economic data sets

Survey of Current Business, Nov, 1988 by Roger Herriot, Chester Bowie, Daniel Kasprzyk, Sheldon Haber

In merging SIPP demographic data and economic data, it is necessary to know the information contained in the various files to be linked and how each file is constructed. Three data sets that might be incorporated into a SIPP-economic data file are the Standard Statistical Establishment List (SSEL), the Longitudinal Research Database (LRD) file, and the enterprise statistics (ES) file.

The SSEL is a complete directory of establishments in single-establishment and multiestablishment enterprises with one employee or more, irrespective of industry. The SSEL links parent companies, subsidiaries, and their establishments. It contains information on approximately 4.7 million enterprises and 5.7 million establishments.

The SSEL is important because it is a current file containing a complete list of establishments and companies that have paid employees. Although the SSEL contains only a narrow range of economic data, these data impart information not found elsewhere. For example, the SSEL contains the addresses of the physical locations of establishments; this information is useful for merging the demographic and economic data, since the addresses are a primary way of identifying an individual's place of work. Employment and payroll figures yield an estimate of average annual earnings, thereby indicating whether an employer is a low- or high-wage employer. Sales and employment figures provide a proxy measure of productivity. Operational status information can be utilized to identify those establishments that have become inactive. Additionally, the SSEL contains longitudinal information. Currently, establishment and company data are carried for 2 years in the SSEL.

The LRD is a longitudinal micro database containing data at the establishment level from the Annual Survey of Manufactures and the Census of Manufactures. The LRD provides a broader range of information about establishments than the SSEL. For each manufacturing establishment, value added per production worker, which is a proxy for labor productivity, can be calculated. For the larger establishments with 250 workers or more, information is available on depreciable assets and rented machinery so that capital-to-labor ratios can be computed. Additionally, a measure of labor compensation, including fringe benefits, can be obtained.

Like the Census of Manufactures, the ES data are collected every 5 years. These data cover enterprises whose primary activities are in in-scope industries. For each enterprise, the data are consolidated from all operating units. The information contained in the ES is similar to that in the Census of Manufactures; however, the ES contains fringe benefit, asset, and related data only for companies with 500 workers or more. Haber (1985) has presented a detailed accounting of the economic files--their universe restrictions, data content, and applications--when merged with the SIPP data. Some applications of microdemographic and economic data

In this section, two applications of a SIPP-economic data file are discussed to illustrate the use of this data set.