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Establishment Survival Using the BLS Longitudinal Database

Merissa Piazza and Amy Knaup


In a May 2005 Monthly Labor Review article, "Survival and Longevity in the Business Employment Dynamics Data," Amy Knaup shows that about 60% of business establishments that opened in second quarter of 1998 were still in existence 24 months later. Her article also examined other interesting aspects of firm survival, including the characteristics of opening establishments according to two-digit NAICS sector, location, employment levels, ownership status, and survival rates. It is the goal of this paper to re-examine the characteristics of establishment survival for 1998—2004 using the BLS Longitudinal Database (LDB). The LDB is a relational database of 8.4 million business establishments linked longitudinally based on microdata submitted quarterly.