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This paper emanates from a study of the job generation effect of new firms in St. Joseph County, Indiana. It discusses the methodological problems associated with identifying the new firm and compares the results of a search from three sources, the County Unemployment ES202 Files, the Telephone Directory, and the Dun and Bradstreet Market Identifier Files (DMI). Significant differences emerge. If DMI is used, the basis of the Birch Report, 96% of the new firms found in ES202 would fail to be recorded. The paper concludes that the wide variations found suggest that the data base chosen can significantly affect the results of any study of new firms.
Sue Birley (Wed,) studied this question.