Calculating the Number and Percent of Workers in Your State by Establishment Size

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1 March 2009 Calculating the Number and Percent of Workers in Your State by Establishment Size Policy proposals for paid time-off programs often include an exemption for small businesses. (There are notable exceptions, to these policy proposals. For example, the policy that voters enacted in San Francisco in November 2006 affects all employers, with workers in smaller firms earning up to five days a year, and those in firms with 10 or more workers having a maximum of nine days.). Passing legislation that affects smaller businesses is often more difficult, because smaller businesses are more likely to claim that instituting such policies is a financial or practical burden for their organizations. i Because low-wage workers are concentrated in smaller firms, however, those workers will be disproportionately excluded by a policy that does not cover small businesses. This guide will help you determine how many workers in your state are employed by establishment size. ii Step 1. If you have DataFerret installed in your computer go to Step 4. Otherwise, access the Current Population web site Click the DataFerret link on the upper left hand side. After you click that link, you will be redirected to another screen. Step 2. In the right hand side bar click Download_ DataFerret. A dialogue window will ask if you want to run or save the application install file. Click Save. Select the directory where you would like the application to reside. Click Save again.

2 Step 3. When the download of the install application file is complete, select the Run button and follow the Install Shield Wizard prompts to install DataFerret on your computer. Once you have downloaded the software, a new DataFerret icon will appear on your desktop. Step 4. Click on the DataFerret icon to open the program. DataFerret will ask your e- mail address to log on. Type in your address and click Get Data Now. Step 5. Open the STEP 1: Select Dataset and Variable tab and select the Current Population Survey data set. Once you have selected the CPS click the + box and look up the most recent March Supplement. When you select the year you are interested in, a small window will appear. Click View Variables.

3 Step 6. After you click View Variables, a list of topics will come into view beside the dataset bar. Click Select All Topics and then click Search Variables to begin search. Step 7. Search your variables. You can either scroll down to locate the variables or type their name up at the search bar. When typing variables names at the search bar select: Variables, Labels, and Names. To select multiple variables at the same time use the Ctrl key. Hint: Use Deselect all values button if all categories are selected and you are interested in selecting only one Variables you will need: 1. A_CLSWKR: for information on the class of worker, (e.g. Private Sector, Federal Government, Armed Forces). Check the Select box and choose the following categories: Private, State Government, and Local Government GESTFIPS: for geographical information. The minimum unit of analysis is at the state level. Check the Select box, and choose your state. 3. NOEMP: for information on the total number of persons who work for an employer. Select all categories except NOT IN UNIVERSE. 4. A_LFSR: for information on the labor force status of the population. Select Working and W/job, not at work 2 1 Federal workers have paid sick days.

4 5. A_AGE: to restrict the sample for people aged 18 to 85. When you select the age variable, check the Select box and change the age range in the first box from zero to 18. Note: Step 7 and Step 8. will be repeated for each variable if only a single variable is selected. These variables are being selected and downloaded to support the calculation of the number of workers in your state that are employed by establishment size. You may choose to supplement this analysis by selecting the wealth of other data available in DataFerret. For example, you could choose to delineate the analysis by a demographic characteristic such as sex. In this case, select the additional sex variable (A_SEX) and choose the gender of your choice. Step 8. After you have selected your variables click the button Browse/Select Highlighted Variables. A window with the variable specific breakdown or/and categories will come up. Select the categories you need information on, and then click OK to add the variables at your Data Basket. Step 9. After you have completed adding the variables to the Data Basket, open the STEP 2: Databasket/Download/Make a Table tab. In this screen you will find a list of your variables. Once you have all variables needed click on the Make a Table button. When you click this button, DataFerret uses the appropriate weighting for your tables. 2 Denotes employed people that missed work on the survey week due to illness, vacation, leave or disability, but are actually employed. You need to use the total Working and W/job, not at work to estimate the number of workers in your state by establishment size.

5 Step 10. Now you have to drag the variables to the spreadsheet. First drag the GESTFIPS variable to the R1, C1 cell. Drag A_LFSR to R1, C3 (If you want to include the sex variable, drag it to the same cell (R1, C3). Drag A_SEX before dragging A_LFSR) Then drag the A_CLSWKR variable to R4, C1. Finally, drag the NOEMP variable to the R5, C2 cell. You do not need to drag the A_AGE variable; the sample will be restricted to the age range (18 to 85) that you selected when you added A_AGE. After you have completed dragging the variables click the bright-green Go Get Data button. Step 11. Congratulations! You have extracted the number of workers in your state by establishment size. Select your table, go to Edit in the menu bar and select Copy. Open a new excel spreadsheet and paste your table (Hint: you can use Ctrl +V ). Save your excel file for future reference. Step 12. Open the Excel Spreadsheet titled 3. Number Workers by Firm Size in this tool s Excel workbook. Copy the information on the total number of workers employed in the private sector by establishment size into the highlighted cells in Column B. Formulas in Column C will automatically calculate the percent of your state s workers who are employed in each size of establishment, and Column D will show the cumulative total. (That is, for each establishment size, Column D will display the total percent of workers employed in establishments of that size or smaller.)

6 For example, let s take a look at the data for Minnesota. Based on this table, you would find that a proposal for Minnesota limited to firms with 25 or more workers would exclude 36 percent of all workers and include (100 percent 36 percent ) 64 percent of all workers. Reference: DataFerrett includes a helpful tutorial which can be used as a complement to this guide and to learn more about the numerous features of the tool. The tool is accessed at This tool was prepared by the Institute for Women s Policy Research. This work was carried out with support from the Ford Foundation and the Annie E. Casey Foundation. The Institute for Women s Policy Research (IWPR) is a public policy research organization dedicated to informing and stimulating the debate on public policy issues of critical importance to women and their families. The Institute works with policymakers, scholars, and public interest groups around the country to design, execute, and disseminate research that illuminates economic and social policy issues affecting women and families, and to build a network of individuals and organizations that conduct and use women-oriented policy research. IWPR s work is supported by foundation grants, government grants and contracts, donations from individuals, and contributions from organizations and corporations. Members and affiliates of IWPR s Information Network receive reports and information on a regular basis. IWPR is a 501(c)(3) taxexempt organization. i For example, the federal Family and Medical Leave Act of 1993 is only applicable to establishments with 50 or more workers. ii To be precise, you will analyze the percent of workers by size of establishment, not by size of firm. An establishment is a single physical location of a company; a firm comprises all of a company s establishments. Data are not available at the level of firms, only by establishment.