LEHD OnTheMap Data. TRB Using Census Data for Transportation Irvine, CA. Bruce Spear. October 26, Presented to: Presented by:

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1 LEHD OnTheMap Data Presented to: TRB Using Census Data for Transportation Irvine, CA Presented by: Bruce Spear October 26, 2011 Transportation leadership you can trust.

2 Acknowledgements Findings from NCHRP 8-36, Task 98 Improving Employment Data for Transportation Planning Sponsored by AASHTO Standing Committee on Planning Final Report posted at /NCHRP08-36(98)_FR.pdf 2

3 What is LEHD? Longitudinal Employment Household Dynamics Program to generate new information on workers and employers from existing data sources Developed by U.S. Census Bureau in coordination with state partners Based on administrative records Includes all employment subject to state unemployment insurance (UI) laws 3

4 LEHD Data Products Quarterly Workforce Indicators (QWI) Quarterly data on employment dynamics (total employment, job creation, wages, and worker turnover) LEHD Origin-Destination Employment Statistics (LODES) Annual data on locations and characteristics of workers by residence and workplace, and home-to-work flows 4

5 LEHD - OnTheMap Web-based mapping and reporting application Supports multiple analyses involving workplace and worker residence locations Queries supported at multiple levels of geography (Census Blocks, Tracts, zip codes, places, urbanized areas, counties, states) Worker characteristics include: industry type, age, income, gender, race, ethnicity, and education 5

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9 LODES Data Files 1. Residence Area Characteristics (RAC) Number and characteristics of workers summarized by residence geography and reporting year 2. Workplace Area Characteristics (WAC) Number and characteristics of workers summarized by workplace geography and reporting year 3. Origin-Destination Flows (OD) Number and summary characteristics of workers who reside in one location and work in another location 10

10 LODES Data Sources Employer Characteristics Quarterly Census of Employment & Wages (QCEW) Reported quarterly by employers to State employment security agencies (SESA) (formerly known as ES-202 data) Funded and managed by BLS (data quality and integrity) Enhanced employer files contain data on total monthly employment and total wages by quarter Multiple Workplace Reports (MWR) provide workplace employment data for employers with multiple worksites. 11

11 Data Sources (continued) Worker Characteristics Personal Characteristics File (PCF) Derived from Social Security Application File (Numident) Gender, DOB, Race, Citizenship Composite Person Record (CPR) Derived from multiple sources (IRS, Medicare, HUD) Based on worker s SSN Worker place of residence Wage Records List individual employees by social Security Number (SSN) Provide key link between workers and employers 12

12 LEHD Processing Steps 13

13 Disclosure Proofing LEHD records are subjected to disclosure proofing to protect worker/employer identities Small amount of noise introduced into employer characteristics at establishment level Worker characteristics at residence synthesized based on industry code, age and earnings Some data suppression for small geographic units Actual distributions are retained at more aggregate levels of geography and industry groups 14

14 LODES Data Limitations 1. Excludes some employment categories Self-employed & Sole Proprietors (6% - 17%) Federal/Military/Railroad Workers (1% - 20%) Employment exempt from UI laws (0% - 2%) 2. Data not currently produced for all States States missing data: DC, MA, NH, PR, VI 15

15 LODES Data Issues Multiple Worksite Employers Some multi-worksite employers refuse to file multiple worksite reports (MWR) Employers with multiple worksites may show all employees located at primary employer address MWR non-compliance affects about 5% of all employment, nationwide: Rates vary significantly from state to state Lower in States with mandatory MWR reporting Highest non-compliance among local government agencies 16

16 LODES Data Issues Assigning Workers to Worksites Only one state (Minnesota) requires employers to identify worksites on employee wage records Workers of multi worksite employers are assigned to worksites based on a distribution model calibrated using MN data. 17

17 LODES vs. CTPP LODES is NOT a substitute for CTPP No trip characteristics in LODES (mode, travel time, departure time) Public sources of employment data for transportation planning: Residence/Workplace locations Origin-destination flows for work trips 18

18 LODES vs. CTPP (3-Year) Summary Characteristics Sample Size Geographic Coverage Employer/Industry Categories Job Categories LODES ( ) CTPP Full enumeration for covered employment categories Excludes non-participating LED States (DC, MA, NH) Excludes employers not subject to State UI laws Includes all jobs by workers in covered employment categories ~ 7 percent of households in 3-year ACS sample Excludes counties with less than 20,000 population All employers and industry sectors in sample universe Excludes second jobs by workers with multiple jobs 19

19 LODES vs. CTPP (3-Year) County Level Findings Both LODES and CTPP under report total employment by %, nationally and by state LEHD excluded employer categories & non-led states CTPP secondary work trips and suppressed data CTPP (3-Year) produces significantly higher OD trip rates than LODES, but distributes them over many fewer county pairs. 20

20 LODES vs. CTPP (2000) Tract Level Findings CTPP (2000) produced higher OD trip rates than LODES, but distributed them over many fewer Tract-to-Tract pairs. Differences in flow rates between common Tracts were much smaller Differences in employment for individual Tracts could generally be attributed to: Missing employment categories in LODES New development occurring after

21 Work Trip Length Distributions 22

22 General Findings LODES is a good source of data on the distribution of home-to-work flows More comprehensive and current than CTPP LODES data should be used carefully and supplemented with local knowledge Missing employment categories Multiple worksite employers 23

23 Research Needs Better documentation of LEHD processes: Synthesis of worker characteristics for small geographies Assignment of workers to worksites for multi-site employers Further analysis of LODES O-D distributions Alternative sources for missing employer data Strategies for integrating LODES and CTPP 24