11 predecessor successor editing program es2mi15
Predecessor/Successor Editing (Program ES2MI15)
The transfer of ownership of an establishment from a predecessor to a successor account is an important aspect of the longitudinal analysis of micro-level QCEW data. The ES2MI15 program performs a specialized set of edits for predecessor/successor pairs for which the change of ownership has occurred between the processed quarter, or at the end of the preceding quarter. Program ES2UT17 is used to select potential predecessor and successor relationships for the designated quarter, using a bilateral approach, but depending largely on the successor-to-predecessor successor selection rules that are outlined below.
Predecessor/successor selection logic underwent a complete renovation for Version 8.1 in conjunction with the BLS revamping of these edits. Previously, selection was based upon a predecessor going out of business. Now, the principal factor is the reverse – a successor becoming active during the processed quarter. As a result of the new approach, combined with the removal of the employment change edit (code 162), there is little similarity in the lists of selected predecessor/successor pairs between the two methods.
The BLS standard uses a special subscript for the accounts to designate the predecessor and successor parts of the equation. An “X” subscript declares the predecessor and a “Y” is the successor. These same notations will be used throughout this documentation as well. The BLS edit specs also use a “Z” subscript for predecessor (Y) looking for a successor, but this is not employed here, due to the potential for confusion that can follow from the dual coding standards.
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