The Importance of Firm-Level Data for Empirical Research and Economic Policy Consulting

The quality of empirically based economic policy advice critically depends on the quality of underlying data used for the analysis. Over the past decades, more firm-level data have become available in many economic fields including, e.g., industrial and labour economics. This enables empirically orientated economists to put forward more profound economic policy proposals. As regards industrial organisation and international economics, economic research increasingly draws on high-quality firm-level data. Access to individual firm data is available in exceptional circumstances only, due to problems of anonymisation. Nevertheless, in recent years many EU countries have facilitated access to firm- and plant-level data, a process which is welcomed by economic researchers and should be continued and enhanced.