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What Do Census Data Tell Us About Headquarters Location?

Federal Reserve Bank of Chicago

This article provides insight into several topics that are closely linked with firms’ decisions on headquarters location. Reviewing previous studies, the author examines characteristics of firms that have stand-alone headquarters and compares them with the characteristics of firms that perform management at their production facilities. The frequency of openings and closings of headquarters is also examined. The locations of headquarters are further compared with the geographical distribution of other economic activities among major U.S. metropolitan areas. The author then shifts the focus to New York City, which is often considered the nation’s primary headquarters center, and compares New York’s Primary Metropolitan Statistical Area’s share of headquarters with its share of business service industries. The author then looks into the distribution of headquarters and other service industries in Manhattan, points out their differences, and provides possible explanations.

Key Words: headquarters • business services • outsourcing

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