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Latest developments in the evolution of short-term indicators in the ICBS. Yoel Finkel Central Bureau of Statistics, Israel. New Short-Term Indicators for the Labor Market. Use of Administrative Data for labor statistics: Administrative Data for Statistical Purposes: Pros and Cons
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Latest developments in the evolution of short-term indicators in the ICBS Yoel Finkel Central Bureau of Statistics, Israel
New Short-Term Indicators for theLabor Market • Use of Administrative Data for labor statistics: • Administrative Data for Statistical Purposes: Pros and Cons • Integration of the administrative data and survey data • International Experience • Tax Authority Records in the ICBS • New statistical indicators produced • Integration process • Job-Vacancy Survey: • Overview • Goals • Evaluation Survey • Problems met
Benefits of using administrative records • Source of rich and relatively cheap data for research. • Administrative files are of census type, covering the whole population. • Administrative records can substitute (or be complementary) for survey data and hence • reduce response burden cost on the citizens • relief the bureaus’ workload created by direct data collection.
Downside of using administrative records • Privacy and human rights issues: creating the ability to trace the activity of each individual in the society • The mere existence of a cheap data source may tempt statistical bureaus to collect data that are not really needed • Administrative records tend to be biased according to the priorities and policies of the agency in charge • Changes of definitions and content can occur without prior notice and without having a grace period in which the new and the old definitions are reported simultaneously • Administrative records include only variables of interest that the collecting agency needs • Do not include answers to subjective and hypothetical questions that may be of interest to the statistical bureau
Additional Properties • Administrative records include all the population. • On the other hand, it may increase the risk of illegal access to the information on a specific person by unauthorized workers / hackers • Administrative records are available only after the collecting process is completed – a delay of a year or two. • On the other hand, online collection reduces this effect.
Integration of administrative and survey data • The two rely on different sources that can be biased • Difference in definitions • Different time structure and time coverage • Different types of errors • In Survey data - The collecting agency is the sole decision-maker concerning what to collect, how to collect and when. In Administrative records • Collection of the data can be abruptly stopped • Changes are not always reported in advance • No period in which two datasets are collected simultaneously
Administrative data serving national statistics: international experience • Netherlands: • Demographic data on individuals and households from the local authorities. • Employment connections from social security and tax authorities. • Norway: employer-employment connections from tax and industry records. • France: population and employment register. • Sweden: linked database of demographic and employment records.
Administrative Records from theTAX AUTHORITY in the ICBS • Valuable data source on incomes. • Can be merged with other sources, like population and business register. • The integrated dataset comprises the information on the Labor Market, its supply and demand. • Databases for 1999-2005 already received and are being processed.
EMPLOYEES records From Population Register EMPLOYER records From BusinessRegister Tax Authority Records Merged Database Employer-Employee The merged employer-employee database
Main Uses • Creation of the database on the tax reported incomes of all the individuals in the country. • Construction of the otherwise costly and complicated panel, supplying data on social and employment mobility. • Priceless addition to wage and employment statistics: • Employees and Employee Posts by sex, age, marital status; • Employees and Employee Posts by wage and employment duration; • Women employed, by number of children; • Wages, by experience, or demographic parameters; • Compensations on retirement / firing, by experience, age, sex and sector; • Estimation of employer’s size by number of employees months.
What has been done to match the statistical needs of the ICBS? • Number of records checked: to assure the file is complete and refers to the period defined. • Field properties defined in order to analyze the goodness of the data: extreme or not permitted values located. • The database was linked to the population register to fill additional demographic data. • Logical checks: for example, duration of work against the dates of beginning / end of work.
Job Vacancy Survey: Overview • The Job Vacancy Survey launched following the OECD demands as part of the accession process. • It is designed to evaluate the demand part of the labor market – the number and nature of the job vacancies. • Its scope is planned to be the largest out of the business surveys the ICBS produces.
Development of a Job Vacancy Survey: Goals • Estimating the demand for labor (stock / flow) • Labor supply is estimated by the (already existing) Labor Force Survey • Evaluating the demand for labor by • Industries • Establishment size • Occupation etc. • Spotting the sub-groups in the labor force mostly influenced by market changes • Defining the parameters assisting the labor force (education), thus permitting to design appropriate training programs.
Survey Specifications • Monthly survey. • 6,000 establishments surveyed each quarter. • 1,000 large establishments (of 250 employees or more) surveyed repeatedly each month, others on the rotation basis. • The survey is planned to be launched on January 2009. • NOT included: public offices,
What has been done? • Consultation with the future users of the survey: • The Ministry of Industry, Trade and Labor • Central Bank of Israel • Manufacturers Association of Israel • Pre-test survey successfully completed. • Now in the process of the evaluation survey.
Evaluation Survey: WHY NEEDED? • To define the final population of the survey • By sectors (esp. construction and agriculture) • Establishment size bound (what is the magnitude of the bias from setting the specific bound) . • To determine the appropriate data collection methods (post, telephone, field) and the establishments reaction time. • To evaluate the questionnaire suitability. • To examine the availability of the necessary data among the respondents. • To access the problem of locating the establishments. • To estimate the time input by the surveyor.
Evaluation Survey • 1100 establishments surveyed for 2 months: • 400 small businesses (up to 5 employees) • 300 large (of 250 employees and more) • 400 medium-sized • 2 stages • Locating the establishment (March-April) • Whether the establishment exists? Who is the right person to contact? Are the establishment details correct? • Data collection (May-June)
Main Methodological Problems • “Kibbutz”: – problematic issue because they appear more than once in the business register: once as a joint cooperative, and as several separate establishments. Thus, they could be sampled more than once, without us being able to identify they are the same entity. • Conglomerates / joint firms: – how to deal with them? • Public organizations: whether they belong to the government sector or a specific industry? Whether to survey them separately – or through the Civil Service Authority which concentrates their activity? • Public hospitals (health sector). • Broadcasting companies (communication sector) etc. • Teachers: part of them employed through the Ministry of Education, while others – through local authorities.