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- Articles and reports: 11F0019M1999133Geography: CanadaDescription:
This paper highlights recent developments in self-employment in Canada and explores its relationship to unemployment/full-time paid-employment. There are now two and a half million Canadians working at their own businesses, amounting to 16.2% of the total labour force or accounting for 17.8% of total employment. In the first eight years of the 1990s, self-employment on average expanded by 4.1% per year, contributing to over three out of four new jobs the economy has created. Entry and exit data demonstrate that there are substantial flows into and out of this sector of the economy. Gross flows into and out of self-employment as the main labour market activity averaged nearly half a million per year between 1982 and 1994, amounting to 42% of the total self-employed population.
The fixed-effects modelling results show a statistically significant but empirically small negative (positive) relationship between self-employment and unemployment (full-time paid- employment). This conclusion holds true across different data sources, for different time periods, for different measures and definitions, for different empirical samples, and across various estimating techniques. There is also a statistically significant but empirically small negative (positive) relationship between exits out of self-employment and unemployment (full-time paid- employment). It appears that a host of non-cyclical factors are behind the recent surge in self-employment.
Release date: 1999-04-27 - Articles and reports: 11F0019M1999134Geography: CanadaDescription:
This paper i) documents the extent and cyclicality of self-employment entry and exit flows; ii) explores transitions to and from self-employment; and iii) investigates the influence of individual characteristics and labour market experience as well as macroeconomic conditions on the probability of moving into or out of self-employment.
The self-employed sector now employs over two and a half million Canadian workers, has expanded on average by over 4% a year so far in this decade and accounted for over three out of every four new jobs the economy has created. There are substantial flows both into and out of self-employment over the last 15 years. Gross flows into and out of self-employment averaged nearly half a million per year between 1982 and 1994, amounting to 42% of the total self-employed population.
Regression results reveal no statistical evidence supporting the dominance of the push hypothesis over the pull hypothesis --- the notion that people are increasingly pushed into self-employment by deteriorating economic conditions. This analysis is done both through time-series analysis and the analysis of the determinants of flows into (and out of) self-employment. As in paid employment, younger Canadians are subject to higher turnover in self-employment --- they are not only more likely to enter but also substantially more likely to leave self-employment. Prior paid-employment experience and prior self-employment experience are both found to be associated with a higher likelihood of entering self-employment. The longer one is self-employed, the less likely he/she is going to leave the business. Having a spouse in business (being self-employed) substantially increases the likelihood of the other spouse becoming self-employed --- a self-employed spouse often attracts the other to either join the family business or start their own. We also find evidence that steady family income through paid-employment from one spouse increases the self-employed's (the other spouse's) affordability to continue with the business venture and hence reduces the likelihood of leaving self-employment.
Release date: 1999-03-22 - Articles and reports: 11F0019M1997103Geography: CanadaDescription:
Canadians are increasingly concerned about permanent layoffs, as many feel job instability and the possibility of job loss has increased in the 1990s. Governments, confronted with a large number of permanent layoffs each year, need to know how to respond to improve labour adjustment and the possibility of quickly finding a new job for displaced workers. Within this context, this paper uses a new longitudinal data source on the separations of workers to address three issues. First, has there in fact been an increase in the permanent layoff rate in Canada in the 1990s, as one might anticipate given concerns about rising job instability? Second, what are the underlying causes of most permanent layoffs? The paper explicitly examines the role played by cyclical variation in aggregate demand, variation in industrial demand which is often associated with structural change, and differences in layoff rates by firm size which is in turn associated with the birth and death process of firms.
Third, with this as background, the core of the paper asks a question of concern to policy analysts: are most permanent layoffs rare events for workers, or are they a continuation of a pattern of repeat layoffs? This is important because a worker who is confronted with a layoff which is a rare event will require very different post-displacement adjustment assistance from someone whose history of employment has been marked with frequent layoffs, suggesting an inability to hold a job or demand-side instability in the firm or industry in which the person has worked. The workers' employment history over 10 years is used to explore the relationship between permanent layoff history and the probability of being laid off. Displaced workers are classified "low-risk", "medium-risk" and "high-risk" based on their layoff history, and multinomial logistic analysis is used to distinguish worker and firm characteristics associated with repeat layoffs or layoffs as rare events.
Release date: 1997-09-12 - 4. An overview of permanent layoffs ArchivedArticles and reports: 75-001-X19970033209Geography: CanadaDescription:
Many Canadians believe that job instability and job loss have increased in the 1990s. Using a new longitudinal data source, this article explores the role of the business cycle, changes in industrial demand, and firm size in the growth in permanent layoffs. An overview of the work displacement process is also included. (Adapted from an article in Canadian Economic Observer, February 1997.)
Release date: 1997-09-10 - Articles and reports: 11F0019M1996090Geography: CanadaDescription:
This paper outlines the structure of payroll taxes and documents evidence on the level, growth and role of each component over the last three decades for Canada and for each province. Levied by both the federal and provincial governments, payroll taxes in Canada include four major components: i) unemployment insurance (UI) premiums; ii) Canada/Quebec Pension Plan (C/QPP) contributions; iii) workers compensation (WC) premiums; and iv) the provincial health/post-secondary education (H/E) tax levied by Quebec, Manitoba, Ontario and Newfoundland. While the UI and C/QPP components are levied on both employers and employees, the WC and H/E components are levied on employers only. Our main findings are 1) payroll taxes have increased substantially over the last three decades in Canada as a whole and in every province; 2) the structure, level, growth and role of each component of payroll taxes vary remarkably from one province to another; 3) the expansion of the UI component in recent years has been the largest contributor to the rise in payroll taxes across every province in the country; and 4) despite significant growth in recent years, payroll taxes are still much lower in Canada than in most other western industrialized countries.
Release date: 1996-02-28
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Articles and reports (5)
Articles and reports (5) ((5 results))
- Articles and reports: 11F0019M1999133Geography: CanadaDescription:
This paper highlights recent developments in self-employment in Canada and explores its relationship to unemployment/full-time paid-employment. There are now two and a half million Canadians working at their own businesses, amounting to 16.2% of the total labour force or accounting for 17.8% of total employment. In the first eight years of the 1990s, self-employment on average expanded by 4.1% per year, contributing to over three out of four new jobs the economy has created. Entry and exit data demonstrate that there are substantial flows into and out of this sector of the economy. Gross flows into and out of self-employment as the main labour market activity averaged nearly half a million per year between 1982 and 1994, amounting to 42% of the total self-employed population.
The fixed-effects modelling results show a statistically significant but empirically small negative (positive) relationship between self-employment and unemployment (full-time paid- employment). This conclusion holds true across different data sources, for different time periods, for different measures and definitions, for different empirical samples, and across various estimating techniques. There is also a statistically significant but empirically small negative (positive) relationship between exits out of self-employment and unemployment (full-time paid- employment). It appears that a host of non-cyclical factors are behind the recent surge in self-employment.
Release date: 1999-04-27 - Articles and reports: 11F0019M1999134Geography: CanadaDescription:
This paper i) documents the extent and cyclicality of self-employment entry and exit flows; ii) explores transitions to and from self-employment; and iii) investigates the influence of individual characteristics and labour market experience as well as macroeconomic conditions on the probability of moving into or out of self-employment.
The self-employed sector now employs over two and a half million Canadian workers, has expanded on average by over 4% a year so far in this decade and accounted for over three out of every four new jobs the economy has created. There are substantial flows both into and out of self-employment over the last 15 years. Gross flows into and out of self-employment averaged nearly half a million per year between 1982 and 1994, amounting to 42% of the total self-employed population.
Regression results reveal no statistical evidence supporting the dominance of the push hypothesis over the pull hypothesis --- the notion that people are increasingly pushed into self-employment by deteriorating economic conditions. This analysis is done both through time-series analysis and the analysis of the determinants of flows into (and out of) self-employment. As in paid employment, younger Canadians are subject to higher turnover in self-employment --- they are not only more likely to enter but also substantially more likely to leave self-employment. Prior paid-employment experience and prior self-employment experience are both found to be associated with a higher likelihood of entering self-employment. The longer one is self-employed, the less likely he/she is going to leave the business. Having a spouse in business (being self-employed) substantially increases the likelihood of the other spouse becoming self-employed --- a self-employed spouse often attracts the other to either join the family business or start their own. We also find evidence that steady family income through paid-employment from one spouse increases the self-employed's (the other spouse's) affordability to continue with the business venture and hence reduces the likelihood of leaving self-employment.
Release date: 1999-03-22 - Articles and reports: 11F0019M1997103Geography: CanadaDescription:
Canadians are increasingly concerned about permanent layoffs, as many feel job instability and the possibility of job loss has increased in the 1990s. Governments, confronted with a large number of permanent layoffs each year, need to know how to respond to improve labour adjustment and the possibility of quickly finding a new job for displaced workers. Within this context, this paper uses a new longitudinal data source on the separations of workers to address three issues. First, has there in fact been an increase in the permanent layoff rate in Canada in the 1990s, as one might anticipate given concerns about rising job instability? Second, what are the underlying causes of most permanent layoffs? The paper explicitly examines the role played by cyclical variation in aggregate demand, variation in industrial demand which is often associated with structural change, and differences in layoff rates by firm size which is in turn associated with the birth and death process of firms.
Third, with this as background, the core of the paper asks a question of concern to policy analysts: are most permanent layoffs rare events for workers, or are they a continuation of a pattern of repeat layoffs? This is important because a worker who is confronted with a layoff which is a rare event will require very different post-displacement adjustment assistance from someone whose history of employment has been marked with frequent layoffs, suggesting an inability to hold a job or demand-side instability in the firm or industry in which the person has worked. The workers' employment history over 10 years is used to explore the relationship between permanent layoff history and the probability of being laid off. Displaced workers are classified "low-risk", "medium-risk" and "high-risk" based on their layoff history, and multinomial logistic analysis is used to distinguish worker and firm characteristics associated with repeat layoffs or layoffs as rare events.
Release date: 1997-09-12 - 4. An overview of permanent layoffs ArchivedArticles and reports: 75-001-X19970033209Geography: CanadaDescription:
Many Canadians believe that job instability and job loss have increased in the 1990s. Using a new longitudinal data source, this article explores the role of the business cycle, changes in industrial demand, and firm size in the growth in permanent layoffs. An overview of the work displacement process is also included. (Adapted from an article in Canadian Economic Observer, February 1997.)
Release date: 1997-09-10 - Articles and reports: 11F0019M1996090Geography: CanadaDescription:
This paper outlines the structure of payroll taxes and documents evidence on the level, growth and role of each component over the last three decades for Canada and for each province. Levied by both the federal and provincial governments, payroll taxes in Canada include four major components: i) unemployment insurance (UI) premiums; ii) Canada/Quebec Pension Plan (C/QPP) contributions; iii) workers compensation (WC) premiums; and iv) the provincial health/post-secondary education (H/E) tax levied by Quebec, Manitoba, Ontario and Newfoundland. While the UI and C/QPP components are levied on both employers and employees, the WC and H/E components are levied on employers only. Our main findings are 1) payroll taxes have increased substantially over the last three decades in Canada as a whole and in every province; 2) the structure, level, growth and role of each component of payroll taxes vary remarkably from one province to another; 3) the expansion of the UI component in recent years has been the largest contributor to the rise in payroll taxes across every province in the country; and 4) despite significant growth in recent years, payroll taxes are still much lower in Canada than in most other western industrialized countries.
Release date: 1996-02-28
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