Establishment surveys Introduction Most common data collection method to collect information about economic units Production, costs, sales Number of workers engaged, wages and hours of work What they do: Collect data on a sample of economic units In a well delimited geographical area During a specified reference period Characteristics: Can be carried out frequently: monthly, quarterly, yearly Should be based on a random sample of units 113
Establishment surveys Coverage Generally, cover establishments above a certain size Exclude micro-establishments and home-based units This is because they are based on samples taken from list-based sample frames Using information from administrative registers and Economic Censuses Usually cover small units poorly Because they have a higher turnover rate (are born and die faster) Because they are seasonal Because they are more mobile Because they are not registered at all So they are not adequate for measuring the informal sector 114
Establishment surveys Coverage: surveys that cover the informal sector Need to use an area-based sample frame Same principle that area-based sample frame for household surveys Because they do not need to be updated to be useful we assume that the density of units within areas remains stable Can use a dual frame That covers all economic units in the country Divides the statistical universe of economic units into two frames: List-based frame for large registered units clearly defined Area-based frame for all other units (a subset will be in the informal sector) 115
Sample design: Establishment surveys Dual frames: sample design and frequency Census of large units Selection of medium units using the list-based frame Selection of all (small) units using the area-based frame Frequency of data collection: Medium and large units can be surveyed frequently, e.g., once a month, a quarter, etc. Small units can be surveyed less frequently, e.g., once a year, every 3-5 years, etc. This design: (a)maximizes efficiency of list-based sample for units that it can cover with confidence; and (b) Allows for smaller units to be included as well 116
Establishment surveys using dual sample frames Economic units in a country Economic units covered in the list-based sample frame Large economic units All large economic units are included in the sample (complete enumeration) Medium economic units List-based frame is stratified according to geographical location, industry and size Stratified random sample of medium economic units is selected Other economic units (with fixed premises or household- based): covered by area-based frame Area-based frame is stratified according to geographical location, concentration of small economic units and their predominant industry Stratified random sample of areas (PSUs) is selected Within each selected PSU: listing of all economic units; list is stratified according to dominant industry and type of premise (fixed, householdbased); list excludes units in the listbased frame Stratified random sample of economic units within PSUs is selected 117
Establishment surveys Observation units: the establishment The most suitable statistical unit for which production statistics are to be compiled It is important t to delineate establishments t in multiestablishment enterprise (very very few cases) All informal sector activities carried out by one person are part of the same enterprise Therefore, an informal sector enterprise may be very large if it is made up of many small establishments In countries where small units do not need to be registered, entrepreneurs may prefer to have a large number of small units Activities carried out by different household members may be considered as separate informal sector units In SNA all units owned by members of the same household belong to the same enterprise 118
Establishment surveys Reference period Depends on data collection frequency Monthly surveys One month Quarterly surveys One quarter But for small economic units Make it as easy as possible for respondents Flexible reference periods: A day, week, month Convert to standard reference period post-survey Obtain information about the periods not covered with broad questions Higher activity than reported period/same/lower activity/no activity) 119
Establishment surveys Reference period: Example of a flexible reference period 120
Establishment surveys Reference period: example of covering other periods with broad questions 29. How did the business activity fluctuate within the past 12 months Month Higher Normal Lower Inactive January February March April May June July August September October Novembre December 30. In the month of highest activity, what 33. In the month of highest activity, what was the average value of sales, income or was the average cost of the merchandise sold production in the unit? or the raw materiales, and packaging? 31. In the month of normal activity, what 34. In the month of normal activity, what was the average value of sales, income or was the average cost of the merchandise sold production in the unit? or the raw materiales, and packaging? 32. In the month of lower activity, what 33. In the month of lowest activity, what was the average value of sales, income or was the average cost of the merchandise sold production in the unit? or the raw materiales, and packaging? 121
Establishment surveys Data collection approaches Directly from managers/entrepreneurs Self-completion method Questionnaires are sent by mail/email to economic units Requires to know where these units are, i.e., complete lists Canvasser method Trained interviewers request information to managers/entrepreneurs either face to face or by telephone Preferred method for informal sector units Entrepreneurs are not sufficiently literate There are no complete accounts in the economic units Complete lists of economic units do not exist Combine self-completion and canvasser method Self-completion for large units within list-based frame Canvasser method for all other units Use administrative information or combination 122
Establishment surveys Data items Characteristics ti of the establishment t Registration Bookkeeping Environment Links with formal sector units, government Access to credit Membership to cooperatives (credit unions) Constraints/problems Whether part of a larger unit Characteristics of the workers Wages, social security contributions Status in employment Social security protection of workers Entitlement to vacations Production information 123
Establishment surveys Data items: registration 6. Is this establishment registered in the commercial register? Yes -> go to 7 No -> go to 8 No response -> go to 8 7. Did you obtain or renew this register in <current year> Yes No 124
Establishment surveys Data items: registration 125
Establishment surveys Data items: bookkeeping 11. How are the accounts carried out? Daily logbook Balance sheet Other type of accounts (for personal purposes) No accounts 126
Establishment surveys Data items: relations with government and problems faced 127
Establishment surveys Questionnaire design Standard questionnaire In list-based surveys, industry-specific questionnaires, but not practical for area-based survey Consider that... These units do not have accounts and rely on recall Respondents may mix their personal with the business operations In order to minimize non-response items Simplify questions!! Fewer data items Less detail Shorter reference periods Training i of interviewers i is essential!! This approach is also used also in industrialised i d countries 128
Establishment surveys Questionnaire i design: employment questions in Colombia survey Type of staff Total Men Women Wages Social security contributions Partners, owners, contributing family workers Employees with contracts, regular Casual employees Colombia uses a questionnaire of 4 pages 129
Establishment surveys Questionnaire i design: employment question in 1-2-3 survey The 1-2-3 survey questionnaire has 19 pages 130
Establishment surveys Questionnaire i design: production questions in Colombia survey D. Production, sales or income 27. What was the total value of production, sales or income of the establishment during the reference month? Definitions Production (for manufacturing units): value of what was produced, independently whether it was sold or not, valued at sale price Sales (for trade units): gross value of all items sold Income (for service units): gross value of all services rendered 131
Establishment surveys Questionnaire i design: production questions in 1-2-3 survey 132
Establishment surveys Questionnaire i design: production questions in 1-2-3 survey (cont d) 133
Establishment surveys Questionnaire i design: inventories i in Armenia survey 134
Establishment surveys Sample frames List-based sample frames Most common frame for establishment surveys Constructed on the basis of... Administrative registers kept for tax purposes, social security schemes A previous establishment t census Area-based sample frames Relatively new A few countries use them to complement list-based frames Industrialised and developing countries When they already have a list-based establishment t survey Constructed on the basis of... An establishment census Other sources: population census 135
Establishment surveys Sample frames: list-based sample frame Requires on-going maintenance and coordination mechanisms with administrative units To include new units and exclude dormant or dead units in a timely manner To guarantee complete coverage as much as possible What does it look like? It is a list of economic units, with information about their... Name and address Kind of activity Size or size category (number of employees/persons engaged or level l of production) Institutional sector 136
Establishment survey List-based sample design Stratification: organization of units in the frame according to : Kind of economic activity Geographical area Size categories Selection of units within each strata using one stage of selection 137
Establishment surveys Sample frames: area-based sample frame Requires an Establishment Census... That covers all establishments Even those without visible premises Even those that are carried out within dwellings That contains the items required for identification units not included in list-based registers Size categories usually Information about bookkeeping, registration, etc. can be collected in the survey for identification of the informal sector What does it look like List of areas (EAs) with information about... Number of potential economic units, disaggregated by Kind of economic activity Size categories 138
Establishment surveys Area-based sample design Stratification: each EA in sample frame is assigned to a strata according to its These strata are less Geographical area homogeneous than in list-based samples Density of small units (high/low) Dominant kind of economic activity (either the most common or the most important) Selection of EAs separately within each strata (PSUs) Usually, proportional to size Listing operation * Within each selected PSU, canvassing of all buildings Identify relevant (within scope) economic units Selection of economic units within selected PSUs Generally, using systematic stratified sampling 139
Establishment surveys Area-based sample design Assumes that concentration of economic units remains stable in each EA Between the time of the establishment census and the selection of PSUs Only PSUs need to be updated Are more expensive than list-based samples 140
Establishment surveys Area-based sample design: listing operation Training i of interviewers i is essential To identify all units, including household-based and itinerant To avoid double-counting of economic units For each PSU, the assigned interviewers will have... A list of within scope economic units in the PSU, together with information about their name and address, their size and kind of economic activity A list of economic units which are part of the list-based frame (i.e., large and medium formal units) A map showing where each premise is located A listing form to enter the information Should not be limited it to simple listing operation Should inquire about kind of economic activity, number of persons engaged, etc. 141
Establishment surveys Area-based sample design: listing form Province: District: Building No. Total units in the building Unit ID Town: Enumeration Area ID: Unit Housebased Floor Purpose type 1-0 - 1 - Housing -> Within this Whole Ground go to (7) dwelling, building floor 2 - Business -> does your 2 - One 1 - First go to (8) household floor floor 3-3 - More 2 - than one floor 4 - Other Second floor etc. carry out with Name of the Unoccupied regularly an business or 4 - Other economic owner of business activity to obtain an income? 1 - yes -> go to (8) 2 - no -> finish Address/ telephone/ email Status List 1-1 - in open the 2 - list closed 2-3 - not reject in the list Usual Main kind number of activity of worker (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) 142
Establishment surveys Area-based sample design: listing operation Interviewer should canvass the entire PSU Visit every premise (business and living quarters) Fill in information on the listing form Update existing maps and lists Compare the information collected with existing materials If a unit is found that is contained in the list-based sample frame, it is excluded from the listing operation (out of scope unit) All others are within-scope scope, even if they should be in the list-based frame (but should be flagged for eventual inclusion) Pay attention to units that carry out activities in different places Production of a good in the home and sale of the good in the market or in a fixed stall in the street Could be listed in two different places (as two establishments) BUT Better to list them in the place where the main activity is carried out, i.e., listed in the location of the production activity Production of a good in a fixed premise but stocking of materials in dwelling Idem, i.e., listed in the location of the fixed premise 143
Economic Censuses Introduction Collects data separately about each economic unit In a country In a well delimited part of the country (urban areas, capital city) During a specified reference period Compiles, evaluates, analyses and disseminates Relevant statistics about these units Structural and benchmark statistics Not useful for short-term planning, monitoring business cycles, or for national accounts Expensive and large scale operation that is carried out infrequently Is used to construct a register of business and an area sample frame 144
Data items Generally few: Economic Census Data items and reference period Name and address Kind of economic activity Legal and ownership status Sometimes may include, for all or a sample: Number of workers engaged g Volume of sales Value of expenditure Value of output Expenditure Reference period One year But only practical for larger economic units that keep written records of purchases and sales Shorter, such as one month For small economic units 145
Economic Census Coverage Generally, incomplete coverage Generally cover economic units above a certain size Even when they cover microenterprise, they tend to exclude activities carried out within dwellings Tailoring, food processing, etc. and itinerant activities Transport, ambulant trade, construction To cover all economic units... Need to canvass all buildings Business premises Living quarters To establish whether an economic unit operates within Many informal sector activities are carried out within dwellings or from dwellings (itinerant activities) 146
Economic Census combined with Population census Economic censuses can be carried out together with the Population Census Listing of buildings and dwellings at the same time Both Censuses should use the same enumeration areas (EAs) Reduce overall costs Economic census can cover economic units with visible premises Population Census can cover economic units within dwellings as well as itinerant activities Has been done in: India, Egypt, Colombia, Indonesia 147
Dual approach: Economic Census Data collection approach Direct interviews for smaller units that require assistance Self-completion for units that keep records of sales and expenditures (medium to large units) 148
Population Census as source for area-based frames Are the main source for area-based frames of households Can be used to select establishments t when no Establishment Census exists Each EA can provide information on entrepreneurs (own account workers, employers and members of producers cooperatives) residing in the area By the kind of activity of their economic units Maybe by size of the economic unit Requires assumption that density of entrepreneurs is similar to density of economic units in each EA 149
Mixed surve eys of ho ouse ehold and enter rpris ses Mixed modular surveys Mixed independent surveys
Mixed surveys Overview Introduction Two broad types Mixed modular surveys Requirements Process Sample design Mixed independent surveys Process Sample design Dual frames Mixed surveys compared to Establishment surveys Good practices 151
Mixed surveys Introduction Are conducted d in 2 phases: First phase A sample of PSUs is selected Information is obtained from all or a sample of households about economic activities of their members (Potential) informal sector entrepreneurs are identified -> sample frame for second phase Second phase All or a sample of (potential) informal sector entrepreneurs are questioned about their informal sector unit (informal sector survey) Underlying principle It is easier to identify informal sector units through their entrepreneurs than through their place where they occur Because so many are household-based and itinerant 152
Mixed surveys Two broad types Mixed modular surveys Use an existing household survey in the first phase (base survey) Sample may or may not be selected considering informality as a critical variable Second phase survey (to informal entrepreneurs) may be carried simultaneously with first phase survey Mixed independent surveys Listing operation in the first phase Sample is selected considering informality 153
Two broad types of mixed surveys Modular survey Independent survey First survey phase Sample design Sample of PSUs and households of base survey (sample design may or may not take into consideration informal sector density) Sample design Same sample of PSUs as base survey (sample design may or may not take into consideration informal sector density) Sample design Independent sample of PSUs (sample design always takes into consideration informal sector density) Base household survey (e.g., labour force survey, income and expenditure survey, etc.) Listing of all households and household h members (within selected PSUs) Second survey phase Frame of informal sector entrepreneurs: List of informal sector entrepreneurs in PSUs Sample design Selection of all or a sample of informal sector entrepreneurs in PSUs Frame of households with informal sector entrepreneurs: List of households with informal sector entrepreneurs in PSUs Sample design Selection of all or a sample of informal sector entrepreneurs in PSUs First and second survey phases can be simultaneous operations First and second survey phases are consecutive survey operations 154
Mixed modular surveys Requirements Existence of suitable base survey Has to have a labour force component Labour force survey best choice Multi-purpose survey Household income & expenditure survey Informality should be a major objective in the sample design Feasibility of attaching an informal sector module With relevant questions to identify informal sector entrepreneurs Bookkeeping, registration, size, payment of taxes,... Use broad criteria to identify potential informal entrepreneurs Because there is proxy response, it is better to identify more persons that can be filtered later with the informal sector survey Consider response burden 155
Mixed modular surveys Process Selection of EAs as primary sampling units (PSUs) Listing of dwellings/households in PSUs Selection of dwellings/households h ld First-phase questionnaire to household members Identification of potential informal sector entrepreneurs First and second jobs should be identified!! Construction of list-based frame of informal sector entrepreneurs Selection of all or a sample of informal sector entrepreneurs Second-phase questionnaire to informal sector entrepreneurs (informal sector survey) 156
Mixed modular surveys Sample design Selection of PSUs when informality is a major objective Requires a sample frame with information on informal entrepreneur density (% of informal entrepreneur in each EA) by kind of activity it and other characteristics ti Broad industry groups, e.g., trade, manufacturing, transport, repair, other services Other characteristics: registration, type of premise (household-based, fixed premise), type of entrepreneur Select EAs using Probability Proportional to Size (PPS) So that EAs with high density of informal entrepreneurs have a higher chance of being selected EAs with high density of informal entrepreneurs in not-common industries can be given a higher chance of being selected (e.g., transport, t repair and other services as compared to trade and manufacturing) Simpler approach is to select more PSUs but expensive 157
Mixed independent surveys Process Selection of EAs as PSUs Listing of dwellings/households in PSUs Obtain demographic and work characteristics ti (status t in employment, size of unit, registration, bookkeeping) Main and secondary jobs should be covered!! Identification of dwellings/households with potential informal sector entrepreneurs Construction of list-based frame of households with potential informal sector entrepreneurs Selection of a sample of households with potential informal sector entrepreneurs Questionnaire to informal sector entrepreneurs (informal sector survey) 158
Sample of PSUs Mixed independent surveys Sample design Should share commonalities with sample of PSUs in other surveys May be, or may include, the same PSUs as in other surveys Will differ in stratification in the sample (by kind of activity), as well as in the critical variable used (density of informal sector entrepreneurs) Sample frame Population Census best source Information on number of informal entrepreneurs in each EA by kind of activity (broad groups) and other characteristics. EAs may be clustered Increases the chance of finding informal entrepreneurs But decreases efficiency of the sample 159
Mixed independent surveys Sample design: stratification To increase sample efficiency At the first stage (selection of PSUs) Not at later stages, in order to simply field implementation Ideally, stratification of EAs should be based on: Density of informal entrepreneurs in broad kinds of activity Trade Manufacturing Services (repair, transport,...) As trade tends to dominate the informal sector, oversample EAs with less common kinds of activity For example, if services make up only 10% of all informal entrepreneurs, then if the EA has more than 10% informal entrepreneurs in services, assign the EA to the services strata 160
Mixed independent surveys Sample design: selection and listing of PSUs Selection using Probability bilit Proportional to Size (PPS) Areas with high informal entrepreneur density are sampled at a higher rate EAs with low informal entrepreneur density If selected with PPS, then very few will be selected Perhaps select them with constant probabilities Excluding them is NOT recommended Listing of households within PSUs Canvassing all dwellings and obtaining information about each household member Their current activity status If employed: their status in employment If own account workers, employer or member of producers cooperatives: size of unit, place of work, bookkeeping, registration, etc. Quality of listing operation is essential to construct sampling frame of households with informal entrepreneurs 161
Mixed independent surveys Sample design: listing of PSUs (Brasil) Munici Sub- IBGE District pality district i t Sector Control Urban informal economy Listing registry page Identification of units Residents 10 years and above Idefintificati In any Activities carried out Line Name of Name of residents Number on or Od Order of their number person month Name of place Type reference who worked last of place description number jobs A B C of the unit was... 1 2 3 4 5 6 7 8 9 10 11 12 01 02 03 Type 1 -Individual occupied Status 1 Domestic Activity 0 - Agriculture 6 - Real estate, rent and column2 - Individual closed column Workers (finish) columns 1 - Mining services to business 5 3 - Individual occasional 9 2 - Own acccount 10-12 2 - Civil construction 7 - Education, health and use 3 - Employer with 3 - Trade and repair social services 4 - Individual unoccupied Less than 5 4 - Accomodation and food 8 - Other collective, social 5 - Collective Employees 5 - Transport, storing and and personal services 6 - Non-residential 4 - Other (finish) communications 9 - Other activities 162
Mixed independent surveys Sample design: selection of households of informal entrepreneurs Using uniform rates Selection is straightforward Simplifies this stage, given that survey operations are so complex Aim at fixed sample sizes To increase control of survey operations Variations in sample sizes and workloads with a self-weighted sample design may be more serious problem in mixed surveys because data collection is more complex Sometimes additional stratification is needed By kind of activity, sex of entrepreneur, type of workplace, type of enterprise But should be avoided in order to not over complicate operations Never depart from probability sample!! 163
Mixed surveys Dual frames Two types of economic units Fixed premises located away from the household of the owner Household-based activities and itinerant activities Fixed premises... Are fewer in number Require higher sampling rates Are concentrated in different places than household-based activities In non-residential areas Interviewing at the place of work should be carried out 164
Mixed surveys Dual frames: number and types of frames Two frames Area-based establishment frame Sample of PSUs for establishments with fixed location Area-based household frame Sample of PSUs for household-based and itinerant entrepreneurs One frame, two separate samples Area-based household frame Sample of PSUs selected based on density of informal entrepreneurs with fixed locations Separate sample of PSUs selected based on density of informal household-based and itinerant entrepreneurs Requires controls to exclude out-of-scope units!! 165
Mixed survey Dual frames: sample design First survey phase Base household survey (e.g., labour force survey, income and expenditure survey, etc.) or Listing of all household and household members (within PSUs) Household-based and itinerant actvities Listing of all visible economic units (within same or different PSUs) Fixed premises outside of entrepreneur s dwelling Second survey phase Sample frame of entrepreneurs Sample frame of visible ibl economic units List of household-based and mobile informal List of visible economic units that belong to the sector entrepreneurs informal sector, based on listing operation within based on listing of households in PSUs or base PSUs household survey Sample design Selection of a sample of household-based and mobile informal sector entrepreneurs within PSUs Sample design Selection of a sample of visible informal sector units in PSUs (separate sample design) First and second survey phase are consecutive survey operations 166
Mixed survey Dual frames: advantages and limitations Advantages More efficient sample Limitations More costly More complex field operations Risk of double-counting units if proper controls are not in place 167
Mixed surveys compared to establishment surveys Establishment survey First phase: listing operation of buildings: businesses or dwellings where economic activities are carried out First phase: identifies potential informal sector economic units Informal sector units are located within selected PSUs; their owners may reside outside Generally target economic units not included d in list-based frames Establishment surveys use only one frame Mixed survey First phase: household survey or listing operation of dwellings and persons First phase: identifies potential informal sector entrepreneurs Informal sector entrepreneurs reside within selected PSUs; their economic units may be outside May target all small/unregistered economic units, or only the informal sector Mixed surveys with dual frames use two sample frames 168