State of Israel 1 Latest developments in the evolution of short-term indicators in the ICBS Yoel Finkel Central Bureau of Statistics, Israel.

11

State of Israel

Latest developments in the Latest developments in the evolution of short-term indicators evolution of short-term indicators

in the ICBS in the ICBS

Yoel FinkelYoel Finkel

Central Bureau of Statistics, IsraelCentral Bureau of Statistics, Israel

22State of Israel

New Short-Term Indicators for theNew Short-Term Indicators for theLabor MarketLabor Market

Use of Administrative Data for labor statistics:Use of Administrative Data for labor statistics: Administrative Data for Statistical Purposes: Pros and ConsAdministrative Data for Statistical Purposes: Pros and Cons Integration of the administrative data and survey dataIntegration of the administrative data and survey data International ExperienceInternational Experience Tax Authority Records in the ICBSTax Authority Records in the ICBS New statistical indicators producedNew statistical indicators produced Integration processIntegration process

Job-Vacancy Survey:Job-Vacancy Survey: OverviewOverview GoalsGoals Evaluation SurveyEvaluation Survey Problems metProblems met

33State of Israel

Source of rich and relatively Source of rich and relatively cheapcheap data for data for research. research.

Administrative files are of census type, Administrative files are of census type, covering the whole population.covering the whole population.

Administrative records can substitute (or be Administrative records can substitute (or be complementary) for survey data and hencecomplementary) for survey data and hence reduce response burden cost on the citizensreduce response burden cost on the citizens relief the bureaus’ workload created by direct relief the bureaus’ workload created by direct

data collection.data collection.

Benefits of using administrative Benefits of using administrative recordsrecords

44State of Israel

Downside of using administrative Downside of using administrative recordsrecords

Privacy and human rights issues: creating the ability to trace the activity of each Privacy and human rights issues: creating the ability to trace the activity of each individual in the society individual in the society

The mere existence of a cheap data source may tempt statistical bureaus to The mere existence of a cheap data source may tempt statistical bureaus to collect data that are not really needed collect data that are not really needed

Administrative records tend to be biased according to the priorities and policies of Administrative records tend to be biased according to the priorities and policies of the agency in chargethe agency in charge

Changes of definitions and content can occur without prior notice and without 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 having a grace period in which the new and the old definitions are reported simultaneously simultaneously

Administrative records include only variables of interest that the collecting agency Administrative records include only variables of interest that the collecting agency needsneeds

Do not include answers to subjective and hypothetical questions that may be of Do not include answers to subjective and hypothetical questions that may be of interest to the statistical bureau interest to the statistical bureau

55State of Israel

Additional PropertiesAdditional Properties

Administrative records include all the Administrative records include all the population.population. On the other hand, it may increase the risk of On the other hand, it may increase the risk of

illegal access to the information on a specific illegal access to the information on a specific person by unauthorized workers / hackersperson by unauthorized workers / hackers

Administrative records are available only Administrative records are available only after the collecting process is completed – after the collecting process is completed – a delay of a year or two. a delay of a year or two. On the other hand, online collection reduces On the other hand, online collection reduces

this effect. this effect.

66State of Israel

Integration of administrative and Integration of administrative and survey data survey data

The two rely on different sources that can be The two rely on different sources that can be biased biased

Difference in definitions Difference in definitions Different time structure and time coverage Different time structure and time coverage Different types of errors Different types of errors

In Survey dataIn Survey data - The collecting agency is the sole - The collecting agency is the sole decision-maker concerning what to collect, how to decision-maker concerning what to collect, how to collect and when. collect and when. In Administrative recordsIn Administrative records

Collection of the data can be abruptly stopped Collection of the data can be abruptly stopped Changes are not always reported in advance Changes are not always reported in advance No period in which two datasets are collected simultaneously No period in which two datasets are collected simultaneously

77State of Israel

Administrative data serving national statistics: Administrative data serving national statistics: international experienceinternational experience

Netherlands: Netherlands: Demographic data on individuals and households Demographic data on individuals and households

from the local authorities.from the local authorities. Employment connections from social security and tax Employment connections from social security and tax

authorities.authorities.

Norway: employer-employment connections Norway: employer-employment connections from tax and industry records.from tax and industry records.

France: population and employment register.France: population and employment register. Sweden: linked database of demographic and Sweden: linked database of demographic and

employment records.employment records.

88State of Israel

Administrative Records from theAdministrative Records from theTAX AUTHORITY in the ICBSTAX AUTHORITY in the ICBS

Valuable data source on incomes.Valuable data source on incomes. Can be merged with other sources, like Can be merged with other sources, like

population and business register.population and business register. The integrated dataset comprises the The integrated dataset comprises the

information on the Labor Market, its supply information on the Labor Market, its supply and demand.and demand.

Databases for 1999-2005 already received Databases for 1999-2005 already received and are being processed. and are being processed.

99State of Israel

The merged employer-employee The merged employer-employee databasedatabase

Tax Authority Records

EMPLOYER recordsFrom

Business Register

Merged DatabaseEmployer-Employee

EMPLOYEES recordsFrom

Population Register

1010State of Israel

Main UsesMain Uses Creation of the database on the tax reported incomes of Creation of the database on the tax reported incomes of

all the individuals in the country.all the individuals in the country. Construction of the otherwise costly and complicated Construction of the otherwise costly and complicated

panel, supplying data on social and employment mobility.panel, supplying data on social and employment mobility. Priceless addition to wage and employment statistics:Priceless addition to wage and employment statistics:

Employees and Employee Posts by sex, age, marital status;Employees and Employee Posts by sex, age, marital status; Employees and Employee Posts by wage and employment Employees and Employee Posts by wage and employment

duration;duration; Women employed, by number of children;Women employed, by number of children; Wages, by experience, or demographic parameters;Wages, by experience, or demographic parameters; Compensations on retirement / firing, by experience, age, sex and Compensations on retirement / firing, by experience, age, sex and

sector;sector; Estimation of employer’s size by number of employees months.Estimation of employer’s size by number of employees months.

Number of months worked during the year

Months Months workedworked

Employees Employees (thousands)(thousands)

%% Monthly Monthly wagewage

TotalTotal 2,609.1 2,609.1 100100 6,717 6,717

11 126.2 126.2 4.84.8 2,498 2,498

22 109.1 109.1 4.24.2 2,556 2,556

33 94.7 94.7 3.63.6 2,811 2,811

44 90.3 90.3 3.53.5 3,164 3,164

55 82.1 82.1 3.13.1 3,368 3,368

66 84.6 84.6 3.23.2 3,623 3,623

77 82.9 82.9 3.23.2 3,751 3,751

88 94.7 94.7 3.63.6 4,199 4,199

99 93.7 93.7 3.63.6 4,302 4,302

1010 112.0 112.0 4.34.3 4,483 4,483

1111 119.4 119.4 4.64.6 4,552 4,552

1212 1,519.3 1,519.3 58.258.2 8,976 8,976

Number of employee posts during the year

PostsPosts ThousandThousands of s of personspersons

%% Monthly Monthly wagewage

11 1,898.21,898.2 72.872.8 7,305 7,305

22 474.6 474.6 18.218.2 5,484 5,484

33 155.2 155.2 5.95.9 4,611 4,611

44 52.9 52.9 2.02.0 4,262 4,262

5+5+ 28.1 28.1 1.11.1 4,065 4,065

Both tables are also available separately for Men / Women

Employee Posts by seniority, age and sexEmployee Posts by seniority, age and sex

Seniority at postSeniority at post

TotalTotal

Less Less than a than a yearyear

1-2 1-2 yearsyears

3-5 3-5 yearsyears

6-10 6-10 yearsyears

More More than 10 than 10 yearsyears

NANA

AllAll 3,687.7 3,687.7 1,421.2 1,421.2 816.9 816.9 566.8 566.8 321.7 321.7 376.3 376.3 184.8 184.8

SexSex

MenMen 1,879.6 1,879.6 768.3 768.3 422.2 422.2 275.8 275.8 157.7 157.7 181.7 181.7 73.8 73.8

WomenWomen 1,808.1 1,808.1 652.8 652.8 394.6 394.6 291.0 291.0 164.1 164.1 194.6 194.6 111.0 111.0

AgeAge

Up toUp to1919 295.2 295.2 225.2 225.2 48.0 48.0 13.7 13.7 - - - - 8.3 8.3

24-2024-20 602.2 602.2 377.1 377.1 152.6 152.6 51.6 51.6 2.2 2.2 - - 18.7 18.7

34 - 2534 - 25 1,103.6 1,103.6 431.9 431.9 304.5 304.5 215.2 215.2 89.5 89.5 15.6 15.6 47.0 47.0

44 - 3544 - 35 696.2 696.2 186.4 186.4 144.8 144.8 126.3 126.3 96.6 96.6 103.3 103.3 38.8 38.8

54 - 4554 - 45 599.3 599.3 127.6 127.6 102.6 102.6 95.7 95.7 79.4 79.4 151.6 151.6 42.4 42.4

64 - 5564 - 55 303.1 303.1 54.7 54.7 47.2 47.2 46.3 46.3 40.6 40.6 88.6 88.6 25.8 25.8

65+65+ 88.2 88.2 18.4 18.4 17.2 17.2 18.0 18.0 13.4 13.4 16.9 16.9 4.4 4.4

Post salary, by seniority, age and sexPost salary, by seniority, age and sex

Seniority at postSeniority at post

TotalTotal

Less Less than a than a yearyear

1-2 1-2 yearsyears

3-5 3-5 yearsyears

6-10 6-10 yearsyears

More More than 10 than 10 yearsyears

NANA

AllAll 7,076 7,076 3,627 3,627 5,260 5,260 7,171 7,171 8,785 8,785 11,963 11,963 9,144 9,144

SexSex

MenMen 8,813 8,813 4,308 4,308 6,492 6,492 9,248 9,248 11,272 11,272 15,230 15,230 12,610 12,610

WomenWomen 5,291 5,291 2,806 2,806 3,921 3,921 5,124 5,124 6,335 6,335 8,889 8,889 6,534 6,534

AgeAge

Up toUp to1919 1,828 1,828 1,754 1,754 2,001 2,001 1,963 1,963 - - - - 1,287 1,287

24-2024-20 3,053 3,053 2,657 2,657 3,360 3,360 3,577 3,577 4,312 4,312 - - 2,578 2,578

34 - 2534 - 25 5,971 5,971 4,060 4,060 5,413 5,413 7,180 7,180 8,050 8,050 8,049 8,049 5,831 5,831

44 - 3544 - 35 8,244 8,244 4,832 4,832 6,592 6,592 8,415 8,415 9,748 9,748 10,716 10,716 8,613 8,613

54 - 4554 - 45 9,308 9,308 4,682 4,682 6,356 6,356 7,882 7,882 9,273 9,273 12,629 12,629 11,378 11,378

64 - 5564 - 55 9,571 9,571 4,130 4,130 5,566 5,566 6,783 6,783 8,344 8,344 13,379 13,379 13,397 13,397

65+65+ 5,579 5,579 3,113 3,113 3,654 3,654 3,945 3,945 5,447 5,447 9,570 9,570 8,642 8,642

Employed Women and their wages, by number of childrenEmployed Women and their wages, by number of children

Number of ChildrenNumber of Children

TotalTotal 00 11 22 33 44 5+5+

Employees

All 1,270.3 661.3 222.7 203.4 114.1 40.1 28.7

Marital Status

Married 749.9 225.1 174.2 178.4 106.3 38.2 27.8

Divorced 116.4 56.0 32.6 19.5 6.2 1.5 0.6

Widowed 32.2 25.3 3.8 2.0 0.8 0.2 0.1

Single 370.8 354.4 11.8 3.4 0.8 0.2 0.2

Monthly Wage

All 5,135 4,499 5,811 6,070 6,020 5,126 4,423

Marital Status

Married 5,907 5,897 5,923 6,157 6,113 5,197 4,479

Divorced 5,475 5,674 5,419 5,464 4,714 3,692 2,631

Widowed 4,679 4,514 5,451 5,283 4,981 4,425 3,332

Single 3,511 3,425 5,416 5,568 4,904 3,295 2,743

Employers, by sector and years in businessEmployers, by sector and years in businessYears in businessYears in business

All <1 2-3 3-4 5-10 10-20 + 20

Total 181,535181,535 32,10332,103 26,819 26,819 19,816 19,816 33,850 33,850 43,430 43,430 20,913 20,913

Sector

Agriculture 7,751 7,751 714 714 831 831 625 625 1,261 1,261 2,885 2,885 1,435 1,435

Manufacturing 15,066 15,066 1,910 1,910 1,450 1,450 1,305 1,305 2,700 2,700 4,499 4,499 3,202 3,202

Electricity and water 98 98 7 7 7 7 6 6 18 18 20 20 40 40

Construction 20,338 20,338 3,534 3,534 2,758 2,758 2,238 2,238 4,520 4,520 5,255 5,255 2,033 2,033

Trade 43,438 43,438 8,504 8,504 6,100 6,100 4,800 4,800 8,256 8,256 11,023 11,023 4,755 4,755

Accommodation and restaurant services

9,479 9,479 3,245 3,245 1,602 1,602 1,107 1,107 1,470 1,470 1,463 1,463 592 592

Transport &Communication

11,115 11,115 1,920 1,920 1,744 1,744 1,444 1,444 2,334 2,334 2,684 2,684 989 989

Bank./Insurance/ Finance 5,868 5,868 882 882 959 959 698 698 1,058 1,058 1,449 1,449 822 822

Business Activities 37,372 37,372 7,216 7,216 6,919 6,919 4,715 4,715 7,066 7,066 7,873 7,873 3,583 3,583

Public Administration 578 578 18 18 25 25 25 25 78 78 100 100 332 332

Education 4,922 4,922 702 702 724 724 520 520 1,006 1,006 1,190 1,190 780 780

Health and Welfare 9,766 9,766 1,544 1,544 1,878 1,878 990 990 1,962 1,962 2,390 2,390 1,002 1,002

Community/pers. Service 11,140 11,140 1,907 1,907 1,822 1,822 1,343 1,343 2,121 2,121 2,599 2,599 1,348 1,348

Employees, by sector and years in business of the Employees, by sector and years in business of the employeremployer

Years in businessYears in business

All <1 2-3 3-4 5-10 10-20 + 20

Total 2,115.4 2,115.4 126.4 126.4 146.4 146.4 141.5 141.5 430.7 430.7 545.6 545.6 724.7 724.7

Sector

Agriculture 44.0 44.0 2.5 2.5 3.1 3.1 2.1 2.1 4.8 4.8 8.1 8.1 23.4 23.4

Manufacturing 304.9 304.9 10.9 10.9 13.8 13.8 18.0 18.0 42.6 42.6 92.7 92.7 126.9 126.9

Electricity and water 16.6 16.6 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.2 0.1 0.1 16.2 16.2

Construction 105.6 105.6 12.3 12.3 12.0 12.0 11.0 11.0 22.0 22.0 30.8 30.8 17.6 17.6

Trade 296.7 296.7 29.3 29.3 29.6 29.6 27.7 27.7 58.7 58.7 94.8 94.8 56.7 56.7

Accommodation and restaurant services

102.2 102.2 19.5 19.5 15.6 15.6 12.3 12.3 21.8 21.8 21.3 21.3 11.7 11.7

Transport &Communication 120.2 120.2 6.9 6.9 7.2 7.2 9.2 9.2 18.3 18.3 43.4 43.4 35.2 35.2

Banking/Insurance/ Finance 63.4 63.4 2.3 2.3 3.3 3.3 5.0 5.0 7.4 7.4 7.1 7.1 38.4 38.4

Business Activities 379.7 379.7 25.7 25.7 33.6 33.6 33.5 33.5 71.3 71.3 118.5 118.5 97.1 97.1

Public Administration 133.6 133.6 0.1 0.1 1.9 1.9 0.1 0.1 26.6 26.6 7.7 7.7 97.1 97.1

Education 268.7 268.7 3.1 3.1 8.5 8.5 7.4 7.4 115.9 115.9 34.2 34.2 99.5 99.5

Health and Welfare 174.7 174.7 6.1 6.1 8.4 8.4 7.4 7.4 23.0 23.0 63.1 63.1 66.7 66.7

Community/pers. Service 104.6 104.6 7.8 7.8 9.3 9.3 7.8 7.8 18.1 18.1 23.6 23.6 38.0 38.0

1717State of Israel

What has been done to match the What has been done to match the statistical needs of the ICBS?statistical needs of the ICBS?

Number of records checked: to assure the file is Number of records checked: to assure the file is complete and refers to the period defined.complete and refers to the period defined.

Field properties defined in order to analyze the Field properties defined in order to analyze the goodness of the data: extreme or not permitted goodness of the data: extreme or not permitted values located.values located.

The database was linked to the population The database was linked to the population register to fill additional demographic data.register to fill additional demographic data.

Logical checks: for example, duration of work Logical checks: for example, duration of work against the dates of beginning / end of work.against the dates of beginning / end of work.

1818

State of Israel

Job Vacancy SurveyJob Vacancy Survey

1919State of Israel

Job Vacancy Survey: OverviewJob Vacancy Survey: Overview

The Job Vacancy Survey launched The Job Vacancy Survey launched following the OECD demands as part of following the OECD demands as part of the accession process. the accession process.

It is designed to evaluate the demand part It is designed to evaluate the demand part of the labor market – the number and of the labor market – the number and nature of the job vacancies.nature of the job vacancies.

Its scope is planned to be the largest out Its scope is planned to be the largest out of the business surveys the ICBS of the business surveys the ICBS produces. produces.

2020State of Israel

Development of a Job Vacancy Survey: Development of a Job Vacancy Survey: GoalsGoals

Estimating the Estimating the demand for labordemand for labor (stock / flow) (stock / flow) Labor supplyLabor supply is estimated by the (already existing) is estimated by the (already existing)

Labor Force SurveyLabor Force Survey Evaluating the demand for labor byEvaluating the demand for labor by

IndustriesIndustries Establishment size Establishment size Occupation etc.Occupation etc.

Spotting the sub-groups in the labor force mostly Spotting the sub-groups in the labor force mostly influenced by market changesinfluenced by market changes

Defining the parameters assisting the labor force Defining the parameters assisting the labor force (education), thus permitting to design (education), thus permitting to design appropriate training programs.appropriate training programs.

2121State of Israel

Survey SpecificationsSurvey Specifications

Monthly survey.Monthly survey. 6,000 establishments surveyed each 6,000 establishments surveyed each

quarter.quarter. 1,000 large establishments (of 250 1,000 large establishments (of 250

employees or more) surveyed repeatedly employees or more) surveyed repeatedly each month, others on the rotation basis.each month, others on the rotation basis.

The survey is planned to be launched on The survey is planned to be launched on January 2009.January 2009.

NOT included: public offices, NOT included: public offices,

2222State of Israel

What has been done?What has been done?

Consultation with the future users of the Consultation with the future users of the survey:survey: The Ministry of Industry, Trade and LaborThe Ministry of Industry, Trade and Labor Central Bank of IsraelCentral Bank of Israel Manufacturers Association of IsraelManufacturers Association of Israel

Pre-test survey successfully completed.Pre-test survey successfully completed. Now in the process of the evaluation Now in the process of the evaluation

survey.survey.

2323State of Israel

Evaluation Survey: Evaluation Survey: WHY NEEDED?WHY NEEDED?

To define the final population of the surveyTo define the final population of the survey By sectors (esp. construction and agriculture)By sectors (esp. construction and agriculture) Establishment size bound (what is the magnitude of the bias from Establishment size bound (what is the magnitude of the bias from

setting the specific bound) .setting the specific bound) .

To determine the appropriate data collection methods (post, To determine the appropriate data collection methods (post, telephone, field) and the establishments reaction time.telephone, field) and the establishments reaction time.

To evaluate the questionnaire suitability.To evaluate the questionnaire suitability. To examine the availability of the necessary data among the To examine the availability of the necessary data among the

respondents.respondents. To access the problem of locating the establishments.To access the problem of locating the establishments. To estimate the time input by the surveyor.To estimate the time input by the surveyor.

2424State of Israel

Evaluation SurveyEvaluation Survey

1100 establishments surveyed for 2 months:1100 establishments surveyed for 2 months: 400 small businesses (up to 5 employees)400 small businesses (up to 5 employees) 300 large (of 250 employees and more)300 large (of 250 employees and more) 400 medium-sized400 medium-sized

2 stages2 stages Locating the establishment (March-April)Locating the establishment (March-April)

• Whether the establishment exists? Who is the right Whether the establishment exists? Who is the right person to contact? Are the establishment details person to contact? Are the establishment details correct?correct?

Data collection (May-June)Data collection (May-June)

2525State of Israel

Main Methodological ProblemsMain Methodological Problems ““Kibbutz”:Kibbutz”: – problematic issue because they appear – problematic issue because they appear

more than once in the business register: once as a joint more than once in the business register: once as a joint cooperative, and as several separate establishments. cooperative, and as several separate establishments. Thus, they could be sampled more than once, without us Thus, they could be sampled more than once, without us being able to identify they are the same entity.being able to identify they are the same entity.

Conglomerates / joint firms:Conglomerates / joint firms: – how to deal with them? – how to deal with them? Public organizationsPublic organizations: whether they belong to the : whether they belong to the

government sector or a specific industry? Whether to government sector or a specific industry? Whether to survey them separately – or through the Civil Service survey them separately – or through the Civil Service Authority which concentrates their activity?Authority which concentrates their activity?

Public hospitals (health sector).Public hospitals (health sector). Broadcasting companies (communication sector) etc.Broadcasting companies (communication sector) etc.

TeachersTeachers: part of them employed through the Ministry of : part of them employed through the Ministry of Education, while others – through local authorities. Education, while others – through local authorities.