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CEEDD

Canadian Employer-Employee Dynamics Database

Description

  • Nature: Longitudinal administrative database of employers and employees.
  • Usage: The database can be used to study many issues, including: projects on business start-ups and job creation, with particular emphasis on the role of immigrant entrepreneurs; the distribution of immigrants across business enterprises and how this differs from the distribution of Canadian-born workers; how workforce is affecting businesses, including its effect on labour productivity; local labour market information, including hiring rates, separation rates, layoff rates, and aggregate turnover rates within sub-provincial regions; and the impacts of organizational changes, such as mergers and acquisitions, on individual-level outcomes.
  • Content: CEEDD is a matched employer-employee database which includes both firm-level and individual-level characteristics. It is a link between various tax files including the T1 personal, family and business declaration files, the T2 files (corporate tax return and owner files) and the T4 supplementary and summary files, as well as the longitudinal immigration database (IMDB).
  • Coverage period: 2001 to 2010.

Longitudinal Immigration Database (IMDB) 

  • Part of CEEDD
  • Provides detailed and reliable information on the performance and impact of immigration programs.

Funded Projects

In economic models of trade, it is stated that firms that are more productive will export, while those that are less productive will sell products domestically, or completely exit the market. However, differences in productivity alone cannot explain why some firms export, and some do not. One aspect that may limit a firms international trading opportunities is a lack of information regarding such opportunities, or a lack of assurance that trading agreements will not be honoured. Members of migrant networks may play a role in overcoming such barriers by acting as mediator between the firm and potential trading partner. The objective of this research is to (1) determine the relationship between firms that export and the composition of their employees, and (2) how the Canadian immigration policy has shaped a firm’s ability to export. Specifically, this paper will explore if firms with foreign-born workers are more likely to export, if firms make hiring decisions based on the possibility of exporting, and if there is any evidence to suggest firms hire foreign-born workers to mitigate the information barriers discussed above.

Ananth Ramanarayanan is an Assistant Professor at Western University.

Related Data Sets
CEEDD, TEC

Related Research Themes
Industry and Firm Analysis, International

An extensive amount of literature has stated that immigrants may exhibit poorer economic performance than native-born citizens. There are three main reasons why this relationship may occur: (1) the human capital, such as the education and labour market experiences, may be lower for immigrants, (2) language proficiency tends to be lower among immigrants, and (3) immigrants may have weaker networks or live in areas that consist predominately of one ethnic group, known as enclaves. The purpose of this study is to explore another potential reason why immigrants’ economic performance is lower, specifically, financial literacy. Financial literacy allows agents to make more informed decisions regarding saving, investing, borrowing, etc. Evidence from surveys has documented that there are large variations in financial literacy across demographic characteristics such as gender, education, age, religion, and ethnicity. This project questions whether immigrants in Canada are financially sophisticated in terms of whether or not eligible immigrants take advantage of tax breaks. Higher levels of financial literacy may reflect higher levels of human capital, language proficiency and stronger social networks. Thus, this study will account for, or condition on language, education and networks (measured by the proximity of businesses or individuals with similar demographics).

Related Data Sets
CEEDD

Related Research Themes
Incomes, International

This article takes advantage of new Canadian administrative linked employer-employee data to study the role of employers in explaining changes in inequality along two dimensions. First, we use information about the worker's employer to examine how within-firm and between-firm earning inequality evolved over the past decade. Second, we use firm-level productivity information to shed some light on the evolution of productivity inequality over the last decade. Finally, we interpret these findings in the light of current theories about increasing wage inequality and summarize how these results improve our understanding of the dynamics of productivity dispersion. More precisely, we link the changes in productivity inequality to changes in wage inequality to specifically address the question of how the two are closely connected or not.

Related Data Sets
CEEDD

Related Research Themes
Labour Markets

In this paper, we use linked employer-employe administrative tax data from Canada to estimate the impact of payroll taxes on a variety of firms and workers outcomes. At the firm-level, we use geographic and time variations in tax rates to identify the effect of payroll taxes on wage growth at the worker level. For one province, we exploit a clean overtime change in the payroll tax rate to estimate its impact on the firm's level of employment, average wage and productivity, with difference-in-differences models, taking into account firm-level unobserved heterogeneity. Additionally, taking advantage of the nature of linked data, we estimate wage equations with both fixed worker and firm fixed effects. We find no impact on employment and productivity but significant impacts on wages, implying that payroll taxes are passed almost entirely to workers in the form of lower wages.

Jonathan Deslauriers (HEC Montréal)

Jonathan Paré (HEC Montréal)
 

Related Data Sets
CEEDD

Related Research Themes
Industry and Firm Analysis, Labour Markets

The goal of the Global Income Dynamics Database Project is to provide a rich set of statistics on individual income dynamics for several countries, which are harmonized to make them comparable. The key difference between this project and others (for example, the World Income and Wealth Database of Piketty-Saez-Zucman, et al.) is the focus on dynamics (which requires longitudinal data rather than repeated cross-sections), and administrative data (which allows more sophisticated analyses with reduced measurement issues). This project will enable Canada to be a participant in this database along with 10 other countries (Brazil, Denmark, France, Germany, Italy, Mexico, Norway, Sweden, UK, and US). Canada is uniquely positioned to participate given the newly formed matched worker-firm panel data.

Related Data Sets
CEEDD

Related Research Themes
Incomes

This project sets out to investigate the impact of immigrant business ownership and employment on Canada's international trade. We propose to use Canadian Employer-Employee Dynamics database connected with data on imports and exports for the empirical analysis. We propose to quantify the effects of immigrant owned firms and immigrant employees on the extensive and intensive margins of imports and exports for products with different degrees of differentiation. We also plan to extend the analysis to examine whether the contribution of immigrant business ownership to international trade is affected by the cultural/linguistic distance between the country of origin and Canada.

Huju Liu

Related Data Sets
CEEDD

Related Research Themes
Labour Markets

There appears to be a linkage between productivity and exporting and it is possible that immigration can indirectly influence firm productivity through that channel. There are also ways through which immigration may affect productivity depending upon the immigrant skill mix and how well immigrants match with jobs in the labour market.  This project will pursue two related issues:

1) how immigrants sort into different firms as they assimilate following arrival and how job referral networks play a role in that process; 

2) how firm-specific pay policies potentially affect immigrants and natives differently and thus may contribute to the immigrant-native wage gap.

Related Data Sets
CEEDD

Related Research Themes
Incomes, Industry and Firm Analysis, International, Labour Markets

Recent studies have indicated that the gains to shareholders from mergers and acquisitions (M&A) are a result of layoffs that occur post-merger. After an M&A, the firm undergoes restructuring. In this process, it is likely that some of the workforce at the combined firm may be laid off. While the wealth effects of shareholders are well documented, those of employees are not, especially in the Canadian context. The purpose of this study is to examine the well-being and wealth effect of workers that are employed at merged firms. Specifically, this study hopes to answer the following: (1) what is the effect on the level of employment after an M&A (2) what are the demographics (ex. age, gender, job skill level, family status etc.) of terminated employees and (3) what are the future employment characteristics of such workers (i.e. type, earnings, sector, and location).

Additional data set: Record of Employment (ROE)

Related Data Sets
CEEDD

Related Research Themes
Incomes, Industry and Firm Analysis, Labour Markets

This project investigates to what extent individual learning/experience and employment match quality affect firm creation (new entrepreneurship) and firm survival. Learning and experience is a proxy for the quantity of entrepreneurial human capital, and employment match quality is a proxy for the quality of such human capital. New entrepreneurship as an occupational choice is the outcome of accumulation of the entrepreneurial human capital, meanwhile,  this human capital as an initial condition may also affect the firm exit decision. To this end, we incorporate learning/experience and employment match quality into a dynamic model of occupational choice (i.e., switching between being an employee and being a business owner) using the matched employee-employer data CEEDD. The project also offers insights on the relative importance of financial wealth and entrepreneurial human capital in business formation.

Related Data Sets
CEEDD

Related Research Themes
Industry and Firm Analysis, Labour Markets

This project examines the role that firms play in the economic assimilation of new immigrants to Canada. Because some firms pay more than others (even after conditioning on a worker's skill), two identical individuals working at different firms may be paid differently. The tendency of new immigrants to be employed at low-paying firms, and their propensity to move out of these firms, has important implications for their long-term economic success. This project analyzes the characteristics of firms who tend to employ immigrants, and most importantly, those that hire immigrants directly from abroad. This project speaks to the policy debate on the degree to which employers should be directly involved in immigrant selection in Canada.

Related Data Sets
CEEDD

Related Research Themes
Incomes, Industry and Firm Analysis, Labour Markets

In this project, we will advance the findings of each of these papers by looking in detail at how workers move over their life course, examining in particular how multiple aspects of industrial change impact mobility. The analysis for this proposed research will draw on the Canadian Employer-Employee Dynamics Database (CEEDD), which contains rich data on both individual and firm-level characteristics that may motivate migration for close to two decades.

Nicole Denier (University of Alberta) and Federico Eichelmann-Lombardo (Western University)

Related Data Sets
CEEDD

Related Research Themes
Labour Markets

While there is a large body of literature studying the impact of minimum wages on employment, there is less research into how minimum wages affect firms. Minimum wages increase the cost of paying workers to firms. This gives firms a strong incentive to look for efficiencies, such as increasing performance standards or asking for greater proficiency in job duties. If workers can accomplish more in the same amount of time, they justify their pay increases; if this happens on large enough scale, the result is higher firm productivity. We will study minimum wage increases in Canada from 2001 to 2015 and explore whether these increases resulted in higher firm productivity.

Related Data Sets
CEEDD, NALMF

Related Research Themes
Industry and Firm Analysis, Labour Markets

Starting a business is risky because many businesses fail. Unsuccessful entrepreneurs may lose some of the money they invest, they may lose income by giving up a job in order to start the business, and after their business fails, they may not be able to find as high-paying a job as they had before. How important are these different losses for Canadian entrepreneurs? This project seeks to understand how these different risks discourage people with good ideas from starting businesses. By better understanding these risks, we can create public policy to more effectively encourage people to become entrepreneurs.

Related Data Sets
CEEDD

Related Research Themes
Incomes, Industry and Firm Analysis, Labour Markets

Related Themes

Industry and Firm Analysis

Learn More

Labour Markets

Learn More

Papers and Publications

February, 2019

We examine how immigrant employment enhances trade at the firm level using unique administrative matched employer-employee data from Canada. We augment a standard model of firms’ export market entry and sales decisions with trade costs that depend on destination-specific immigrant employment at the firm level. We estimate simple structural equations derived from the model that relate destination-specific exporting decisions to immigrant employment. We develop a method to deal with the potential endogeneity of immigrant employment that exploits the optimality conditions associated with the firm’s employment decision. We find positive and statistically significant effects of firm level immigrant employment on exporting. These effects vary with product type and immigrant employee characteristics in ways consistent with the idea that immigrant employees alleviate information barriers to trade.

Author(s)

 

Related Data Sets
CEEDD

Related Research Themes
Industry and Firm Analysis, International, Labour Markets

June, 2018

In this paper, we use linked employer-employee administrative tax data from Canada to estimate the impact of payroll taxes on a variety of firms and workers outcomes. At the firm level, we use geographic and time variations in tax rates to identify the effect of payroll taxes on wage growth at the worker level. For one province, we exploit a clean overtime change in the payroll tax rate to estimate its impact on the firm’s level of employment, average wage and productivity, with difference-in-differences models, taking into account firm-level unobserved heterogeneity. Additionally, taking advantage of the nature of linked data, we estimate wage equations with both fixed worker and firm fixed effects. We find no impact on employment, productivity and profits, but significant impacts on wages, implying that payroll taxes are passed almost entirely to workers in the form of lower wages.

Author(s)

Jonathan Deslauriers (HEC Montréal)
Jonathan Paré (HEC Montréal)

Related Data Sets
CEEDD

Related Research Themes
Industry and Firm Analysis

Presented at Statistics Canada: Socio-Economic Workshop - Leading-Edge Business Micro Data and Updates on Access

June, 2017

March, 2017

Related Data Sets
CEEDD, TEC

Related Research Themes
Industry and Firm Analysis, International

Keywords: RDC, CDER

Presented at Data Day

Related Data Sets
ASM, ASM-I, CBSA Customs, CEEDD, CIP, CFA, LEAP, LWF, NALMF, SFSME, SIBS, T2-LEAP, TEC, WES

Related Research Themes
Incomes, Industry and Firm Analysis, International, Labour Markets

Presented at Data Day

Author(s)

Natalie Goodwin, Statistics Canada RDC Analyst, Western University RDC

Related Data Sets
ASM, ASM-I, CBSA Customs, CEEDD, CFA, CIP, LEAP, LWF, NALMF, SFSME, SIBS, T2-LEAP, TEC, WES

Related Research Themes
Incomes, Industry and Firm Analysis, International, Labour Markets

Keywords: RDC

Presented at Data Day

Outline

Accessing business microdata for research purposes at the Canadian Centre for Data Development and Economic Research (CDER) at Statistics Canada

  • CDER basics
  • Data sets available for access to CDER
  • Application process
  • Future directions
  • Other information

Related Data Sets
ASM, ASM-I, CBSA Customs, CEEDD, CFA, CIP, LEAP, LWF, NALMF, SFSME, SIBS, T2-LEAP, TEC, WES

Related Research Themes
Incomes, Industry and Firm Analysis, International, Labour Markets

Keywords: CDER; microdata; data access

Presented at Data Day

May, 2015

Author(s)

Kim P. Huynh works at the Bank of Canada

Related Data Sets
ASM, ASM-I, CBSA Customs, CEEDD, CFA, CIP, LEAP, LWF, NALMF, SFSME, SIBS, T2-LEAP, TEC, WES

Related Research Themes
Incomes, Industry and Firm Analysis, International, Labour Markets

Keywords: CDER; proposal; microdata

JEL Codes: Y9

November, 2012