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

2. State of Israel 2 New Short-Term Indicators for the Labor Market Use of Administrative Data for labor statistics: Use of Administrative Data for labor statistics: Administrative Data for Statistical Purposes: Pros and Cons Administrative Data for Statistical Purposes: Pros and Cons Integration of the administrative data and survey data Integration of the administrative data and survey data International Experience International Experience Tax Authority Records in the ICBS Tax Authority Records in the ICBS New statistical indicators produced New statistical indicators produced Integration process Integration process Job-Vacancy Survey: Job-Vacancy Survey: Overview Overview Goals Goals Evaluation Survey Evaluation Survey Problems met Problems met

3. State of Israel 3 Source of rich and relatively cheap data for research. Source of rich and relatively cheap data for research. Administrative files are of census type, covering the whole population. Administrative files are of census type, covering the whole population. Administrative records can substitute (or be complementary) for survey data and hence Administrative records can substitute (or be complementary) for survey data and hence reduce response burden cost on the citizens reduce response burden cost on the citizens relief the bureaus workload created by direct data collection. relief the bureaus workload created by direct data collection. Benefits of using administrative records

4. State of Israel 4 Downside of using administrative records Privacy and human rights issues: creating the ability to trace the activity of each individual in the society 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 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 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 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 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 Do not include answers to subjective and hypothetical questions that may be of interest to the statistical bureau

5. State of Israel 5 Additional Properties Administrative records include all the population. 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 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. 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. On the other hand, online collection reduces this effect.

6. State of Israel 6 Integration of administrative and survey data The two rely on different sources that can be biased The two rely on different sources that can be 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 data - The collecting agency is the sole decision-maker concerning what to collect, how to collect and when. In Administrative records 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 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

7. State of Israel 7 Administrative data serving national statistics: international experience Netherlands: Netherlands: Demographic data on individuals and households from the local authorities. Demographic data on individuals and households from the local authorities. Employment connections from social security and tax authorities. Employment connections from social security and tax authorities. Norway: employer-employment connections from tax and industry records. Norway: employer-employment connections from tax and industry records. France: population and employment register. France: population and employment register. Sweden: linked database of demographic and employment records. Sweden: linked database of demographic and employment records.

8. State of Israel 8 Administrative Records from the TAX AUTHORITY in the ICBS Valuable data source on incomes. Valuable data source on incomes. Can be merged with other sources, like population and business register. 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. The integrated dataset comprises the information on the Labor Market, its supply and demand. Databases for 1999-2005 already received and are being processed. Databases for 1999-2005 already received and are being processed.

9. State of Israel 9 The merged employer-employee database Tax Authority Records EMPLOYER records From Business Register Merged Database Employer-Employee EMPLOYEES records From Population Register

10. State of Israel 10 Main Uses Creation of the database on the tax reported incomes of all the individuals in the country. 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. Construction of the otherwise costly and complicated 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 duration; Employees and Employee Posts by wage and employment 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 sector; Compensations on retirement / firing, by experience, age, sex and sector; Estimation of employers size by number of employees months. Estimation of employers size by number of employees months.

11. Number of months worked during the year Months worked Employees (thousands) % Monthly wage Total 2,609.1 2,609.1100 6,717 6,717 1 126.2 126.24.8 2,498 2,498 2 109.1 109.14.2 2,556 2,556 3 94.7 94.73.6 2,811 2,811 4 90.3 90.33.5 3,164 3,164 5 82.1 82.13.1 3,368 3,368 6 84.6 84.63.2 3,623 3,623 7 82.9 82.93.2 3,751 3,751 8 94.7 94.73.6 4,199 4,199 9 93.7 93.73.6 4,302 4,302 10 112.0 112.04.3 4,483 4,483 11 119.4 119.44.6 4,552 4,552 12 1,519.3 1,519.358.2 8,976 8,976 Number of employee posts during the yearPosts Thousands of persons % Monthly wage 1 1,898.2 1,898.272.8 7,305 7,305 2 474.6 474.618.2 5,484 5,484 3 155.2 155.25.9 4,611 4,611 4 52.9 52.92.0 4,262 4,262 5+ 28.1 28.11.1 4,065 4,065 Both tables are also available separately for Men / Women

12. Employee Posts by seniority, age and sex Seniority at post Total Less than a year 1-2 years 3-5 years 6-10 years More than 10 years NA All 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 Sex Men 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 Women 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 Age Up to19 295.2 295.2 225.2 225.2 48.0 48.0 13.7 13.7 - - 8.3 8.3 24-20 602.2 602.2 377.1 377.1 152.6 152.6 51.6 51.6 2.2 2.2 - 18.7 18.7 34 - 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 - 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 - 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 - 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+ 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

13. Post salary, by seniority, age and sex Seniority at post Total Less than a year 1-2 years 3-5 years 6-10 years More than 10 years NA All 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 Sex Men 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 Women 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 Age Up to19 1,828 1,828 1,754 1,754 2,001 2,001 1,963 1,963 - - 1,287 1,287 24-20 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 - 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 - 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 - 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 - 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+ 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

14. Employed Women and their wages, by number of children Number of Children Total012345+ Employees All 1,270.3661.3222.7203.4114.140.128.7 Marital Status Married749.9225.1174.2178.4106.338.227.8 Divorced116.456.032.619.56.21.50.6 Widowed32.225.33.82.00.80.20.1 Single370.8354.411.83.40.80.2 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

15. Employers, by sector and years in business Years in business All<12-33-45-1010-20+ 20 Total181,53532,103 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 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 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

16. Employees, by sector and years in business of the employer Years in business All<12-33-45-1010-20+ 20 Total2,115.4 126.4 126.4 146.4 146.4 141.5 141.5 430.7 430.7 545.6 545.6 724.7 724.7 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 0.2 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

17. State of Israel 17 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. 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. 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. 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. Logical checks: for example, duration of work against the dates of beginning / end of work.

18. State of Israel 18 Job Vacancy Survey

19. State of Israel 19 Job Vacancy Survey: Overview The Job Vacancy Survey launched following the OECD demands as part of the accession process. 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. 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. Its scope is planned to be the largest out of the business surveys the ICBS produces.

20. State of Israel 20 Development of a Job Vacancy Survey: Goals Estimating the demand for labor (stock / flow) Estimating the demand for labor (stock / flow) Labor supply is estimated by the (already existing) Labor Force Survey Labor supply is estimated by the (already existing) Labor Force Survey Evaluating the demand for labor by Evaluating the demand for labor by Industries Industries Establishment size Establishment size Occupation etc. Occupation etc. Spotting the sub-groups in the labor force mostly influenced by market changes 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. Defining the parameters assisting the labor force (education), thus permitting to design appropriate training programs.

21. State of Israel 21 Survey Specifications Monthly survey. Monthly survey. 6,000 establishments surveyed each quarter. 6,000 establishments surveyed each quarter. 1,000 large establishments (of 250 employees or more) surveyed repeatedly each month, others on the rotation basis. 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. The survey is planned to be launched on January 2009. NOT included: public offices, NOT included: public offices,

22. State of Israel 22 What has been done? Consultation with the future users of the survey: Consultation with the future users of the survey: The Ministry of Industry, Trade and Labor The Ministry of Industry, Trade and Labor Central Bank of Israel Central Bank of Israel Manufacturers Association of Israel Manufacturers Association of Israel Pre-test survey successfully completed. Pre-test survey successfully completed. Now in the process of the evaluation survey. Now in the process of the evaluation survey.

23. State of Israel 23 Evaluation Survey: WHY NEEDED? To define the final population of the survey To 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 setting the specific bound). 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 determine the appropriate data collection methods (post, 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 respondents. To examine the availability of the necessary data among the 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.

24. State of Israel 24 Evaluation 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-sized 400 medium-sized 2 stages 2 stages Locating the establishment (March-April) Locating the establishment (March-April) Whether the establishment exists? Who is the right person to contact? Are the establishment details correct?Whether the establishment exists? Who is the right person to contact? Are the establishment details correct? Data collection (May-June) Data collection (May-June)

25. State of Israel 25 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. 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? 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 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). Public hospitals (health sector). Broadcasting companies (communication sector) etc. Broadcasting companies (communication sector) etc. Teachers: part of them employed through the Ministry of Education, while others – through local authorities. Teachers: part of them employed through the Ministry of Education, while others – through local authorities.