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. 2020 Jul 1;46(Suppl 1):S66-S81.
doi: 10.3138/cpp.2020-076.

Short-Term Effect of COVID-19 on Self-Employed Workers in Canada

Louis-Philippe Beland  1 , Oluwatobi Fakorede  1 , Derek Mikola  1
Affiliations

Short-Term Effect of COVID-19 on Self-Employed Workers in Canada

Louis-Philippe Beland et al. Can Public Policy. .

Abstract
in English, French

Using the Canadian Labour Force Survey, we document the short-term impact of coronavirus disease 2019 (COVID-19) on self-employed individuals in Canada, whom we interpret as small business owners. We document an important decrease in business ownership between February 2020 and May 2020 (-14.8 percent for incorporated and -10.1 percent for unincorporated entities). We find a substantial decrease in ownership and aggregate hours for women, immigrants, and less educated people over the same period. The occupational categories with the largest decrease are in art, culture, and recreation (-14.8 percent); in education, law, and social, community, and government services (-13.6 percent); and in sales and service occupations (-12.8 percent).

À l’aide de l’Enquête sur la population active au Canada, les auteurs documentent les répercussions à court terme de la maladie provoquée par le coronavirus 2019 (COVID 19) sur les travailleurs indépendants au Canada qui, interprètent-ils, regroupent les propriétaires de petites entreprises. Ils relèvent une importante diminution du nombre de propriétaires d’entreprises entre février 2020 et mai 2020 (−14,8 pour cent dans le cas des entités constituées en sociétés et 10,1 pour cent dans celui des entités non constituées en sociétés). Ils observent un fléchissement marqué dans la propriété et le total des heures travaillées chez les femmes, les immigrants et les personnes moins scolarisées au cours de la même période. Les secteurs d’activité présentant la diminution la plus importante sont ceux des arts, de la culture et des loisirs (−14,8 pour cent) ; de l’éducation, du droit et des services sociaux, communautaires et gouvernementaux (−13,6 pour cent) ; et des fonctions de vente et de services (−12,8 pour cent).

Keywords: COVID-19; employment; entrepreneurship; hours worked; labour force; self-employed workers.

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Figures

Figure 1:
Figure 1:
Unemployment Rate, Labour Force Participation, and Hours of Work for Self-Employed Persons: (a) Unemployment Rate, (b) Labour Force Participation, and (c) Hours of Work
Figure 2:
Figure 2:
Unemployment Rate, Labour Force Participation, and Hours of Work for Self-Employed Persons by Incorporation Status: (a) Unemployment Rate, (b) Labour Force Participation, and (c) Hours of Work
Figure 3:
Figure 3:
Unemployment Rate, Labour Force Participation, and Hours of Work for Self-Employed Persons by Those with Paid Help: (a) Unemployment Rate, (b) Labour Force Participation, and (c) Hours of Work
Figure 3:
Figure 3:
Unemployment Rate, Labour Force Participation, and Hours of Work for Self-Employed Persons by Those with Paid Help: (a) Unemployment Rate, (b) Labour Force Participation, and (c) Hours of Work
Figure 4:
Figure 4:
Unemployment Rate, Labour Force Participation, and Hours of Work for Self-Employed Persons by Sex: (a) Unemployment Rate, (b) Labour Force Participation, and (c) Hours of Work
Figure 5:
Figure 5:
Unemployment Rate, Labour Force Participation, and Hours of Work for Self-Employed Persons by Age Group: (a) Unemployment Rate, (b) Labour Force Participation, and (c) Hours of Work
Figure 6:
Figure 6:
Unemployment Rate, Labour Force Participation, and Hours of Work for Self-Employed Persons by Marital Status: (a) Unemployment Rate, (b) Labour Force Participation, and (c) Hours of Work
Figure 6:
Figure 6:
Unemployment Rate, Labour Force Participation, and Hours of Work for Self-Employed Persons by Marital Status: (a) Unemployment Rate, (b) Labour Force Participation, and (c) Hours of Work
Figure 7:
Figure 7:
Unemployment Rate, Labour Force Participation, and Hours of Work for Self-Employed Persons by Education: (a) Unemployment Rate, (b) Labour Force Participation, and (c) Hours of Work
Figure 8:
Figure 8:
Unemployment Rate, Labour Force Participation, and Hours of Work for Self-Employed Persons by Immigration Status: (a) Unemployment Rate, (b) Labour Force Participation, and (c) Hours of Work
Figure 9:
Figure 9:
Unemployment Rate, Labour Force Participation, and Hours of Work for Self-Employed Persons by Years Since Immigration: (a) Unemployment Rate, (b) Labour Force Participation, and (c) Hours of Work
Figure 9:
Figure 9:
Unemployment Rate, Labour Force Participation, and Hours of Work for Self-Employed Persons by Years Since Immigration: (a) Unemployment Rate, (b) Labour Force Participation, and (c) Hours of Work
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References

    1. Bartik, A.W., Bertrand M., Cullen Z.B., Glaeser E.L., Luca M., and Stanton C.T.. 2020. “How Are Small Businesses Adjusting to COVID-19? Early Evidence from a Survey.” NBER Working Paper 26989. Cambridge, MA: National Bureau of Economic Research.
    1. Beland, L.-P., Brodeur A., Haddad J., and Mikola D.. 2020. a. “Covid-19, Family Stress and Domestic Violence: Remote Work, Isolation and Bargaining Power.” IZA Discussion Paper. Bonn, Germany: Institute of Labor Economics.
    1. Beland, L.-P., Brodeur A., Mikola D., and Wright T.. 2020. b. “The Short-Term Economic Consequences of Covid-19: Occupation Tasks and Mental Health in Canada.” IZA Discussion Paper. Bonn, Germany: Institute of Labor Economics. - PMC - PubMed
    1. Beland, L.-P., Brodeur A., and Wright T.. 2020. “Covid-19, Stay-at-Home Orders and Employment: Evidence from CPS Data.” IZA Discussion Paper. Bonn, Germany: Institute of Labor Economics.
    1. Beland, L.-P., and Unel B.. 2019. “Politics and Entrepreneurship in the US.” Canadian Journal of Economics/Revue Canadienne d’économique 52(1):33–57. 10.1111/caje.12365. - DOI

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