25th Meeting of the Wiesbaden Group on Business Registers. Session 6

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25th Meeting of the Wiesbaden Group on Business Registers Session 6 Punctual monitoring of establishments in the period 2009-2014 and its comparison against results from a study on the demography of establishments November 2016

Series de Introduction tiempo IMAI e ICEE Since 1930,Mexico conducts Economic Censuses every 5 years. INEGI created the Statistical Business Register (SBR) in 2010; it serves as backbone for many economic surveys and institutional projects. One-by-one monitoring of establishments was implemented in 2014 Economic Censuses, recording demographic events on the SBR. INEGI developed a demographic model with data from 16 generations obtained through past Economic Censuses. In order to evaluate the 2014 estimations from the model, one exercise was done to compare them with the results of the demographic events recorded in the SBR. INEGI - Mexico Session 6 Slide 1 2

One-by-one Series monitoring de tiempo of establishments IMAI e ICEE for period 2009-2014 Each establishment in the SBR was assigned with a unique CLEE identifier. This opens up the possibility of tracking each establishment for statistical purposes. SBR data served as starting point for 2014 Economic Census. During 2014 field data collection, to pinpoint demographic events (births, deaths, survivals, and changes in characteristics such as name, address and/or economic activity). The demographic events were recorded in the SBR. INEGI - Mexico Session 6 Slide 2 3

Identification Series of demographic tiempo IMAI events e ICEE during the 2014 Economic Censuses The following demographic events were considered, according to data recorded on the SBR: 1. Survivals: existing establishments from 2009 which were observed again in 2014, in accordance the continuity rules recommended by OECD. 2. Births: establishments which began operations after 2009, or establishments which were born from others according to the continuity rules. 3. Deaths: establishments which existed in 2009 but ceased operations according to data collected in 2014, or establishments who give rise to new ones according to the continuity rules. INEGI - Mexico Session 6 Slide 3 4

Series Continuity de tiempo IMAI rules e ICEE A new establishment is born from an old one if the latter changes in at least two out of three of its following characteristics: - Business name - Address - Economic activity INEGI - Mexico Session 6 Slide 4 5

Count of demographic Series tiempo events IMAI recorded e ICEE on the SBR for period 2009-2014 Demographic Event Count Survivals 2 461,851 Births 2 437,620 Deaths 1 796,420 INEGI - Mexico Session 6 Slide 5 6

Estimating counts of surviving establishments via a survival demographic model In 2014, INEGI undertook a study on life expectancy for Businesses in Mexico, producing tables of survival probabilities. This study used data from Economic Censuses conducted in 1989, 1994, 1999, 2004 and 2009. Survival probabilities were extrapolated to 2014; then, model results were compared against data recorded on the SBR. INEGI - Mexico Session 6 Slide 6 7

Distribution by birth year of the establishments collected in 2009 The survival tables are applied to the 4 291,268 establishments collected by the 2009 Economic Censuses according to their birth year. Birth year Count 2009 343,247 2008 791,103 2007 393,089 2006 294,040 2005 252,528 2004 221,834 2003 141,738 2002 128,956 2001 108,786 2000 183,781 Birth year Count 1999 162,076 1998 94,306 1997 67,129 1996 56,086 1995 83,193 1994 79,136 1993 47,175 1992 51,086 1991 37,550 1990 97,590 Birth year Count 1909 211 1908 125 1907 74 1906 75 1905 95 1904 79 1903 75 1902 76 1901 82 1900 and earlier 88,630 INEGI - Mexico Session 6 Slide 7 8

Estimating counts of surviving establishments via a survival demographic model Resulting estimations from survival model applied to the establishments collected by the 2009 Economic Censuses. Birth year 2009 count of Estimated number of survivors establishments 2010 2011 2012 2013 2014 2009 343,247 219,337 124,373 116,681 109,465 102,695 2008 791,103 448,588 420,845 394,818 370,400 347,492 2007 393,089 368,778 345,971 324,574 304,500 285,668 2006 294,040 275,854 258,794 242,789 227,773 213,687 Total 4 291,268 3 666,034 3 398,272 3 233,780 3 081,378 2 940,850 From the table, it can be seen that from the 4 291,268 establishments from 2009, 2 940,850 would survive and 1 350,418 would die. INEGI - Mexico Session 6 Slide 8 9

Adjustment of estimations from model with the continuity rules results Estimated number of Survivors Number of deaths according to continuity rules Estimated number of survivors after adjustment (S) (DCR) (S DCR) 2 940,850 2 567,114 Estimated number of deaths (D) 373,736 Estimated number of deaths after adjustment (D + DCR) 1 350,418 1 724,154 INEGI - Mexico Session 6 Slide 9 10

Comparing SBR data for period 2009-2014 against estimations given by model Demographic event SBR counts Estimated counts Absolute difference Relative absolute difference (%) Survivors 2 461,851 2 567,114 105,263 4.3% Deaths 1 796,420 1 724,154 72,266 4.0% INEGI - Mexico Session 6 Slide 10 11

Conclusions and future work Survival model produced counts of survivors and deaths relatively close to that recorded in SBR; thus the importance of giving continuity to the SBR project. SBR consolidation will facilitate the development of studies that comprehensively model the different demographic events on establishments, in an ever more accurate way. INEGI - Mexico Session 6 Slide 11 12