IDEAS home Printed from https://ideas.repec.org/a/cpp/issued/v46y2020is1ps66-s81.html
   My bibliography  Save this article

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

Author

Listed:
  • Louis-Philippe Beland
  • Oluwatobi Fakorede
  • Derek Mikola

Abstract

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).

Suggested Citation

  • Louis-Philippe Beland & Oluwatobi Fakorede & Derek Mikola, 2020. "Short-Term Effect of COVID-19 on Self-Employed Workers in Canada," Canadian Public Policy, University of Toronto Press, vol. 46(S1), pages 66-81, July.
    • Handle: RePEc:cpp:issued:v:46:y:2020:i:s1:p:s66-s81
    DOI: 10.3138/cpp.2020-076
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.3138/cpp.2020-076
    Download Restriction: access restricted to subscribers
    File URL: https://libkey.io/10.3138/cpp.2020-076?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Louis-Philippe Beland & Abel Brodeur & Derek Mikola & Taylor Wright, 2020. "COVID-19, Occupation Tasks and Mental Health in Canada," Carleton Economic Papers 20-07, Carleton University, Department of Economics, revised 30 Jun 2020.
    2. Ross Finnie & David Gray, 2018. "How Do Older Laid-Off Workers Get By: Reemployment, Early Retirement, or Social Insurance Benefits?," Canadian Public Policy, University of Toronto Press, vol. 44(2), pages 173-189, June.
    3. Louis-Philippe Beland & Bulent Unel, 2019. "Politics and entrepreneurship in the US," Canadian Journal of Economics, Canadian Economics Association, vol. 52(1), pages 33-57, February.
    4. Joao Galindo da Fonseca, 2022. "Unemployment, Entrepreneurship and Firm Outcomes," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 45, pages 322-338, July.
    5. Forsythe, Eliza & Kahn, Lisa B. & Lange, Fabian & Wiczer, David, 2020. "Labor demand in the time of COVID-19: Evidence from vacancy postings and UI claims," Journal of Public Economics, Elsevier, vol. 189(C).
    6. Jennifer Hunt & Marjolaine Gauthier-Loiselle, 2010. "How Much Does Immigration Boost Innovation?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 31-56, April.
    7. Michael Hout & Harvey Rosen, 2000. "Self-Employment, Family Background, and Race," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 670-692.
    8. Louis‐Philippe Beland & Abel Brodeur & Derek Mikola & Taylor Wright, 2022. "The short‐term economic consequences of COVID‐19: Occupation tasks and mental health in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(S1), pages 214-247, February.
    9. Jeff Chan, 2019. "Tariffs and the Composition of Employment: Evidence from the Canada–US Free Trade Agreement," Canadian Public Policy, University of Toronto Press, vol. 45(3), pages 342-365, September.
    10. Fairlie, Robert W., 2020. "The Impact of COVID-19 on Small Business Owners: Evidence of Early-Stage Losses from the April 2020 Current Population Survey," IZA Discussion Papers 13311, Institute of Labor Economics (IZA).
    11. Thomas Lemieux & Kevin Milligan & Tammy Schirle & Mikal Skuterud, 2020. "Initial Impacts of the COVID-19 Pandemic on the Canadian Labour Market," Canadian Public Policy, University of Toronto Press, vol. 46(S1), pages 55-65, July.
    12. Louis-Philippe Beland & Abel Brodeur & Taylor Wright, 2020. "COVID-19, Stay-at-Home Orders and Employment: Evidence from CPS Data," Carleton Economic Papers 20-04, Carleton University, Department of Economics, revised 19 May 2020.
    13. Brodeur, Abel & Clark, Andrew E. & Fleche, Sarah & Powdthavee, Nattavudh, 2021. "COVID-19, lockdowns and well-being: Evidence from Google Trends," Journal of Public Economics, Elsevier, vol. 193(C).
    14. Blanchflower, David G & Oswald, Andrew J, 1998. "What Makes an Entrepreneur?," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 26-60, January.
    15. Herbert J. Schuetze, 2015. "Self-Employment and Retirement in Canada: The Labour Force Dynamics of Older Workers," Canadian Public Policy, University of Toronto Press, vol. 41(1), pages 65-85, March.
    16. Robert W. Fairlie & Harry A. Krashinsky, 2012. "Liquidity Constraints, Household Wealth, And Entrepreneurship Revisited," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(2), pages 279-306, June.
    17. Beland, Louis-Philippe & Brodeur, Abel & Haddad, Joanne & Mikola, Derek, 2020. "Covid-19, Family Stress and Domestic Violence: Remote Work, Isolation and Bargaining Power," GLO Discussion Paper Series 571, Global Labor Organization (GLO).
    18. Ross Levine & Yona Rubinstein, 2017. "Smart and Illicit: Who Becomes an Entrepreneur and Do They Earn More?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(2), pages 963-1018.
    19. Louis-Philippe Béladn & Abel Brodeur & Joanne Haddad & Derek Mikola, 2021. "Determinants of Family Stress and Domestic Violence: Lessons from the COVID-19 Outbreak," Canadian Public Policy, University of Toronto Press, vol. 47(3), pages 439-459, September.
    20. Skriabikova, Olga J. & Dohmen, Thomas & Kriechel, Ben, 2014. "New evidence on the relationship between risk attitudes and self-employment," Labour Economics, Elsevier, vol. 30(C), pages 176-184.
    21. Robert W. Fairlie, 2013. "Entrepreneurship, Economic Conditions, and the Great Recession," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(2), pages 207-231, June.
    22. Felipe Lozano Rojas & Xuan Jiang & Laura Montenovo & Kosali I. Simon & Bruce A. Weinberg & Coady Wing, 2020. "Is the Cure Worse than the Problem Itself? Immediate Labor Market Effects of COVID-19 Case Rates and School Closures in the U.S," NBER Working Papers 27127, National Bureau of Economic Research, Inc.
    23. Alexander W. Bartik & Marianne Bertrand & Zoë B. Cullen & Edward L. Glaeser & Michael Luca & Christopher T. Stanton, 2020. "How Are Small Businesses Adjusting to COVID-19? Early Evidence from a Survey," NBER Working Papers 26989, National Bureau of Economic Research, Inc.
    24. Lewandowski, Piotr, 2020. "Occupational Exposure to Contagion and the Spread of COVID-19 in Europe," IZA Discussion Papers 13227, Institute of Labor Economics (IZA).
    25. Chris Dawson & Andrew Henley & Paul Latreille, 2014. "Individual Motives for Choosing Self-employment in the UK: Does Region Matter?," Regional Studies, Taylor & Francis Journals, vol. 48(5), pages 804-822, May.
    26. Koebel, Kourtney & Pohler, Dionne, 2020. "Labor markets in crisis: The causal impact of Canada's COVD19 economic shutdown on hours worked for workers across the earnings distribution," CLEF Working Paper Series 25, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Block, Joern & Kritikos, Alexander S. & Priem, Maximilian & Stiel, Caroline, 2022. "Emergency-aid for self-employed in the Covid-19 pandemic: A flash in the pan?," Journal of Economic Psychology, Elsevier, vol. 93(C).
    2. Fairlie, Robert, 2020. "The Impact of COVID-19 on Small Business Owners: The First Three Months after Social-Distancing Restrictions," MPRA Paper 113127, University Library of Munich, Germany.
    3. Kourtney Koebel & Dionne Pohler, 2020. "Labor Markets in Crisis: The Double Liability of Low‐Wage Work During COVID‐19," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(4), pages 503-531, October.
    4. Ahn, Kunwon & Lee, Jun Yeong & Winters, John V., 2020. "Employment Opportunities and High School Completion during the COVID-19 Recession," ISU General Staff Papers 202010190700001114, Iowa State University, Department of Economics.
    5. Yahong Zhang, 2022. "Unemployment Benefits and Wage Subsidies -- Effects of Labour Market Policies during a Pandemic," Working Papers 2203, University of Windsor, Department of Economics, revised Sep 2022.
    6. Graeber, Daniel & Kritikos, Alexander S. & Seebauer, Johannes, 2021. "COVID-19: a crisis of the female self-employed," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 34(4), pages 1141-1187.
    7. Pierre Brochu & Jonathan Créchet, 2021. "Survey Non-response in Covid-19 Times: The Case of the Labour Force Survey," Working Papers 2109E, University of Ottawa, Department of Economics.
    8. Charlene Marie Kalenkoski & Sabrina Wulff Pabilonia, 2022. "Impacts of COVID-19 on the self-employed," Small Business Economics, Springer, vol. 58(2), pages 741-768, February.
    9. Iuliana COMAN, 2022. "Solutions for Relaunching Art Consumption After COVID-19 - From the Perspective of Consumers with Higher Education," Database Systems Journal, Academy of Economic Studies - Bucharest, Romania, vol. 13(1), pages 35-46.
    10. Robert Fairlie, 2020. "The impact of COVID‐19 on small business owners: Evidence from the first three months after widespread social‐distancing restrictions," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(4), pages 727-740, October.
    11. Olivier Torrès & Alexandre Benzari & Christian Fisch & Jinia Mukerjee & Abdelaziz Swalhi & Roy Thurik, 2022. "Risk of burnout in French entrepreneurs during the COVID-19 crisis," Small Business Economics, Springer, vol. 58(2), pages 717-739, February.
    12. Pierre Brochu & Jonathan Créchet & Zechuan Deng, 2020. "Labour Market Flows and Worker Trajectories in Canada During COVID-19," Working Papers 2005E, University of Ottawa, Department of Economics.
    13. Louis-Philippe Beland & Abel Brodeur & Taylor Wright, 2020. "COVID-19, Stay-at-Home Orders and Employment: Evidence from CPS Data," Carleton Economic Papers 20-04, Carleton University, Department of Economics, revised 19 May 2020.
    14. Andreas Kuckertz & Leif Brändle, 2022. "Creative reconstruction: a structured literature review of the early empirical research on the COVID-19 crisis and entrepreneurship," Management Review Quarterly, Springer, vol. 72(2), pages 281-307, June.
    15. Louis-Philippe Beland & Abel Brodeur & Derek Mikola & Taylor Wright, 2020. "COVID-19, Occupation Tasks and Mental Health in Canada," Carleton Economic Papers 20-07, Carleton University, Department of Economics, revised 30 Jun 2020.
    16. Luca Bonacini & Giovanni Gallo & Sergio Scicchitano, 2021. "Working from home and income inequality: risks of a ‘new normal’ with COVID-19," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(1), pages 303-360, January.
    17. Robert Amano & Marc-André Gosselin & Kurt See, 2021. "Exploring the potential benefits of inflation overshooting," Staff Analytical Notes 2021-16, Bank of Canada.
    18. Giovanni Gallo & Michele Raitano, 2020. "SOS incomes: Simulated effects of COVID-19 and emergency benefits on individual and household income distribution in Italy," Working Papers 566, ECINEQ, Society for the Study of Economic Inequality.
    19. Thapa, Manish, 2020. "Coping with COVID impact on self-employment: Do gender and academic education matters?," MPRA Paper 105062, University Library of Munich, Germany.
    20. John Baker & Kourtney Koebel & Lindsay Tedds, 2021. "Gender Disparities in the Labour Market? Examining the COVID-19 Pandemic in Alberta," SPP Research Papers, The School of Public Policy, University of Calgary, vol. 14(18), June.
    21. Nicola Raimo & Pedro-José Martínez-Córdoba & Bernardino Benito & Filippo Vitolla, 2021. "The Impact of the COVID-19 Pandemic on the Labor Market: An Analysis of Supply and Demand in the Spanish Municipalities," Sustainability, MDPI, vol. 13(23), pages 1-12, November.
    22. Thapa, Manish, 2020. "Coping with COVID impact on self-employment: Do gender and academic education matters?," MPRA Paper 105050, University Library of Munich, Germany.
    23. Pham Quoc Thuan & Nguyen Vinh Khuong & Nguyen Duong Cam Anh & Nguyen Thi Xuan Hanh & Vo Huynh Anh Thi & Tieu Ngoc Bao Tram & Chu Gia Han, 2022. "The Determinants of the Usage of Accounting Information Systems toward Operational Efficiency in Industrial Revolution 4.0: Evidence from an Emerging Economy," Economies, MDPI, vol. 10(4), pages 1-19, April.
    24. Minyahil Assefa, 2023. "COVID-19 Lockdown Restrictions and Small Business Survival Strategy: Government Supporting Schemes," Business Perspectives and Research, , vol. 11(2), pages 227-245, May.
    25. Mona Farouk Ali, 2022. "Between panic and motivation: did the first wave of COVID-19 affect scientific publishing in Mediterranean countries?," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(6), pages 3083-3115, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Louis‐Philippe Beland & Abel Brodeur & Derek Mikola & Taylor Wright, 2022. "The short‐term economic consequences of COVID‐19: Occupation tasks and mental health in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(S1), pages 214-247, February.
    2. Louis-Philippe Beland & Abel Brodeur & Taylor Wright, 2020. "COVID-19, Stay-at-Home Orders and Employment: Evidence from CPS Data," Carleton Economic Papers 20-04, Carleton University, Department of Economics, revised 19 May 2020.
    3. Louis‐Philippe Beland & Bulent Unel, 2019. "Politics and entrepreneurship in the US," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(1), pages 33-57, February.
    4. Louis-Philippe Beland & Abel Brodeur & Derek Mikola & Taylor Wright, 2020. "COVID-19, Occupation Tasks and Mental Health in Canada," Carleton Economic Papers 20-07, Carleton University, Department of Economics, revised 30 Jun 2020.
    5. Beland, Louis-Philippe & Brodeur, Abel & Haddad, Joanne & Mikola, Derek, 2020. "Covid-19, Family Stress and Domestic Violence: Remote Work, Isolation and Bargaining Power," GLO Discussion Paper Series 571, Global Labor Organization (GLO).
    6. Louis-Philippe Béladn & Abel Brodeur & Joanne Haddad & Derek Mikola, 2021. "Determinants of Family Stress and Domestic Violence: Lessons from the COVID-19 Outbreak," Canadian Public Policy, University of Toronto Press, vol. 47(3), pages 439-459, September.
    7. Guven, Cahit & Sotirakopoulos, Panagiotis & Ulker, Aydogan, 2020. "Short-term Labour Market Effects of COVID-19 and the Associated National Lockdown in Australia: Evidence from Longitudinal Labour Force Survey," GLO Discussion Paper Series 635, Global Labor Organization (GLO).
    8. Lea Immel & Florian Neumeier & Andreas Peichl, 2022. "The Unequal Consequences of the Covid‐19 Pandemic: Evidence from a Large Representative German Population Survey," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(2), pages 471-496, June.
    9. Mathias Huebener & Sevrin Waights & C. Katharina Spiess & Nico A. Siegel & Gert G. Wagner, 2021. "Parental well-being in times of Covid-19 in Germany," Review of Economics of the Household, Springer, vol. 19(1), pages 91-122, March.
    10. Nadia Simoes & Nuno Crespo & Sandrina B. Moreira, 2016. "Individual Determinants Of Self-Employment Entry: What Do We Really Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 783-806, September.
    11. Leonardo Fabio Morales & Leonardo Bonilla‐Mejía & Jose Pulido & Luz A. Flórez & Didier Hermida & Karen L. Pulido‐Mahecha & Francisco Lasso‐Valderrama, 2022. "Effects of the COVID‐19 pandemic on the Colombian labour market: Disentangling the effect of sector‐specific mobility restrictions," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(S1), pages 308-357, February.
    12. Robert Fairlie, 2020. "The impact of COVID‐19 on small business owners: Evidence from the first three months after widespread social‐distancing restrictions," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(4), pages 727-740, October.
    13. Robert W. Fairlie, 2013. "Minority and immigrant entrepreneurs: access to financial capital," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 8, pages 153-175, Edward Elgar Publishing.
    14. Pierre Brochu & Jonathan Créchet, 2021. "Survey Non-response in Covid-19 Times: The Case of the Labour Force Survey," Working Papers 2109E, University of Ottawa, Department of Economics.
    15. Anindo Sarker & Bulent Unel, 2017. "The Impact of Bank Expansion on Self-Employed Business Owners: Evidence from US States," Departmental Working Papers 2017-06, Department of Economics, Louisiana State University.
    16. Ross Levine & Yona Rubinstein, 2018. "Selection into Entrepreneurship and Self-Employment," NBER Working Papers 25350, National Bureau of Economic Research, Inc.
    17. Ghimire Keshar M., 2021. "Supply of immigrant entrepreneurs and native entrepreneurship," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-42, January.
    18. Louis-Philippe Beland & Ozkan Eren & Bulent Unel, 2015. "Politics and Entrepreneurial Activity in the U.S," Departmental Working Papers 2015-04, Department of Economics, Louisiana State University.
    19. Giofré, Maela, 2021. "COVID-19 stringency measures and foreign investment: An early assessment," The North American Journal of Economics and Finance, Elsevier, vol. 58(C).
    20. Onur Altindag & Bilge Erten & Pinar Keskin, 2022. "Mental Health Costs of Lockdowns: Evidence from Age-Specific Curfews in Turkey," American Economic Journal: Applied Economics, American Economic Association, vol. 14(2), pages 320-343, April.

    More about this item

    Keywords

    COVID-19; employment; entrepreneurship; hours worked; labour force; self-employed workers;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpp:issued:v:46:y:2020:i:s1:p:s66-s81. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iver Chong (email available below). General contact details of provider: https://www.utpjournals.press/loi/cpp .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.