IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Trends in Gross Domestic Product and Self-employment of Unincorporated Enterprises in the Canadian Economy, 1987 to 2005

Listed author(s):
  • Rispoli, Luke
Registered author(s):

    This paper investigates the evolution of the unincorporated sector using the number of self-employed and gross domestic product (GDP), in that sector over the period 1987 to 2005. Self-employment studies have analyzed various characteristics of self-employed workers, including age, sex, immigration status and education, but have generally lacked measures of GDP associated with unincorporated self-employment. This study redresses the lack of economic data, and estimates GDP by industry arising from unincorporated self-employment. This paper updates the 1997 - 2002 estimates of unincorporated GDP derived by Rispoli (2009). The paper also examines how unincorporated self-employment responded to both overall economic trends and business cycles. The rate of unincorporated self-employment was positively correlated to the unemployment rate in the long run. The paper also looks at incorporated self-employment. (Close to one million self-employed were incorporated in 2005). It investigates its relationship to the same macroeconomic conditions to determine if incorporated self-employment has a profile similar to unincorporated self-employment. Previous self-employment studies have typically treated self-employment as a homogeneous group. This paper examines the differences between the two groups and finds that they react differently to macroeconomic conditions. Incorporated self-employment grew substantially between 1987 and 1999 (averaging 3.8% per year), and continued to grow between 2000 and 2005 (averaging 4.1% per year). The evidence suggests that a shift in self-employment did not occur from unincorporated enterprises to corporations, but that different forces were at work in the two sectors. Over the long run, the unincorporated self-employment rate is positively correlated to the unemployment rate. In contrast, the incorporated self-employment rate is not related to changes in the unemployment rate, but is positively correlated to overall GDP growth.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    Paper provided by Statistics Canada, Economic Analysis Division in its series Insights on the Canadian Economy with number 2009024e.

    in new window

    Date of creation: 10 Sep 2009
    Handle: RePEc:stc:stcp2e:2009024e
    Contact details of provider: Postal:
    Tunney's Pasture, Ottawa, Ontario, K1A 0T6

    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:stc:stcp2e:2009024e. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Brown)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.