1. Updating the Business-Frame in Japan using administrative data and mail survey Seiji TAKATA Statistics Bureau of Japan (SBJ) 1

2. 1. Business-Frame in Japan in the past  Source : Establishment and Enterprise Census (EEC) 2 - conducted at 2 or 3 year interval detailed census at 5 year interval simplified census 3 years after the detailed census - enumerator canvassing method - 6 million establishments (2006) 1.7 million corporations

3.  Coverage of EEC Enumerator-Canvassing Method may miss enterprises with no signboards cf. Number of corporations 1.7 million (EEC) 2.8 million (Commercial/Corporate Register) 3 Why the difference? - inactive establishments - dummy corporations (without physical location) - enumerators may miss the establishments

4.  Timeliness of EEC EEC is conducted at 2 or 3 year interval  birth/death is not reflected to BR until the next census is conducted. 4 some surveys suffer from “gap” of samples monthly labour survey, etc. (seemingly) low birth-rate of establishments around 4% per year

5. Recently, Statistics Bureau of Japan (SBJ) made efforts to overcome these problems. 5  Utilization of Commercial/Corporate Register  Supplementary Mail Survey

6. 2. Utilization of Commercial/Corporate Register  Economic Census started in July, 2009. (replacing EEC) 6 To improve the coverage of Economic Census, we use Commercial/Corporate Register(CCR) to make the preparatory list of establishments. In fact, there has been long discussion for the statistical use of CCR data. (between the Statistics Bureau and the Ministry of Justice) Statistics Bureau bears the cost of converting CCR data for statistical use.

7. Commercial/Corporate Register(CCR)  Every corporation is legally required to register to CCR. - 2.8 million corporations included - items: name of the corporation address of the head-office business activity (in words, multiple) (no accounting items are included) 7

8. CCR data ( 2.8 million )  In many case, name/address of EEC data and CCR data differ from each other due to errors or mistakes, there happens numerous unidentified data. EEC data ( 1.7 million head offices) Unidentified 0.4 million Identified 1.3 million Unidentified 1.5 million Nominal head office differs from the real one. Inactive establishments Dummy company Enumerators failed to find 8

9. Preparatory List of Establishments for the Economic Census Source: results of 2006 EEC CCR Firstly, match EEC and CCR by name and address. Mail Survey for unmatched data. Eventually, 2009 Economic Census will resolve the gap between EEC and CCR. 9

10. Utilization of CCR for updating BR  Monthly CCR data available. around 10,000 new corporations per month 10 Timely Updating of BR possible (for corporations)

11. 3. Supplementary Mail Survey  CCR data contains : name of the corporation address of the head office 11 not contain : phone number industrial classification number of persons engaged number of branch offices operating status(active/inactive)

12.  SBJ plans to conduct 12 Mail survey for new corporations in CCR - Phone number - Main business activity - Number of persons engaged - Number of branch offices investigator-visiting for non-correspondents in major cities (Tokyo, Osaka, etc.) These information are reflected in BR

13. 4. Utilization of Labour Insurance Data  CCR covers all corporations in Japan. 13 How about unincorporated entities? Any (administrative) data for them? Labour insurance, compulsory social security system by MHLW (Ministry of Health Labour and Welfare), covers all establishments with one or more employees. (of corporations and unincorporated entities) SBJ now talks to MHLW to utilize labour insurance data to update BR.

14. 5. Future Tasks  Unincorporated entities with no employees - not covered by CCR nor Labor insurance - may be economically unimportant  (Probably Low) response rate for supplementary mail survey 14

15.  Another useful (administrative) data? 15 Tax Data! At present, SBJ cannot use tax data. There has been long debate about the statistical use of tax data, but no (positive) conclusion has been settled yet. Gaining public support will be essential.

16. Thank You! 16