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

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  • 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
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    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

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