Strengths and weaknesses of administrative data sources: Experiences of the Canadian Business Register

Abstract

In Canada independent administrative data sources are used intensively for the creation and maintenance of the frame for business surveys. The paper argues that administrative data do not usually meet the needs of a statistical agency; typically because these sources utilize concepts, definitions and procedures which are pertinent to carrying out only their own specific mandates. The paper provides insight into the strengths and weaknesses of these administrative data from a “frame” perspective, and, in particular, the guidelines that have been used to offset the weaknesses. The paper concludes that while statistical agencies cannot afford to ignore the contributions that administrative data offer in maintaining a business frame, the ideal administrative source that has no duplicates, sufficient structural detail, and is capable of identifying deaths quickly does not exist. Instead, administrative sources need to be augmented for coverage, transformed for structure, and require creative methodologies for identifying cessations. Additionally, the frame and supporting processes must be designed not only with the survey user requirements in mind, but also with a thorough knowledge of the administrative sources intended to be used so that techniques may be developed to compensate for weaknesses.