Quality of employment data: The quality of the ABI data is equally as important with the ABI being susceptible to misclassification errors, particularly as the level of detail in the ABI becomes more refined. Despite the efforts of the ABI team at the ONS, the onus is on the survey respondents to fill in the survey forms as accurately as possible to ensure a high level of quality in the published ABI data. Potential errors may arise from an incorrect postcode or a misclassification of sector by the survey respondents. Given this study uses 4 digit sectors, the likelihood of some sectoral misclassification is reasonably high. The potential for geographical misclassification, i.e. the problem of an incorrect postcode on the survey return form is less likely to occur at Great Britain level since the local authority level data is aggregated. However, when looking at local authority data, errors and data volatility are more likely to occur.
Small sample sizes in the LFS: The LFS is used to estimate self-employment. The sample sizes used in the LFS are smaller than those in the ABI and as the level of detail becomes more refined (e.g. 4-digit etc), the quality of the data is reduced.
Limited data availability on SIC 2007 basis: At present, the 2007 Standard Industrial Classification is still very much ‘new’ and many data sources have not fully moved across to the new classification. The Blue Book is not due to be published on a SIC 2007 basis until 2011, and the ONS Workforce Jobs series have only just moved across to SIC 2007 in July 2010. In addition, the latest published SIC 2007 employee jobs data is only available for two years, thus making it difficult to establish historical trends.
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