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A multidimensional approach A multidimensional approach in the measurement of in the measurement of
underemploymentunderemployment
Giorgina Brown, Federica Pintaldi (ISTAT, Rome)
Time-related underemploymentTime-related underemployment
• core indicator within decent work framework: – employment opportunities – adequate earnings and productive work– decent hours
• within labour force framework, indicator of underutilization of labour resources (similar and complementary to unemployment)
Time-related underemploymentTime-related underemployment
• one of the 20 Key Indicators of the Labour Market (ILO)
• two rates are presented: – number of persons in time-related underemployment
1.as a percentage of the labour force
2.as a percentage of total employment
DefinitionDefinition
• “insufficient hours of work in relation to an alternative employment situation that a person is willing and available to engage in” (16th ICLS, 1998)
• Operationally, it identifies employed persons who in the reference period:– were willing to work additional hours– were available to work additional hours– had worked less than a threshold relating to working
time
Determining persons in time-related underemploymenttime-related underemployment
Employed population22.404
In reference
week willing to
work
less hours1.307
additional hours1.344
same hours19.753
Available to work more?
yes, available
1.050
not available
295
Italian LFS, 2004 (‘000s)
• Includes: – persons not immediately available because of the notice
needed to change job
• Excludes:– persons who have worked less than usual because of illness,
strike, compulsory maternity leave, or study not organized within one’s job
Determining persons in time-related underemploymenttime-related underemployment
Employed population22.404
In reference
week willing to
work
less hours1.307
additional hours1.344
same hours19.753
Available to work more?
yes, available
1.050
not available
295
Italian LFS, 2004 (‘000s)
Defining a thresholdthreshold:: – Legal or empirical– Usual or actual– Statistic used
For defining a thresholdthreshold: mean hours worked
Seasonal factors
Variable used
QuarterYear 20041st 2nd 3rd 4th
actual with absent 38 40 34 38 37
actual without absent 40 41 41 40 41
usual 40 41 41 40 41
mixed all absent 41 42 42 41 42
mixed some reasons 41 41 41 41 41
the median has always the same value: 40 hours
Excludes some employed
Framework
Different dimensions
500
600
700
800
900
1,000
1,100
usual hours actual hours mix1 hours mix2 hours
40 hours
Time-related underemployed by thresholdthreshold and variable (‘000s)
Employed population22.404
In reference
week willing to
work
less hours1.307
additional hours1.344
same hours19.753
Available to work more?
yes, available
1.050
not available
295
Determining persons in time-related underemploymenttime-related underemployment
Actual hours
worked
in additional job53
in different job100
within current job
585
does not specify
253
Work more in what way?
up to threshold
992
above threshold
58
4.4% of employment4.1% of labour force
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100
actual hours full-time employed actual hours underemployed
actual hours part-time employed hours wanted by underemployed
0
25
50
75
100
Distribution of hours workedhours worked in the reference week by employed & underemployed and hours wantedhours wanted by the underemployed
Overlap between involuntary part-timeinvoluntary part-time and time-related underemployed (‘000s)
Time-related underemployed
yes no total
Full-time 541 19.022 19.563
Involuntary part-time 358 656 1.014
Other part-time 93 1.735 1.828
Total 992 21.413 22.404
Only 36% of underemployed are also involuntary part-time
Hours worked is a more stringent and homogenous criterionconsidering the variability of working time in different periods and among occupations
• 38% of underemployed worked less than usual in reference week (vs. 17% of employed) → lack of work in specific periods.
• majority (58%) of underemployed who worked less than usual would like to work as usual, 15% state usual hours are very variable.
• But for majority of underemployed (59%), hours worked in reference week are as usual.
Always or sometimes underemployed?Always or sometimes underemployed?
1,7
1,3
3,5
1,8
3,7
1,5
1,8
2,7
3,1
2,5
1,9
2,0
3,5
2,2
Italy
services
constructions
industry
agriculture
women
men
Less than usual As usual
Always or sometimes underemployed?Always or sometimes underemployed?
Other forms ofOther forms of underemploymentunderemployment • “inadequate employment situations that affect
the capacities and well-being of workers” (16th ICLS, 1998)
• Employed persons who during the reference period wanted to change their work situation for set of reasons chosen according to national circumstances, e.g.– inadequate use and mismatch of occupational skills– inadequate income– excessive hours
»more difficult to measure »no operational definition
Skill-relatedSkill-related underemploymentunderemployment
• Our proposal of operational definition coherent with time-related underemployment:– Looking for a new job (willing)– Available to start new job (available)– Mismatch of occupation and skills (threshold)
• Level of education as proxy for skills → indications of ISCO 88:– persons with university-level degree in groups 3 to 9
(Technicians to Elementary occupations)– persons with upper secondary school diploma in
groups 4 to 9 (Clerks to Elementary occupations).
Employed population22.404
yes, a second job
216
no
20.771
yes, a new job
1.417
not available
112
yes, available
1.305
yes517
no 788
to earn more131 281
more qualifying job153 104
other reason233 433
Looking for a job?
Available to start new
job?
Mismatch of education
and occupation?
Reason for look ing for a new job
Determining persons in skill-related underemploymentskill-related underemployment
1,417
1,305
902
669621
517
284
200
400
600
800
1,000
1,200
1,400
1,600
looking for job +available +available,mismatch or
reasons (skills,earnings)
+available,reasons
+available,mismatch or
reason (skills)
+available,mismatch
+available,mismatch and
reasons
What would change if we were to use an alternative definitionalternative definition?
Mismatch only = 6,495 ‘000s
Skill-relatedSkill-related underemploymentunderemployment
• Of the 517 thousand in skill-related underemployment (2.3%):
– 413 have upper secondary school diploma(4.2% of those in employment with a diploma)
– 104 a university-level degree (2.3%).
CombinationCombination of time-related and skill-related underemployment (‘000s)
472 112 880
time-related underemployment
skill-related underemployment
Small overlap: different profiles
Proportion of underemployed by sex and ageby sex and age
0
2
4
6
8
10
12
14
all e
mploy
edm
en
women
15-3
4
35-4
4
45-6
4
65 &
ove
r
time-related both skill-related
Proportion of underemployed by type of worktype of work
0
2
4
6
8
10
12
14
16
18
20
allemployed
permanentjob
temporaryjob
self-employed
full-time part-time
time-related both skill-related
Proportion of underemployed by occupation groupoccupation group
0 2 4 6 8 10 12 14
senior off icials and managers
professionals
technicians
clerks
service and sales w orkers
agricultural, craft and related w orkers
plant/machine operators and assemblers
elementary occupations
time-related both skill-related
Other dimensions?Other dimensions?
• Income-related underemployment in part associated with time and skill. But low income possible even working many hours or for highly qualified occupations.
• To be coherent, we need variable on earned income to establish threshold of adequate income above which one cannot be classified as income-related underemployed– Measurement problems: interviewees often reticent
• To avoid overlap income-related/time-related dimensions, we could consider hourly income.
• We could distinguish those who would like to work more hours but only if paid more than their normal hourly rate, from those who want to work more even at same rate.