Work Package 11 Work Package 11

Using ESEC based on ECHP to examine Using ESEC based on ECHP to examine class differences in Persistent Poverty, class differences in Persistent Poverty, Deprivation and Economic VulnerabilityDeprivation and Economic Vulnerability

OutlineOutline

ESEC Classes and Information neededESEC Classes and Information needed Items available in ECHP UDBItems available in ECHP UDB Assessment of ECHP UDB adequacyAssessment of ECHP UDB adequacy Other issues to be consideredOther issues to be considered Persistent Income Poverty and Persistent Income Poverty and

Deprivation and EconomicVulnerabilityDeprivation and EconomicVulnerability

ESEC classes (Feasibility Report, 2001)ESEC classes (Feasibility Report, 2001)

1.1. Large employers, higher managers / professionals Large employers, higher managers / professionals

2.2. Lower managers / professionalsLower managers / professionals

3. Intermediate (clerks, technical, sales, service)3. Intermediate (clerks, technical, sales, service)

4. Small employers, own account workers4. Small employers, own account workers

5. Employers & self-employed -agriculture5. Employers & self-employed -agriculture

6. Lower supervisory, technical6. Lower supervisory, technical

7. Semi-routine7. Semi-routine

8. Basic occupations8. Basic occupations

9. Never worked & long-term unemployed9. Never worked & long-term unemployed

Items Needed for ESECItems Needed for ESEC

Economic Activity StatusEconomic Activity Status• Employee, self-employed, unemployed etc.Employee, self-employed, unemployed etc.

Employment status - ICSE93Employment status - ICSE93• employee, self-employed, employer employee, self-employed, employer

Occupation - ISCO88(Com) + farm sizeOccupation - ISCO88(Com) + farm size Industry of local unit (farm / non-farm)Industry of local unit (farm / non-farm) Establishment size (1-3, 4-9, 10+)Establishment size (1-3, 4-9, 10+) Supervisor (yes/no)Supervisor (yes/no)

Derived EMPSTAT variableDerived EMPSTAT variable Using Employment status, establishment size, supervisor:Using Employment status, establishment size, supervisor:

1.1. Self-employed (non-farm), 10+ Self-employed (non-farm), 10+

2. Self-employed (non-farm) 1-92. Self-employed (non-farm) 1-9

3. Farmer (large)3. Farmer (large)

4. Farmer (medium)4. Farmer (medium)

5. Farmer (small)5. Farmer (small)

6. Self-employed, no employees6. Self-employed, no employees

7. Manager, 10+ employees7. Manager, 10+ employees

8. Manager, < 10 employees8. Manager, < 10 employees

9. Supervisor9. Supervisor

10. Employee10. Employee

Reduced form ESECReduced form ESEC

Where no data on establishment size, Where no data on establishment size, reduced number of classes:reduced number of classes:• Self-employed with employeesSelf-employed with employees• Self employed, no employeesSelf employed, no employees• ManagerManager• SupervisorSupervisor• Employee Employee

The ECHP User Database (UDB)The ECHP User Database (UDB)

The data as distributed by EurostatThe data as distributed by Eurostat User-friendly formatUser-friendly format Cleaned, weighted, imputationCleaned, weighted, imputation But with AnonymisationBut with Anonymisation• reduced detail on occupationreduced detail on occupation

Economic activity in UDBEconomic activity in UDB PE001APE001A Main activity status - self-defined (a)Main activity status - self-defined (a) 11 working with an employer in paid employmentworking with an employer in paid employment 22 working with an employer in paid apprenticeshipworking with an employer in paid apprenticeship 33 working with employer in special training scheme working with employer in special training scheme 44 self-employmentself-employment 55 unpaid work in a family enterpriseunpaid work in a family enterprise 66 in education or trainingin education or training 77 unemployedunemployed 88 retiredretired 99 doing housework, looking after children or othersdoing housework, looking after children or others 1010 in community or military servicein community or military service 1111 other economically inactiveother economically inactive -8-8 not applicablenot applicable -9-9 missingmissing

Less detail for Less detail for SwedenSweden

Status in employmentStatus in employment

PE004PE004 Status in employment (Base=ILO at work)Status in employment (Base=ILO at work)

11 working with an employer in paid employmentworking with an employer in paid employment22 working with an employer in paid apprenticeshipworking with an employer in paid apprenticeship33 working with an employer in training under special working with an employer in training under special

scheme related to employment scheme related to employment (from 1995 only)(from 1995 only)44 self-employmentself-employment55 unpaid work in a family enterpriseunpaid work in a family enterprise-8-8 not applicablenot applicable-9-9 missingmissing

Occupation in UDB - based on ISCO88Occupation in UDB - based on ISCO88 PE006BPE006B Occupation in current job (grouped B)Occupation in current job (grouped B) Legislators, senior officials, managers (11+12, 13)Legislators, senior officials, managers (11+12, 13) Professionals (21+22, 23,24)Professionals (21+22, 23,24) Associate professionalsAssociate professionals (31+32, 33+34)(31+32, 33+34) Clerks (41+42)Clerks (41+42) Service and Sales workers (51, 52) Service and Sales workers (51, 52) Skilled agricultural and fishery workers (61)Skilled agricultural and fishery workers (61) Craft and related trades (71+74, 72+73)Craft and related trades (71+74, 72+73) Plant and machine operators and assemblers (81+83, 82, 84echp)Plant and machine operators and assemblers (81+83, 82, 84echp) Elementary occupations (91, 92, 93, 94echp)Elementary occupations (91, 92, 93, 94echp) -8-8 not applicablenot applicable -9-9 missing, Armed forces, 5-Miscellaneous (ECHP-specific code)missing, Armed forces, 5-Miscellaneous (ECHP-specific code)

Not available Not available for Swedenfor Sweden

PE006A has some more detail, only 6 countriesPE006A has some more detail, only 6 countries

Supervisory status (Employees)Supervisory status (Employees)

PE010 Job status – current job (persons in PE010 Job status – current job (persons in paid employment as main activity)paid employment as main activity)

11 supervisorysupervisory 22 intermediateintermediate 33 non-supervisorynon-supervisory -8-8 not applicablenot applicable -9-9 missingmissing

Problems Belgium (1999-Problems Belgium (1999-2000)2000)

IndustryIndustry

PE007CPE007C Main activity of the local unit of Main activity of the local unit of the business or organisation in current job the business or organisation in current job (Grouped C)(Grouped C)

11 AgricultureAgriculture

22 IndustryIndustry

33 ServicesServices

-8-8 not applicablenot applicable

-9-9 missingmissing

Problems:Problems:

Belgium (1999-2000) Belgium (1999-2000)

Denmark 1999 Denmark 1999

GSOEP (all waves) GSOEP (all waves)

PSELL (1995-1997)PSELL (1995-1997)

Number of EmployeesNumber of Employees

PE008PE008 Number of regular paid Number of regular paid employees in the local unit in current jobemployees in the local unit in current job

11 NoneNone22 1-41-433 5-195-1944 20-4920-4955 50-9950-9966 100-499100-49977 500 or more500 or more-8-8 not applicablenot applicable-9-9 missingmissing

Some national differences; Some national differences; Missing for large number of cases Missing for large number of cases

in public sectorin public sector

Bottom Line - at first glance!Bottom Line - at first glance!

Economic Activity Status - OKEconomic Activity Status - OK Occupation - ISCO88(Com)+ Farm Size Occupation - ISCO88(Com)+ Farm Size • Occ. codes lack detail, but can distinguish Occ. codes lack detail, but can distinguish

professionals, associate professionals, technical, professionals, associate professionals, technical, clerical/sales, craft, basic etc.clerical/sales, craft, basic etc.

• Farm size - possibly base on number employees??Farm size - possibly base on number employees?? Industry (farm / non-farm) - OK except GSOEPIndustry (farm / non-farm) - OK except GSOEP Employment status ( employee, self-employed, etc)-OKEmployment status ( employee, self-employed, etc)-OK Establishment size (1-3, 4-9, 10+) - Cutoff is 5-19Establishment size (1-3, 4-9, 10+) - Cutoff is 5-19 Supervisor (yes/no) - OKSupervisor (yes/no) - OK

Other Issues

Main job vs ‘career job’• for post-retirement work.

Treatment of casual work Minimum hours of work Farm size Classification of currently ‘inactive’ persons -

students, homemakers, retired, unemployed - never worked

Individual or family/household as unit

Indicators of Life-Style DeprivationIndicators of Life-Style Deprivation

• CarCar• Colour TVColour TV• VideoVideo• Micro waveMicro wave• Dish washerDish washer• TelephoneTelephone• Keeping your home Keeping your home

adequately warmadequately warm

• Week annual holiday away Week annual holiday away from homefrom home

• Replacing any worn-out Replacing any worn-out furniturefurniture

• Buying new not second-hand Buying new not second-hand clothesclothes

• Meat, chicken, fish every Meat, chicken, fish every second daysecond day

• Having friends in once a Having friends in once a monthmonth

• In arrears on rent, utilities, HPIn arrears on rent, utilities, HP

Persistent Income Poverty Persistent Income Poverty Lifestyle Deprivation Lifestyle Deprivation EconomicVulnerabilityEconomicVulnerability

Ordered Logit Coefficients for Determinants of Income Ordered Logit Coefficients for Determinants of Income Poverty and deprivation ProfilesPoverty and deprivation Profiles, , Social Class, ECHP 94-98Social Class, ECHP 94-98

0.5680.537

-0.297

1.008

0.293

1.028

1.546

2.084

0.412

1.48

-0.5

0

0.5

1

1.5

2

2.5

Income Poverty Persistence Deprivation Persistence

Manual Self-employed with employeesSmall Holders Small-Holders*Southern EuropeanSelf-employed without employees

Multinomial LMultinomial Logiogit Coefficients for Determinants of t Coefficients for Determinants of Combined income Poverty and Deprivation Persistence Combined income Poverty and Deprivation Persistence Variable Variable ,Social Class,ECHP 94-98,Social Class,ECHP 94-98

0.6250.486

0.492

-0.365

0.042

0.886

0.1330.134

1.224

1.948

1.118

0.2

2.358

0.570.647

2.668

0.129

1.066 0.974

0.084

1.626

-1

-0.5

0

0.5

1

1.5

2

2.5

3

Persistently Income PoorOnly

Persistently DeprivedOnly

Both

Manual Self-employed with employeesSmall Holders Small Holder*(Spain)Small Holder*(Portugal) Small Holder*(Greece)Self-employed without employees

Employment Status and Social Class Composition in Employment Status and Social Class Composition in 1998 by Combined Income Poverty and Deprivation 1998 by Combined Income Poverty and Deprivation Profile Profile ,ECHP 94-98,ECHP 94-98

58.4

1.6

42.0

4.0

66.1

6.6

68.7

8.8

0

10

20

30

40

50

60

70

80

Unemployed > 6Months in 1997

Employee and nounemployment in

past five years

Non-Manual Manual

Neither Persistently Income Poor Only Persistently Deprived Only Both

Vulnerabilily to Social Exclusion by Social ClassVulnerabilily to Social Exclusion by Social Class

0.29

0.63

0.12

0.49

0.24

0.090

0.1

0.2

0.3

0.4

0.5

0.6

0.7

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Non-Manual Self-Employed Manual

Social Class Composition of the Vulnerable ClassSocial Class Composition of the Vulnerable Class

39.7

6.5

46.3

4

74.1 44.7

0

20

40

60

80

100

120

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Non-Manual Self-Employed Manual