Work Package 11 Using ESEC based on ECHP to examine class differences in Persistent Poverty, Deprivation and Economic Vulnerability

Outline n ESEC Classes and Information needed n Items available in ECHP UDB n Assessment of ECHP UDB adequacy n Other issues to be considered n Persistent Income Poverty and Deprivation and EconomicVulnerability

ESEC classes (Feasibility Report, 2001) 1.Large employers, higher managers / professionals 2.Lower managers / professionals 3. Intermediate (clerks, technical, sales, service) 4. Small employers, own account workers 5. Employers & self-employed -agriculture 6. Lower supervisory, technical 7. Semi-routine 8. Basic occupations 9. Never worked & long-term unemployed

Items Needed for ESEC n Economic Activity Status Employee, self-employed, unemployed etc.Employee, self-employed, unemployed etc. n Employment status - ICSE93 employee, self-employed, employeremployee, self-employed, employer n Occupation - ISCO88(Com) + farm size n Industry of local unit (farm / non-farm) n Establishment size (1-3, 4-9, 10+) n Supervisor (yes/no)

Derived EMPSTAT variable n Using Employment status, establishment size, supervisor: 1. Self-employed (non-farm), Self-employed (non-farm) Farmer (large) 4. Farmer (medium) 5. Farmer (small) 6. Self-employed, no employees 7. Manager, 10+ employees 8. Manager, < 10 employees 9. Supervisor 10. Employee

Reduced form ESEC n Where no data on establishment size, reduced number of classes: Self-employed with employeesSelf-employed with employees Self employed, no employeesSelf employed, no employees ManagerManager SupervisorSupervisor EmployeeEmployee

The ECHP User Database (UDB) n The data as distributed by Eurostat n User-friendly format n Cleaned, weighted, imputation n But with Anonymisation reduced detail on occupationreduced detail on occupation

Economic activity in UDB n PE001AMain activity status - self-defined (a) n 1working with an employer in paid employment n 2working with an employer in paid apprenticeship n 3working with employer in special training scheme n 4self-employment n 5unpaid work in a family enterprise n 6in education or training n 7unemployed n 8retired n 9doing housework, looking after children or others n 10in community or military service n 11other economically inactive n -8not applicable n -9missing Less detail for Sweden

Status in employment PE004Status in employment (Base=ILO at work) 1working with an employer in paid employment 2working with an employer in paid apprenticeship 3working with an employer in training under special scheme related to employment (from 1995 only) 4self-employment 5unpaid work in a family enterprise -8not applicable -9missing

Occupation in UDB - based on ISCO88 n PE006BOccupation in current job (grouped B) n Legislators, senior officials, managers (11+12, 13) n Professionals (21+22, 23,24) n Associate professionals(31+32, 33+34) n Clerks (41+42) n Service and Sales workers (51, 52) n Skilled agricultural and fishery workers (61) n Craft and related trades (71+74, 72+73) n Plant and machine operators and assemblers (81+83, 82, 84echp) n Elementary occupations (91, 92, 93, 94echp) n -8not applicable n -9missing, Armed forces, 5-Miscellaneous (ECHP-specific code) Not available for Sweden PE006A has some more detail, only 6 countries

Supervisory status (Employees) PE010 Job status – current job (persons in paid employment as main activity) n 1supervisory n 2intermediate n 3non-supervisory n -8not applicable n -9missing Problems Belgium ( )

Industry PE007CMain activity of the local unit of the business or organisation in current job (Grouped C) 1Agriculture 2Industry 3Services -8not applicable -9missing Problems: Belgium ( ) Belgium ( ) Denmark 1999 GSOEP (all waves) PSELL ( )

Number of Employees PE008Number of regular paid employees in the local unit in current job 1None or more -8not applicable -9missing Some national differences; Missing for large number of cases in public sector

Bottom Line - at first glance! n Economic Activity Status - OK n Occupation - ISCO88(Com)+ Farm Size Occ. codes lack detail, but can distinguish professionals, associate professionals, technical, clerical/sales, craft, basic etc.Occ. codes lack detail, but can distinguish professionals, associate professionals, technical, clerical/sales, craft, basic etc. Farm size - possibly base on number employees??Farm size - possibly base on number employees?? n Industry (farm / non-farm) - OK except GSOEP n Employment status ( employee, self-employed, etc)-OK n Establishment size (1-3, 4-9, 10+) - Cutoff is 5-19 n Supervisor (yes/no) - OK

Other Issues n n Main job vs ‘career job’ for post-retirement work. n n Treatment of casual work n n Minimum hours of work n n Farm size n n Classification of currently ‘inactive’ persons - students, homemakers, retired, unemployed - never worked n n Individual or family/household as unit

Indicators of Life-Style Deprivation Car Car Colour TV Colour TV Video Video Micro wave Micro wave Dish washer Dish washer Telephone Telephone Keeping your home adequately warm Keeping your home adequately warm Week annual holiday away from home Week annual holiday away from home Replacing any worn-out furniture Replacing any worn-out furniture Buying new not second-hand clothes Buying new not second-hand clothes Meat, chicken, fish every second day Meat, chicken, fish every second day Having friends in once a month Having friends in once a month In arrears on rent, utilities, HP In arrears on rent, utilities, HP

Persistent Income Poverty Lifestyle Deprivation EconomicVulnerability

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

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

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

Vulnerabilily to Social Exclusion by Social Class

Social Class Composition of the Vulnerable Class