1. Kieran Walsh ILO Department of Statistics
Revision of International Classification of Status in Employment (ICSE-93)
Kieran Walsh
ILO Department of Statistics
ILO Department of Statistics

2. ICSE-93 Substantive Groups
Background to revision
ICSE-93 Substantive Groups

3. ICSE-93 Substantive Groups
Paid employment jobs
1. Employees
Self-employment jobs
2. Employers
3. Own-account workers
4. Members of producers’ cooperatives
5. Contributing family workers
6. Workers not classifiable by status

4. Reasons for revision
Categories do not provide sufficient information to adequately monitor changes in employment arrangements taking place in many countries
increasing uncertainty about the boundary between self-employment and paid employment
increased use of ‘dependent’ contractors, short-term and zero hours contracts etc.
Need for statistical information to monitor the impact of these arrangements
Need for guidance on data collection
19th ICLS Resolution concerning statistics of work, employment an labour underutilization
Changed definition of employment
New forms of work
Strong consensus at the 19th ICLS on the need to revise ICSE-93

5. ICSE-93 Substantive Groups
ICSE-18 conceptual approach
ICSE-93 Substantive Groups

6. Classification criteria for ICSE-18
The framework uses two aspects of the work relationship as criteria to differentiate categories of jobs and work activities according to status.
type of authority that the worker is able to exercise in relation to the work performed and
the type of economic risk to which the worker is exposed.
A relatively detailed set of mutually exclusive categories is defined on the basis of these criteria, to form the Classification of Status of Worker.
The subset of these categories that relate to employment form the Classification of Status in Employment.
ILO Department of Statistics

7. Typologies
For many ‘standard’ cases the risk to authority relationship is straightforward – ‘employees’ have low risk and authority, ‘employers and own account workers’ have high risk and authority
However some cases not so straightforward
This can lead both to misclassification and misinterpretation
ILO Department of Statistics

8. Classification of status based on type of Authority/dependency (ICSE-18-A)
Independent workers
Employers
Employers in corporations
Employers in household market enterprises
Independent workers without employees
Owner-operators of corporations without employees
Own-account workers in household market enterprises 
Dependent workers
Employees
Permanent employees
Fixed-term employees
Casual and short-term employees
Paid apprentices, trainees and interns
Dependent contractors
Contributing family workers

9. Classification of status based on the type of economic Risk (ICSE-18-R)
Workers in employment for profit
Employers in household market enterprises
Own-account workers in household market enterprises
Dependent contractors
Contributing family workers
Workers in employment for pay
Owner-operators of corporations
Employers in corporations
Owner-operators of corporations without employees
Employees
Permanent employees
Fixed-term employees
Casual and short-term employees
Paid apprentices, trainees and interns

10. Outline of proposed new standards for statistics on the work relationship
Conceptual framework for statistics on the work relationship
defines the key concepts, variables and classification schemes to be included in the standards
Classification of Status at Work
Extension of the classification of Status in Employment to cover all forms of work, including own-use production work, volunteer work and unpaid trainee work, as well as employment
A set of cross-cutting variables
More detailed information on the degree of stability and permanence of the work
Definitions and categories for types of arrangement that cut across several status categories
Important variables in own right
In some cases also required to derive status in employment categories
Guidance on measurement
ILO Department of Statistics

11. ICSaW-18 -Employment -Own-use production work -Unpaid trainee work
I Independent workers
1 Employers
11 Owner-managers of corporations with employees
12 Employers in household market enterprises
13 Employers in own-use production of services
14 Employers in own-use production of goods
15 Volunteers employing others
2 Own-account workers
21 Operators of corporations without employees
22 Own-account workers in household market enterprises
23 Own-account workers in own-use production of services
24 Own-account workers in own-use production of goods
25 Own-account volunteers
D Dependent workers
3 Dependent contractors
30 Dependent contractors
4 Employees
41 Permanent employees
42 Fixed-term and seasonal employees
43 Casual and short-term employees
5 Contributing family workers
51 Contributing family workers
52 Family helpers in own-use production of services
53 Family helpers in own-use production of goods
6 Unpaid apprentices, trainees and interns
60 Unpaid apprentices, trainees and interns
7 Dependent volunteers
70 Dependent volunteers
9 Other workers
90 Other workers
-Employment
-Own-use production work
-Unpaid trainee work
-Volunteer work
-Other work activities
5 Family helpers
Measurement frequency for different forms of work may differ and will be based on national priorities
ILO Department of Statistics

12. ICSE-93 Substantive Groups
ICSE-18 measurement approach
ICSE-93 Substantive Groups

13. Measurement approach background
In parallel with work to develop the concepts ILO has been developing measurement approaches and collaborating on testing
Aim is to identify an efficient set of questions which can measure the concepts
Using testing to assess impact and ‘quality’
ILO Department of Statistics

14. Three steps structure s STEP 1 Self-identified status in employment
Self-employed - Classification module
Contributing family workers - Classification module
Employees - Classification module
STEP 2
Sub-classification module
STEP 3
ILO Department of Statistics

15. Step 2 For self-employed (possibly 4 questions)
Identify if they have employees and are incorporated or not (employer vs own account worker)
If not incorporated and no employees, assess if a dependent contractor (different possible approaches)
For employees (possibly 3 questions)
Identify payment type (wage, salary, profit)
Identify responsibility for taxes/social security contributions
For CFW (possibly 2 questions)
Identify if payment received
Identify role in decision making (can be reclassified to employer/own account worker)
ILO Department of Statistics

16. Third step Sub-classification modules targeting classified: Employees
Features of the contract (permanent, fixed term, duration)
Guarantee of hours (zero hours)
ILO Department of Statistics

17. ICSE-18
ILO Department of Statistics

18. Testing (1)
Three different operationalization's of dependent contractors have been tested
Main client approach (dep_1);
Unincorporated enterprise
Without employees
At lest 75 pct. of the income from one client, and the client(s) control the working time
Price control approach (dep_2);
Do not control the price setting of the services/goods produced
Sharing the profit approach (dep_3);
Share the profit/income with a third party
ILO Department of Statistics

19. Testing (2) Main results: ILO invite countries to do more tests
Shows questions are generally understood
Small overlap between the different approaches
Results very sensitive to operational approach chosen
=> Choice of operationalization will determine the outcome
ILO invite countries to do more tests
countries can decide on how and what to test, ILO will support and provide input
Subjects can include dependent contractors (both among self-employed and employees), zero hours contracts etc.
ILO Department of Statistics

20. Next steps Tripartite meeting in February 2018
Additional testing and development work
Tests can feed into the review and influence the classification
ICLS will take place 10th to 19th October, 2018 in Geneva
ILO Department of Statistics

21. Qualification and skills mismatch
ILO Department of Statistics

22. Qualification and experience mismatch of persons in employment
Employed
A: Matched by level and field of education and experience training
B: Mismatched by level and filed of education and experience
Mismatched by level of education
Mismatched by field of study
Mismatched by years of experience/training
Mismatched and searching for another job

23. Skill mismatch of persons in employment
Employed
A: Matched by type and level of skills
B: Mismatched by type and level of skills
Mismatched by job-specific/technical skills
Mismatched by basic skills
Mismatched by transverable/core/ soft/portable skills
Mismatched and searching for another job

24. Qualification and skills mismatch – next steps
Further testing desired
Subjective skills mismatch (impact of use of different numbers of questions)
Can be linked to the AHM 2022 on skills but useful to have testing during 2018 to influence guidelines for 20th ICLS
Reporting to 20th ICLS with draft guidelines
ILO Department of Statistics

25. Impact on LFS Will depend on final shape of ICSE
Additional questions should be required
Issues of core importance to understanding of the labour market and how it is changing
ILO looking for testing partners for
ICSE (dependent contractors, zero hours contracts etc)
Skills mismatch
Volunteer work
ILO Department of Statistics

26. Thank you
ILO Department of Statistics

27. Classification module for SI Self-employed
Having employees in the reference period (all SI Self-employed) Eneterprise is incorporated or not (all SI Self-employed)
ILO Department of Statistics

28. Classification module for SI Self-employed
Option: Control over setting the price for goods or services produced
( Own-account workers in household market enterpises)
ILO Department of Statistics

29. Classification module for SI employees
Type of remuneration (all SI employees) Option 1. Responsibility for social insurance or deducting income taxes
For this work are you paid.. (Mark all that apply)
A wage, salary
By piece
-Commissions, tips
Fee for services
Profit
Unpaid OR
ILO Department of Statistics

30. Classification module for SI- CFW Might be relevant for some countries
Type of remuneration
For this work are you paid.. (Mark all that apply)
A wage, salary
By piece
-Commissions, tips
Fee for services
Profit
Unpaid
Operational decisions ( Not yet decided)
ILO Department of Statistics

31. Sub-classification module for employees
Guaranteed amount of hours (all employees)
ILO Department of Statistics

32. Sub-classification module for employees
Employment agreement is open-ended or limited (all employees) The duration of the limited employment (employees with limited contract/agreement)
ILO Department of Statistics

33. Dependent contractors
Are characterised by that they have a similar economic risk as independent workers but have less authority
They are “dependent, for access to the market, determination of the price for the goods or services produced, raw materials or capital items, or organization of the work, on another economic unit that directly benefits from the work performed by the contractor.”
It is an heterogeneous group; some might self-identify themselves as being employees and some as being self-employed
ILO Department of Statistics

34. Dependent contractors -three operationalization's
ILO Department of Statistics

35. Overlap
-21 pct. of the persons in the main client approach are also captured with the price control approach
-And 13 pct. in the price control approach are also captured with the main client approach
-Overlap between Price control approch and sharing of profit is larger 66 pct.
Capture different respondents with different operationalization's; small overlap in most cases
ILO Department of Statistics

36. Register information
Industry
ILO Department of Statistics

37. Occupation
ILO Department of Statistics

38. Other characteristics
Comparison with all unincorporated enterprises without employees
Main client approach
Higher share of high educated professionals, with a lower working time, slightly less job satisfaction, slightly less turnover.
Price control approach
Similar education level, longer working hours, are in general satisfied with their job
Sharing of profit
Higher share of high educated professionals, longer working hours, are more satisfied with their job
ILO Department of Statistics

39. Conclusions Numbers are small
The questions are in general perceived well with the exception of “sharing profit with a third party”
The questions can be further improved
Small overlap between the different approaches
Different characteristics in age, educational level, industry, occupation turnover, working time
Capture different respondents with different operationalization's
The choice of operationalization will determine the outcome
ILO Department of Statistics