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Two Sides to Every Story: Measuring the Polarisation of Work

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Paul Gregg
Jonathan Wadsworth

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Abstract

Individual and household based aggregate measures of joblessness can, and do, offer conflicting signals about labour market performance if work is unequally distributed. Thispaper introduces a simple set of indices that can be used to measure the extent of divergencebetween individual and household-based jobless measures. The indices, built around acomparison of the actual household jobless rate with that which would occur if work wererandomly distributed over the working age population, conform to basic consistency axiomsand can be decomposed to try to identify the likely source of any disparity betweennonemployment rates calculated at the 2 levels of aggregation. Applying these measures todata for Britain, we show that there has been a growing disparity ¿ polarisation - between theindividual and household based jobless measures that are largely unrelated to changes inhousehold structure or the principal characteristics associated with individual joblessness.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0632.

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Date of creation: May 2004
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Handle: RePEc:cep:cepdps:dp0632

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Related research
Keywords: Workless households; Distribution of work; Polarisation; Joblessness;

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Find related papers by JEL classification:
C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General
J0 - Labor and Demographic Economics - - General
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies

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  1. Esteban, J. & Gradin, C. & Ray, D., 1999. "Extension of a Measure of Polarization, with an Application to the Income Distribution of Five OECD Countries," Papers 24, El Instituto de Estudios Economicos de Galicia Pedro Barrie de la Maza.
  2. Haddad, Lawrence & Kanbur, Ravi, 1990. "How Serious Is the Neglect of Intra-Household Inequality?," Economic Journal, Royal Economic Society, vol. 100(402), pages 866-81, September. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Moncel, Nathalie, 2004. "Differentiations in structures of employees' resources: a comparison of eight European countries," IRISS Working Paper Series 2004-02, IRISS at CEPS/INSTEAD. [Downloadable!]
  2. Christian Dustmann & Francesca Fabbri, 2005. "Gender and Ethnicity-Married Immigrants in Britain," CReAM Discussion Paper Series 0502, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
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  3. Nolen, Patrick, 2006. "Unemployment and Family-Values: A Household Distribution Sensitive Measure of Unemployment and Some Applications," Working Papers 05-03rr, Cornell University, Center for Analytic Economics. [Downloadable!]
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