Reconciling Workless Measures at the Individual and Household Level. Theory and Evidence from the United States, Britain, Germany, Spain and Australia
AbstractIndividual and household based aggregate measures of worklessness can, and do, offer conflicting signals about labour market performance. We outline a means of quantifying the extent of any disparity, (polarisation), in the signals stemming from individual and household-based measures of worklessness and apply this index to data from 5 countries over 25 years. Built around a comparison of the actual household workless rate with that which would occur if work were randomly distributed over household occupants, we show that in all the countries we examine, there has been a growing disparity between the individual and household based workless measures. The polarisation count can be decomposed to identify which household groups are exposed to workless concentrations and can also be used to test which individual characteristics account for any excess worklessness among these household groups. We show that the incidence and magnitude of polarisation varies widely across countries, but that in all countries polarisation has increased. For each country most of the discrepancies between the individual and household workless counts stem from within-household factors, rather than from changing household composition.
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Bibliographic InfoPaper provided by Department of Economics, Royal Holloway University of London in its series Royal Holloway, University of London: Discussion Papers in Economics with number 04/04.
Length: 43 pages
Date of creation: Apr 2004
Date of revision: Apr 2004
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Other versions of this item:
- Paul Gregg & Rosanna Scutella & Jonathan Wadsworth, 2010. "Reconciling workless measures at the individual and household level. Theory and evidence from the United States, Britain, Germany, Spain and Australia," Journal of Population Economics, Springer, vol. 23(1), pages 139-167, January.
- Paul Gregg & Rosanna Scutella & Jonathan Wadsworth, 2004. "Reconciling Workless Measures at the Individual and Household Level: Theory and Evidence from the United States, Britain, Germany, Spain and Australia," CEP Discussion Papers dp0635, Centre for Economic Performance, LSE.
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-06-22 (All new papers)
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