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Labor Underutilization in European Countries: Some Facts About Age and Gender

Author

Listed:
  • Yasemin ÖZERKEK

    (Department of Economics, Marmara University, Istanbul, Turkey)

  • Fatma DİDİN SÖNMEZ

    (Department of Economics, Istanbul Bilgi University, Istanbul, Turkey)

Abstract

It is undeniably accepted that labor underutilization has important consequences for econ-omies and societies. Unemployment that is the narrowest measure of labor underutilization is one of the main concerns for policymakers, investors, and society. Besides the standard unemployment rate, there are alternative measures of labor underutilization providing a wider picture of the underutilization of workforce. This study aims to delineate some facts about labor underutilization by age and gender for a group of European countries in a broader view. For this purpose, specifically, time-related underemployment and potential labor force data are employed to measure the labor underutilization along with unemployment. It is observed that there are significant gender and age differences in the labor underutilization components across countries. Elasticity and descriptive analyses together verify that time-related under-employment is more sensitive to unemployment than the potential labor force. While the sensitivity of time-related underemployment to changes in unemployment differs by gender and age, the potential labor force is almost equally sensitive to unemployment regardless of age and gender. The study additionally displays the degree of reallocation between underutilization components and suggests a higher reallocation for the young than adults. On the other hand, reallocation between labor underutilization components is not gender-biased.

Suggested Citation

  • Yasemin ÖZERKEK & Fatma DİDİN SÖNMEZ, 2021. "Labor Underutilization in European Countries: Some Facts About Age and Gender," Yildiz Social Science Review, Yildiz Technical University, vol. 7(2), pages 137-146, December .
    • Handle: RePEc:aye:journl:v:7:y:2021:i:2:p:137-146
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Age; gender; labor underutiliza-tion; unemploymentJournal: Yildiz Social Science Review;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General
    • F30 - International Economics - - International Finance - - - General
    • G00 - Financial Economics - - General - - - General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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