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Behind and beyond the (head count) employment rate

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  • Andrea Brandolini
  • Eliana Viviano

Abstract

This paper argues that we need more general statistical indices to analyse European labour markets. First, the paper discusses some normative aspects implicit in the current definition of the employment rate, which is a fundamental policy target in the new Europe 2020 strategy. Second, it proposes a class of generalised indices based on work intensity, as approximated by the total annual hours of work relative to a benchmark value. Third, it derives household-level employment indices within a consistent framework. These indices provide a more nuanced picture of the European labour markets, which better reflects the diversity in the use of part-time and fixed-term jobs as well as other factors affecting the distribution of work across and within households.
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  • Andrea Brandolini & Eliana Viviano, 2016. "Behind and beyond the (head count) employment rate," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 179(3), pages 657-681, June.
    • Handle: RePEc:bla:jorssa:v:179:y:2016:i:3:p:657-681
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    File URL: http://hdl.handle.net/10.1111/rssa.12134
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    1. Giulia Bovini & Emanuele Ciani & Marta De Philippis & Stefania Romano, 2023. "Labour income inequality and in-work poverty: a comparison between euro area countries," Questioni di Economia e Finanza (Occasional Papers) 806, Bank of Italy, Economic Research and International Relations Area.
    2. Andrea Brandolini & Eliana Viviano, 2014. "Accounting for total work," Questioni di Economia e Finanza (Occasional Papers) 253, Bank of Italy, Economic Research and International Relations Area.
    3. Baert, Stijn, 2021. "The iceberg decomposition: A parsimonious way to map the health of labour markets," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 350-365.
    4. D’Amuri, Francesco & De Philippis, Marta & Guglielminetti, Elisa & Lo Bello, Salvatore, 2022. "Slack and prices during Covid-19: Accounting for labor market participation," Labour Economics, Elsevier, vol. 75(C).
    5. Ose, Solveig Osborg & Kaspersen, Silje Lill & Leinonen, Taina & Verstappen, Suzanne & de Rijk, Angelique & Spasova, Slavina & Hultqvist, Sara & Nørup, Iben & Pálsson, Jón R. & Blume, Andreas & Paterno, 2022. "Follow-up regimes for sick-listed employees: A comparison of nine north-western European countries," Health Policy, Elsevier, vol. 126(7), pages 619-631.
    6. Franecsca Carta, 2019. "Timely indicators for labour income inequality," Questioni di Economia e Finanza (Occasional Papers) 503, Bank of Italy, Economic Research and International Relations Area.
    7. Andrea Brandolini & Eliana Viviano, 2016. "Accounting for total work in labour statistics [Der Gesamtbetrag der Arbeit in den Arbeitsmarktstatistiken]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(3), pages 199-212, November.
    8. Fontanari, Claudia & Palumbo, Antonella & Salvatori, Chiara, 2022. "The updated Okun method for estimation of potential output with alternative measures of labor underutilization," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 158-178.
    9. John Komlos, 2019. "Estimating Labor Market Slack, U.S. 1994-2019," CESifo Working Paper Series 7941, CESifo.
    10. Marco Paccagnella, 2015. "Skills and Wage Inequality: Evidence from PIAAC," OECD Education Working Papers 114, OECD Publishing.
    11. John Komlos, 2020. "The Actual U.S. Unemployment Rate Was 24.4% in May 2020," CESifo Working Paper Series 8383, CESifo.
    12. John Komlos, 2019. "The Real U.S. Unemployment Rate Is Twice the Official Rate, and the Phillips Curve," CESifo Working Paper Series 7859, CESifo.
    13. Eliana Viviano & Andrea Brandolini, 2018. "Measuring employment and unemployment," IZA World of Labor, Institute of Labor Economics (IZA), pages 445-445, August.
    14. Guido Bulligan & Elisa Guglielminetti & Eliana Viviano, 2017. "Wage growth in the euro area: where do we stand?," Questioni di Economia e Finanza (Occasional Papers) 413, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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