the european socio-economic classification: a summary and explanation esec validation conference,...
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The European Socio-economic Classification: The European Socio-economic Classification: A Summary and ExplanationA Summary and Explanation
ESeC Validation ConferenceESeC Validation Conference, , Lisbon, January 2006Lisbon, January 2006
David Rose & Eric HarrisonDavid Rose & Eric Harrison
ISERUniversity of Essex
Conceptual basis for the ESeCConceptual basis for the ESeC
• Work of John Goldthorpe
• Employment relations and conditions are central to delineating the structure of socio-economic positions in modern societies
• Twin concepts:
– Asset specificity
– Ease/Difficulty of monitoring
The Derivation of the ESeCThe Derivation of the ESeC
Basic SEC Positions
EMPLOYERS SELF-EMPLOYEDWORKERS
EMPLOYEES EXCLUDED
Dimensions of work as sources of contractual hazard
Difficulty of
monitoring
Specificity of human assets
low
low
high
high
Typical elements of the Typical elements of the Labour ContractLabour Contract
• Short-term exchange of money for effort
• Payment by the time or piece
• No occupational pension or health scheme
• Contract easily terminated
• Low level of job security
Typical elements of the Typical elements of the Service RelationshipService Relationship
• Long-term exchange of service for compensation• Greater job security and employability• Salary• Incremental or similar payment systems• Occupational pension and health schemes• Greater control over the job and thus trust
between employer and employee
Dimensions of work as sources of contractual hazard, forms of contract and class locations
Difficulty of
monitoring
Specificity of human assets
low
low
high
high
Labour c
ontract
Service
relat
ionsh
ip
mixed
mixed
6
3
1
9
The conceptual derivation of ESeCThe conceptual derivation of ESeC
Basic SEC PositionsBasic SEC Positions
EMPLOYERSEMPLOYERS SELF-EMPLOYEDSELF-EMPLOYEDWORKERSWORKERS
EMPLOYEESEMPLOYEES EXCLUDEDEXCLUDED
LABOUR CONTRACTLABOUR CONTRACT
Form of employment regulationForm of employment regulation
SERVICE RELATIONSHIPSERVICE RELATIONSHIP MIXEDMIXED
Higherprof
Lower prof/Tech
Other Agric etc
Higherprof
Lower prof/Tech
Other Agric etc
Higherprof
Lowerprof/Tech
Other
Lower
SupProf/Tech
ManProf Man
Higher
Never Never workedworked
LargeLarge SmallSmall
Super- Serv- Lower routineSuper- Serv- Lower routinevisory/ ices technicalvisory/ ices technicalTechnicianTechnician
Clerical Sales Services Clerical Sales Services
Professional Professional managerial, etcmanagerial, etc
Unemp-Unemp-loyedloyed
1 1 1 1 2 5 4 1 2 5 4 1 1 2 2 2 3 3 3 6 7 8 9 10 101 1 1 1 2 5 4 1 2 5 4 1 1 2 2 2 3 3 3 6 7 8 9 10 10
Form of ClassificationForm of Classification
The outline classification takes the form of a two-level nested hierarchy, similar to classifications such as the French PCS. In its disaggregated form (level 2, what we term ‘Socio-economic Groups’ - SEGs) it covers the whole population at the individual level.
SEGs to cover various ‘other active’ and inactive groups.
Individuals in such groups may then be allocated to ESeC classes in a variety of ways, depending partly on analytic purpose and partly on the group concerned.
Current ESeC ‘Classes’ (Level 1)Current ESeC ‘Classes’ (Level 1)
1. Large employers, higher managerial and professional occupations
2. Lower managerial and professional occupations3. Intermediate occupations4. Small employers and own account workers5. Employers and self-employed in agriculture6. Lower supervisory and lower technician occupations7. Lower services etc occupations8. Lower technical occupations9. Routine occupations10. Never worked and long term unemployed
Underlying ESeC ‘Socio-economic Underlying ESeC ‘Socio-economic Groups’ (Level 2)Groups’ (Level 2)
11. Employers (other than in agriculture) with 10+ employees
12. Farmers with full-time employees (or ‘large business’ farmers)
13. Higher managerial occupations
14. Higher professional occupations (employees)
15. Self-employed professional occupations
Class 1 Large employers, higher managerial and professional occupations
Other active groupsOther active groups01. Other unemployed
02. Unpaid family workers
03. National service
Inactive groupsInactive groups04. Retired
05. Students (full-time)
06. Children
07. Permanently sick and disabled
08. Looking after home
Not classifiableNot classifiable00. Not classifiable (occupations not given or
inadequately described etc.)
Classification rules for the Classification rules for the individual level of ESeC individual level of ESeC
The ‘other unemployed’ in SEG 01, unpaid family workers in SEG 02, national service personnel in SEG 03 and the inactive SEGs 04 - 08 do not immediately collapse to any class.
Rather, individuals in these groups are (re-) allocated to the group of their ‘career typical’ (usually last ‘main’) job or to their household class.
Number of SEGs (1)Number of SEGs (1)
As far as the number of SEG categories to be recognised within each class is concerned, this is partly an issue of face validity, i.e. of grouping together in sub-categories similar types of occupations that share similar employment relations.
It should be noted that the SEGs within this outline classification are only postulated ones, designed to help illustrate how a possible two-level classification might work.
Constructing ESeCConstructing ESeC
For a fully operationalised ESeC we need measures of :
occupation, status in employment enterprise sizelabour market position
In addition, some measure of farm size may be necessary, too, in order to distinguish capitalist farmers from other (e.g. subsistence) farmers.
OccupationOccupation
For the most part occupation is measured either by (4-digit) ISCO88(COM) or by a national occupational classification similar to it. France is exceptional in this regard, but has developed a Table des Correspondances between the Catégories Socioprofessionnelles (CSP) and ISCO88(COM). ISCO88(COM) is a core variable for the Eurostat harmonisation programme and so is the obvious measure of occupation to use for ESeC.
Status in employmentStatus in employment
All SECs distinguish between employers, the self-employed (own account workers) and employees. In the EU context, we may need to add the category of family worker. The EU harmonised variable is ICSE-93.
Number of employees
The size cut-off for enterprise size in the non-agricultural sector varies across the national SECs: 1-9, 10+; 1-24, 25+; 1-49, 50+ or combinations of these. However, since ISCO88(COM) is the harmonised occupational classification, then the initial simple rule for ESeC will need to be that employed by ISCO for managers and employers – 1-9 and 10+.
Labour market positionLabour market position
It is necessary to distinguish more than activity status. Our theoretical model requires us to discriminate between employers by size, the self-employed, and between managers (by size of enterprise or preferably managerial level), supervisors and other employees.
Managerial status will be dependent on allocation to Major Group 1 of ISCO88(COM). Thus, labour market position involves a combination of ICSE-93, enterprise size and supervisory status.
Example illustration of parts of the ESeC derivation matrixExample illustration of parts of the ESeC derivation matrix
Note: in this table, for simplicity’s sake, we assume a seven-category empstat (i.e. that ‘farm’ can be established via ISCO).
Employment status
ISCO OUG
Self-emp 10+
Self-emp <10
Self-emp none
Manager 10+
Manager <10
Super-visor
Employee
12xx 111 x x 113 x x x
13xx x 441 442 X 221 x x
3xxx 115 225 225 x x 222 222
3yyy 115 225 225 x x 222 222
5xxx x x 225 333
Reduced ESeCReduced ESeC
Data sets often do not contain full information, so we can produce a ‘reduced ESeC’, derived in much the same way, except that (ignoring agriculture again) the employment status variable would only have five categories:
1. Self-employed with employees;2. Self-employed with no employees;3. Manager4. Supervisor5. Employee
The ESeC category for self-employed with employees and for managers would be based on the modal employment status category for each occupation.
Using Fewer ISCO Digits
• Datasets do not always code occupation to four digits – often three or two
• We can construct matrices for every combination of occupation and extra information, i.e.
• 4 digit full, reduced, simplified• 3 digit full, reduced, simplified
• 2 digit full, reduced, simplified
Timetable of Work
• Create derivation matrices: done• Matrices + report to partners, NSIs, Eurostat and
experts for responses - done• Statistical Compendium – completed• Validation studies – reported and presenting
today!• ESeC User Guide – Spring 2006• NSIs’ Workshop – Summer 2006, Bled, Slovenia
Request for Assistance/Participation
• We want continuing feedback from existing and potential users of socio-economic classifications
• Ongoing website at www.iser.essex.ac.uk/esec• Matrices and syntax available:
• Contact [email protected] or [email protected].