European Socio-economic Classification: Operational Rules David Rose Institute for Social and...

European Socio-economic Classification:European Socio-economic Classification:Operational RulesOperational Rules

David RoseDavid RoseInstitute for Social and Economic Research

University of Essex

Operationalising ESeC: Information Operationalising ESeC: Information RequiredRequired

1) economic activity situation2) occupation3) industry 4) status in employment5) supervisory duties6) size of establishment7) length of current

unemployment spell8) ever worked

9) child under 15 or full-time student

10) permanently sick and disabled

11) in national service12) looking after home13) household reference person14) sector – private/public and15) type of pension received.

The following variables may be involved in the derivation of SEGs and classes.

All of these variables can be derived from other harmonised variables (see Ostby et al 2000), except for household reference person (HRP). However, many existing national surveys and censuses do measure HRP, but not in a standard or harmonised way.

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.

ICSE-93ICSE-93

1. Employees

2. Employers

3. Own account workers

4. Members of producers’ co-operatives

5. Contributing family workers

6. Workers not classifiable by status

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 (and 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.

Number of employees

The size cut-off for enterprise size in the non-agricultural sector varies across the national SECs. Since ISCO88(COM) is the harmonised occupational classification, then the simple rule for ESeC would be that employed by ISCO for managers and employers – 1-9 and 10+. We suggest, however, 1-9, 10-49 and 50+.

Farm sizeFarm size

Most countries do not use this variable. Of those that do, area in hectares is the common measure to distinguish small, medium and large farms, but member states differ in terms of what is meant by ‘small’, ‘medium’ and ‘large’. Simplest solution is to put farmers with any F/T employees in Class 1 and the rest in Class 5.

Working hours and casual employment

Casual employment and the related issue of a minimum number of working hours to qualify individuals for inclusion in the ESeC at the individual level.30+ hours = Full time employmentAll in paid employment included in individual level ESeCIf 2+ jobs, privilege greatest hours

Classification rules for the individual level of Classification rules for the individual level of ESeC 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.

Students

The classification of full-time students:

Students may be treated as a class, but normally excluded from individual ESeC

F/T Students identified in SEGs

Other active and inactive SEGs

Classify to last main (‘career typical’) job except for

Unpaid family workers and F/T students who should be classified to HRP

Managers

Managerial level operationalized through org size rule but size allowed to over-ride OUG.

Public and private sectorsPublic and private sectors

The outline classification does not attempt to make distinctions between SEGs or class positions by sector.

If it were thought necessary to distinguish between groups in the public and private sectors, an appropriate control variable could be introduced into analyses.

However, any ISCO-88 (COM) OUG that is wholly or mainly in either sector will necessarily have employment relations for employees that reflect any sectoral differences that may exist.

Public and private sectors

Not to be included in matrix but possible importance to be assessed in validation studies.

Household level rulesHousehold level rules

The household level of this classification would work in a similar way, except that the ESeC class position (level 1) would be allocated through a household class measure. In this case, those in SEGs 01-08 and 00 would be allocated to their household class.

Equally, those allocated to SEGs 11-95 would take on the ESeC values of their household.

Household reference person

Usually a given, i.e. part of survey design

But if occupational data on all HH members is available, use dominance rules

Information requirements for sub-samples (1)Information requirements for sub-samples (1)

Status Reference period Information required

In employment Last 7 days Current economic activity Occupation (ISCO-88 (COM) OUG Industry (farm/non-farm)Status in employment (ICSE-93)Supervisory duties (Yes/No) Establishment size (local unit)

Unemployed Last 7 days Current economic activityLength of unemployment spell

Last main job Economic activityOccupation (ISCO-88 (COM) OUGIndustry (farm/non-farm)Status in employment (ICSE-93)Supervisory duties (Yes/No)Establishment size (local unit)

National service Last 7 days Current economic activity


Sick and disabled Last 7 days Current economic activity


Information requirements for sub-samples (continued)Information requirements for sub-samples (continued)

Status Reference period Information required

Looking after home Last 7 days Current economic activity


Retired Last 7 days Current economic activity


FT Student/child Last 7 days Current economic activity/age

HRP Last 7 days1 Economic activityOccupation (ISCO-88 (COM) OUGIndustry (farm/non-farm)Status in employment (ICSE-93)Supervisory duties (Yes/No)Establishment size (local unit)

Never worked Ever worked? No.

Note: Or last main job. HRP’s data will be required for any survey/census that requires ESeC at the household level

European Socio-economic Classification: Operational Rules David Rose Institute for Social and...

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