Labour Force Survey Data Research Articles

Multiple faces of labour market segmentation within the Turkish construction industry

Abstract This study explores labour market segmentation within the Turkish construction industry, in a developing country context characterised by refugee influxes and heightened earthquake risks. We apply statistical and regression analyses using 2002–2020 Household Labour Force Survey data to explore segmentation with a specific focus on payment, job type and social security enrolment. The findings reveal a segmented labour market where the progress in regular, permanent and registered employment in the 2000s failed to encompass most construction workers. Lower wages, and temporary and unregistered work are more common among the youngest and oldest workers, those with poor education and qualification levels, immigrants, and those employed by micro enterprises. The construction industry lags behind both manufacturing and services in terms of registered and permanent employment rates and average wages. The prevalence of workers in elementary jobs with little education highlights the ongoing challenge of ensuring a highly skilled workforce, while reconstruction activities in earthquake-prone zones and the demand for urban transformation in Türkiye are increasing. We argue that improvements in working conditions constitute an urgent restructuring component in the sector for elevating the status of construction jobs, addressing the shortage of skilled labour and ensuring a high-quality building stock that upholds the right to a secure life in Türkiye.

Area-Level Model-Based Small Area Estimation of Divergence Indexes in the Spanish Labour Force Survey

Abstract This article develops model-based predictors for area-level proportions of employed men and women by occupation sectors and for entropies and divergence indexes (DIs) within and between sex groups. Since the direct estimators of the proportions add up to one in the occupational sections, they are compositions that can be imprecise if the sample sizes are small. We fit a multivariate Fay–Herriot model to logratio transformations of the direct estimators of the proportions. Small area estimators of the proportions, entropies, and DIs are derived from the fitted model and the corresponding mean squared errors are estimated by parametric bootstrap. Several simulation experiments designed to analyze the behavior of the introduced model-based predictors are carried out. We give an application to Spanish Labour Force Survey data from 2022. The target is to investigate the state of sex occupational entropies and divergences in Spanish provinces.

Post-compulsory schooling of youth in Turkey: a case of pro-cyclical enrollment

PurposeThis study investigates the effect of business cycles on school enrollment in Turkey. During recessions, school enrollment might increase as opportunity cost of schooling declines, yet it might also decrease because of reduced income households have for education. Which effect dominates depends on the context. We empirically explore this in a context displaying canonical features of developing countries.Design/methodology/approachUsing the Turkish Household Labor Force Survey data for a period covering the Great Recession, we estimate the effect of unemployment rate separately for enrollments in general and vocational high schools and in undergraduate programs. To understand the cyclicality, we use a probit model with the regional and time variations in unemployment rates. We also build a simple theoretical model of work-schooling choice to interpret the findings.FindingsWe find that the likelihood of enrolling in general high schools and undergraduate programs declines with higher adult unemployment rates, but the likelihood of enrollment in vocational high schools increases. Confronting these empirical findings with the theoretical model suggests that the major factor in enrollment cyclicality in Turkey is how parental resources allocated to education change during recessions by schooling type.Originality/valueOur finding of pro-cyclical enrollment in academically oriented programs is in contrast with counter-cyclicality documented for similar programs in developed countries, which highlights the importance of income related factors in developing-country contexts. Our heterogeneous findings for general and vocational high schools are also novel.

Covid Lockdown and Employment in the Philippines

The COVID-19 pandemic has severely impacted employment worldwide, mainly due to social distancing measures – hard lockdowns especially. Using difference-in-differences (DiD) analysis on Philippine Labor Force Survey (LFS) data, which exploits (1) the preemptive and selective application of a hard lockdown within the country; and (2) the conduct of the LFS coinciding with the imposition of the hard lockdown in April 2020, this study finds that the hard lockdown has a significant impact on employment apart from the general impact of the pandemic. The hard lockdown’s effect falls mainly on the intensive margin (weekly hours worked) rather than on the extensive margin (number of employed) per se. While employment and hours worked were generally down during the pandemic, the hard lockdown reduced weekly hours worked by an additional 18 hours. The most heavily affected workers are young male workers with low to medium educational attainment levels; and workers in sectors with low telework potential: Manufacturing, Construction, and Transportation. These results may inform the scope and form of government assistance given the limited fiscal space; and highlight the importance of developing digital skills and technologies to minimize the adverse employment impacts of hard lockdowns.

Who Suffers the Most During the COVID‐19 Pandemic? Evidence From Thailand

This study investigates Thailand's recent labor market disruption induced by the coronavirus disease 2019 (COVID‐19) pandemic using its Labor Force Survey data from 2018 to 2021. We provide empirical evidence to validate the varied effects among different demographic categories. Workers that are the most adversely affected by the COVID‐19 pandemic are (1) in high‐risk sectors, (2) less educated, (3) young workers, and (4) parents. Our empirical results show that the unemployment rate positively relates to marital status and sectorial risk levels—that is, married and public sector employees are less likely to be unemployed. Furthermore, less occupational flexibility and parenthood decrease wages, and these effects are more prominent for women, suggesting the country's “she‐cession.”

Labour market trends in South Africa in 2009–19: A lost decade?

ABSTRACT While the South African labour market showed some signs of improvement in the 2000s with unemployment rate gradually dropping to as low as 22.7% at the end of 2007, things unfortunately turned downhill in 2009–19 (sometimes referred to as the ‘lost decade’). Using the 2009 and 2019 Quarterly Labour Force Survey data, this study derived descriptive statistical estimates on labour force, employment and unemployment; the empirical findings suggested strongly that patterns in the labour market outcomes deteriorated during this decade. Unemployed individuals were largely black Africans and concentrated amongst the less educated individuals. They remained out of work for longer and, on average, spent more time seeking employment. The data also indicated the presence of hysteresis in unemployment. Key ameliorating policies in this scenario are skills development and structural reform in the labour market. The former is difficult to achieve, even in the long-term, while the latter is politically challenging.

The college wage premium in the UK: decline and fall?

Abstract We exploit two longitudinal cohort studies for birth cohorts of 1970 and 1990 to assess the change in the UK college wage premium (CWP) for those aged 25–26 years. After controlling for a rich set of covariates, we find evidence of a decline in the average CWP from 18 per cent to 8 per cent. The extent of the fall is common to men and women; hence, it is not driven by changes in sex composition over this time period. Our results contrast with previous findings of relative stability in the CWP over time. In a complementary analysis, we exploit Labour Force Survey (LFS) data from 1995 to 2019 to explore the timing of the fall in the CWP and to assess whether the decline is specific to particular birth cohorts or age ranges of workers.

Measuring Employment and Unemployment from a Fuzzy Perspective. A Comparative Analysis Across European Countries

AbstractAccording to the standards set by the International Labour Office, people of working age who have performed some remunerated work during a specified short reference period are classified as employed, regardless of how many hours they have worked, while those who have not been able to work at all (despite wanting to) are classified as unemployed. As observed by many experts in the field, this rigid division between employed and unemployed can conceal labour markets with deeply different characteristics. In particular, the average number of hours worked and, more importantly, their distribution across employees may vary significantly across countries. The aim of this paper is to define fuzzy indicators of employment and unemployment by using the available information on the number of hours worked and the satisfaction or dissatisfaction of workers with this. In this approach, each person in the labour force is assigned a degree of employment between 0 and 1, where 0 means full non-membership in the fuzzy set of employed (and full membership in the fuzzy set of unemployed) and 1 means full membership in the fuzzy set of employed. To show the potentiality of the proposed method, we apply fuzzy measures to Labour Force Survey data from 29 European countries and compare the results with the official employment and unemployment statistics published by Eurostat.

Racial Capitalism and Entrepreneurship: An Intersectional Feminist Labour Market Perspective on UK Self-Employment

This article explains entrepreneurial activity patterns in the United Kingdom labour market using theories of racial capitalism and intersectional feminism. Using UK Office for National Statistics Labour Force Survey data 2018–2019 and employing probit modelling techniques on employment modes, self-employment types and work arrangements among differing groups, we investigate inequality in self-employment within and between socio-structural groupings of race, class and gender. We find that those belonging to non-dominant gender, race and socio-economic class groupings experience an intersecting set of entrepreneurial penalties, enhancing understanding of the ways multiple social hierarchies interact in self-employment patterns. This robust quantitative evidence challenges contemporary debates, policy and practice regarding the potential for entrepreneurship to offer viable income generation opportunities by those on the socio-economic margins.

Unveiling Sri Lanka's brain drain and labour market pressure: A study of macroeconomic factors on migration.

The purpose of this study is to explore the impact of GDP per capita income (GDPPCI), unemployment, higher education (HE), and economic growth (EG) on migration in Sri Lanka. Numerous global and local studies have explored the influence of macroeconomic and socioeconomic factors on migration. In the Sri Lankan context, fewer studies have probed the impact of GDPPCI, unemployment, HE, and EG on migration, particularly concerning brain drain and domestic labour market pressure. An applied research methodology was adopted, utilising annual data from 1986 to 2022. The statistical data were sourced from reports by the Sri Lanka Bureau of Foreign Employment (SLBFE), the Central Bank of Sri Lanka (CBSL), Labor Force Survey Data from the Department of Census and Statistics (LFSDCS), and University Grants Commissions (UGC). This study utilised the Vector Error Correlation model (VECM), Vector Auto-regression (VAR), and Granger Causality test through STATA. The empirical findings of the VAR model highlighted that GDPPCI and EG negatively impact migration, whereas unemployment and HE positively affect migration. The study's implications demonstrated that GDPPCI, unemployment, HE, and EG were the primary factors influencing the country's migration decisions. These findings will hopefully inform and guide the Sri Lankan government and policymakers for more effective decision-making.

Internal Migration in Pakistan: Some Socio-Economic Determinants and Significances

ABSTRACT: Since early years, humans are migrating to ensure their survival or to improve their socio-economic position in society. In Pakistan, internal migration has not been given proper attention in policy making. Consequently, government is facing problems in managing the challenges and opportunities posed by internal migration. The present study attempted to analyse socio-economic factors that play crucial role in a household's decision to migrate internally by using data of Labour Force Survey 2020-21. In the questionnaire of labour force survey, there is a specific section related to migration. The migration is defined as 'households that has moved from one district to another district or to different country', it excludes the migration within district. The logit regression has been used to estimate the model. It has been found that more educated people particularly having professional and technical education tends to migrate. The internal migration increases with age, but after certain level it tends to start declining. It has also concluded that employment in public sector (due to job security or provision of housing facilities) motivate people to internally migrate. People belonging to middle income families are more likely to migrate in comparison to rich or very poor. Study confirms that search of better job opportunities and family compulsions are major factors in internal voluntary migration. However, law and order situations emerge as a significant factor in forced migration. As the internal migration are much higher than international migration so there is need that role of internal migration may be recognised in reducing poverty, employment and socio-economic development. Unfortunately, there exists lack of policy on internal labour flows. Most the labour force is not even registered at migration destinations. It is very crucial to calculate value of domestic remittances. It will be helpful in devising the policy to improve the status of internal migrants by providing them targeted technical and vocational education training so that they can get better job opportunities in destination places.

Revisiting Earnings Differentials across Socio-religious Groups in the Regular Salaried Employment in India

In India, the differences in a range of development indicators, including wages and earnings, along the spatial, caste, religious and ethnicity lines have been a serious concern. This article revisits the wage disparities and discrimination among regular salaried male workers across five categories of socio-religious groups. Using nationally representative Periodic Labour Force Survey (2018–2019) data, we examine the pattern of disparity and the associated endowment and institutional factors leading to unequal labour market outcomes. Our findings suggest that all the groups—Scheduled Tribes (STs), Scheduled Castes (SCs), Other Backward Classes (OBCs) and Muslims continue to earn significantly lower wages than ‘Others’—the non-ST/SC/OBC/Muslim group. On decomposing the wage gap using the Blinder–Oaxaca decomposition method, we observe that the share of unexplained components reflecting discriminatory treatment continues to be significant. While the wage gap is highest for Muslims and SCs, discrimination is high against SCs and OBCs and lowest against Muslims. Higher education and institutional factors explain a significant proportion of the wage gap for these groups. For STs, urban location and higher education explain most of the differences. In addition, quantile regression results indicate a wider gap at the bottom and a narrower gap at the top of the wage distribution, signalling a ‘sticky-floor’ phenomenon for ST, SC and OBC workers. JEL Codes: E24, J71, J49

Examining the Gender Wage Gap between Engineers with Paraprofessional Qualifications versus Undergraduate Degrees in Trinidad and Tobago

The literature on Science, Technology, Engineering, and Mathematics (STEM) field reveals that even with incentives to encourage women into the field of engineering, their level of enrolment and graduation remains low. This study aims to first examine the overall wage returns of all engineers in Trinidad and Tobago and second their gender wage gap at the paraprofessional (certificate/diploma) and undergraduate (first-degree) level of qualifications. Using Labour Force Survey (LFS) data for the 1991-2015 period, the returns of engineers are analysed by estimating a Mincerian earnings equation, and then an Oaxaca-Blinder wage decomposition, using a statistical level of significance, i.e., 0.1% it was found that in the first instance, the earnings of paraprofessional engineers were generally negative (fewer earnings) and significantly smaller than undergraduate engineers. Undergraduate engineers’ earnings appeared to be larger, and positive, and exhibited rising returns, with the highest returns shown at q80 of 18.8%, and the lowest returns at q20 of 13.2%. The earnings of undergraduate female engineers, although higher than their male colleagues, appeared to be falling across the wage distribution, i.e., from 12.7% to 8.2% between q10-q90, but benefit from higher earnings if employed in a low-income job. In the second instance, when looking at the field of engineering as a whole there is a gender wage gap of 1.7%, but when the type/level of qualification is considered, it produces a gender wage gap of 19.6% for engineers with paraprofessional qualifications, and 12.3% for engineers with an undergraduate degree in engineering. The largest gender wage gap is observed amongst engineers holding paraprofessional qualifications. Further analysis into the different components of this gap (unexplained, explained and interaction) reveals that female engineers are more likely to be discriminated against, especially when holding an undergraduate degree in engineering (4.8%), when compared to a paraprofessional qualification (3.6%). Thus, the gender wage gap does not favour female engineers. The paper expands on existing research on the gender wage returns associated with different fields of study and provides detailed evidence of the gender wage gap and the wage patterns emerging from the field of engineering in Trinidad and Tobago, regarding key groups of engineers holding paraprofessional and undergraduate qualifications in the field. It also gives important insights into the earnings of men and women in engineering for the period 1991-2015.

Gender inequality in leadership positions

The fact that women are still less likely than men to hold leadership positions is evident across Europe, with gender differences varying among countries. This paper examines how part-time employment contributes to the gender gap in leadership positions between women and men working in highly skilled occupations. In doing so, we pay particular attention to whether and possibly how the correlation between part-time work and a leadership position is mediated by gender, as employment levels and gender have often been confounded in empirical studies in the past. The analyses are based on European Union Labour Force Survey data and cover seven European countries. Our results confirm that part-time work is related to the gender gap in leadership positions in all countries studied, with a negative correlation between reduced working hours and holding a supervisory position, and with women being much more likely than men to work part-time. Our findings also suggest that part-time penalties, i.e. the negative association between reduced working hours and having supervisory responsibilities, are gender-specific, but in the sense that they are more pronounced for male workers. Our findings further imply that the extent of part-time penalties is not related to the prevailing part-time culture in a country.

Overview of Informal Sector Workers Viewed from Education Variables


 
 
 
 The Special Region of Yogyakarta has a significant population engaged in the informal sector. This study aims to explore the relationship between educational level and participation in the informal sector. The data used in this study is from the August 2022 Sakernas (National Labor Force Survey) data. Descriptive analysis was employed to address the research objectives. The research findings reveal that over half of the population is employed in the informal sector. Workers with higher levels of education tend to transition to the formal sector, while less educated individuals dominate the informal sector. Education not only influences sectoral choices but also has an impact on conditions within the informal sector. Workers with higher education experience better conditions, regardless of the field of business, working hours, or income level. They engage in businesses that require capital, demonstrating organization, efficiency, and higher earnings. Some educated informal workers take part-time jobs while waiting for other opportunities.
 
 
 

Effect of COVID-19 Pandemic on Labour Market Outcomes in Kenya

Purpose: This paper investigated the effect of COVID-19 pandemic on the labour market outcomes in Kenya, using quarterly labour force survey data (2019 to 2021), 2019 census data and COVID-19 wave II of a novel high-frequency phone survey collected from May 30th to June 6th, 2020. The study also estimated the impact of COVID-19 pandemic on unemployment rate by using the quarterly Labour Force Survey data from 2019 to 2022.
 Methodology: The study applied probit models because of the non-linearity of the variables. More specifically, the dependent variables are binary terms, hence maximum likelihood estimation techniques are the most appropriate.
 Findings: The findings of the study reveal that COVID-19 was associated with a 25-percentage point’s increase in the unemployment rate in the country with certain counties witnessing the highest spikes in unemployment. Although there has been some recovery, the unemployment rate remains elevated compared to pre-pandemic levels, signifying ongoing labour market challenges. COVID-19 impact on the labour market varied significantly by sector. The education sector experienced a higher incidence of employment loss, while income losses were more pronounced in sectors such as mining, manufacturing, retail, transport, and construction. Particularly, women workers in the retail and transport sectors faced twice the likelihood of income loss compared to their male counterparts. The pandemic disproportionately affected low-income workers and casual labourers, accentuating income inequalities in the labour market. Casual workers, who often lack labour protections and benefits, were significantly impacted.
 Unique Contribution to Theory, Practice and Policy: Considering these findings, the study provides several policy recommendations: Implementing targeted interventions and support programs in counties with the highest unemployment spikes. These interventions can include skill development programs to enhance workers' employability and tailored employment and income support strategies adapted to each county's unique economic circumstances. Prioritize the adoption of Information and Communication Technology (ICT) to enhance resilience and adaptability across sectors. Governments, both at the national and county levels, should prioritize policies aimed at enhancing the incomes of disadvantaged households. Through expanding access to social protection programs, enforcing minimum wage regulations, and improving working conditions, especially for casual workers and low-income households. The study's insights provide valuable guidance for shaping future economic recovery strategies, particularly in the event of economic shocks in the labour market.

Occupational feminization, gender, and wages: evidence from Thailand

This study examines the relationship between occupational feminization and wages in Thailand using the Thailand Labor Force Survey data (LFS) (2008-2017). Employing the Augmented Inverse Probability Weighting (AIPW) and the Inverse Probability Weighted Regression Adjustment (IPWRA) double robust matching techniques, this study investigates the effects of occupational feminization and the interaction effect of occupational feminization and gender on wages. The findings indicate that occupational feminization decreased wages in Thailand, and the negative effect weakened over time. While the gender wage gap persisted in feminized occupations over the years, there was a reduction in the gender wage gap in non-feminized occupations. The wage gap between females in feminized occupations and males in non-feminized occupations decreased over time, even though it remained larger than the overall gender wage gap. Male workers continued to take advantage and ride the “glass escalator” in both feminized and non-feminized occupations.

Gender differences in formal wage employment in urban Tanzania

ABSTRACT We use the Tanzania Integrated Labour Force Survey data and a censored bivariate probit model to analyse gender differences in labour force participation and gender bias in formal wage employment in urban Tanzania. We find that, compared to men, women are less likely to participate in the labour market and less likely to obtain formal wage employment, suggesting the existence of gender bias in the labour market in urban areas of Tanzania. However, after accounting for selection into labour force participation, the existing gender bias is narrowed for women with high school or university education. The regression results suggest that the existing gender differences in formal wage employment probabilities cannot entirely be explained by observable characteristics. The finding of a positive unexplained formal wage employment probability differential suggests that the possibility of gender discrimination against women in urban Tanzania cannot be completely ruled out.

Identifying the envelope wages phenomenon based on LFS and SES data sets – evidence from Poland

This paper deals with the problem of identifying envelope wages based on the Labour Force Survey (LFS) and the Structure of Earnings Survey (SES). The research samples have been adjusted so that the distribution of individuals in both databases is the same. The maximum likelihood method is used and the parameters of multilevel models that explain wages are estimated. Theoretical wages for selected workers groups are calculated. Based on differences between the theoretical wages of individuals from the LFS and SES databases, a measure associated with envelope wages is calculated. The novelty of this study lies in providing a new method for evaluating the phenomenon of envelope wages. The analysis indicates that various features of the employees and enterprises significantly affect the propensity to receive an envelope wage. This propensity is also strongly determined by affiliation to a NACE section. Regional differentiation of the propensity to receive envelope wages was also identified. This problem is urgent in light of the negative demographic tendencies in Poland and similar countries of the Central and Eastern Europe that lead to an intensified competition for employees. However, cost competition does not allow for significant increases of labour costs. Therefore, fiscal authorities in Poland and similar countries should rethink their taxation policies.

First to $15: Alberta’s Minimum Wage Policy on Employment by Wages, Ages, and Places

Most minimum wage studies are identified on small, plentiful, mostly expected wage changes, spread out over time. A recent set of changes have instead been large, rapid, and unexpected, following the “Fight for $15” movement. Alberta is the first North American province, state, or territory to have this $15 minimum wage, with an unexpectedly large increase (47%) occurring over a short time horizon (3 years). The employment effects of this policy are estimated using a synthetic control approach on Labour Force Survey data. Similar to the existing literature, workers moved up the wage distribution, increment by increment, but with a higher distributional reach. Employment losses occurred at similar elasticities, but with large level changes, mostly among younger workers. Newer to the literature, regional employment losses were found in four of the five non-urban economic regions, but not in Alberta’s two main cities, showing the significance and nuance of regional heterogeneity.