Classification of Employment Status: ICSE-18 Categories and Sub-Categories, Lecture notes of Business

Download Classification of Employment Status: ICSE-18 Categories and Sub-Categories and more Lecture notes Business in PDF only on Docsity! INTERNATIONAL LABOUR OFFICE ICLS/20/2018/Room document 4 20th International Conference of Labour Statisticians Geneva, 10-19 October 2018 Room Document*: 4 Data collection guidelines for ICSE-18 * This room document has not been formally edited 1 Abstract 1. The aim of this paper is to outline how the data collection of the International Classification of Status in Employment 2018 (ICSE-18) can be structured. The exercise is important for assessing how the conceptual framework works in practice and to initiate a discussion of what recommendations that should be given to countries once ICSE-18 is to be implemented. 2. The data collection guidelines, as presented in this document, focuses on status in employment and does not at this stage address statuses referring to the different forms of unpaid work. 3. The guidelines are based on the latest draft of 20th ICLS resolution concerning statistics on work relationships (ILO, 2018a). This implies that the content will be adapted to the outcomes of the discussion at the 20th International Conference of Labour Statisticians (ICLS). In addition the guidelines will need to be continually updated, also after the 20th ICLS, to reflect the latest methodological work and countries gained experience. 4. The measurement approach for household surveys can be divided into three different steps that comprise different classification and sub-classification modules. The modular structure ensures a flexible approach that can be used in different statistical sources with different levels of detail and frequency depending on the national context and need. First step 5. The first step builds upon the current widespread practice in household surveys of using one or two single questions for collecting status in employment as defined in the 15th ICLS resolution concerning the International Classification of Status in Employment (ICSE-93). However, this practice will not be sufficient to classify the status in employment as defined by ICSE-18. The first step should rather be viewed as a self-identified status in employment that is used to further filter the respondent to the relevant classification module. The self-identified status in employment should as a minimum capture self-identified self-employed, employees and contributing family workers. Second step 6. Depending on the outcome of the question(s) in the first step, the respondent will be filtered to a classification module. The classification modules consist of questions that are based on the key characteristics that needs to be established for identifying the relevant 2nd level category. The classification module for self-identified self-employed will also identify the 3rd level category for independent workers due to an overlap in key characteristics for independent workers on the 2nd level and 3rd level categories. 7. The three different classification modules target respectively self-identified self-employed, employees and contributing family workers and will identify the following 2nd level and 3rd level categories: Employers Employers in corporations Employers in household market enterprises Independent workers without employees Owner-operators of corporations without employees Own-account workers in household market enterprises without employees Dependent contractors Dependent contractors Employees Contributing family workers Contributing family workers 4 1 Table of Contents Abstract ........................................................................................................................................................ 1 First step ................................................................................................................................................... 1 Second step .............................................................................................................................................. 1 Classification module for self-identified self-employed. ...................................................................... 2 Classification module for self-identified employees. ........................................................................... 2 Classification module for contributing family workers ........................................................................ 2 Third step .................................................................................................................................................. 2 Sub-classification module for employees ............................................................................................. 2 Testing ...................................................................................................................................................... 2 Statistical sources ..................................................................................................................................... 2 Abbreviations................................................................................................................................................ 7 1 Introduction .......................................................................................................................................... 8 2 International Classification of status in employment (ICSE-18) ........................................................... 9 2.1 International Classification of status in employment according to type of authority ................. 9 2.2 Identification of key characteristics of the 2´nd level categories in ICSE-18-A .......................... 10 2.3 Identification of key characteristics of the 3rd level categories in ICSE-18-A ............................. 12 3 Approach for collecting ICSE-18 in household surveys. ..................................................................... 14 3.1 Self-identified Status in employment module ............................................................................ 14 3.2 Classification module for self-identified self-employed ............................................................. 15 3.3 Classification module for self-identified employees .................................................................. 17 3.4 Sub-Classification module for employees .................................................................................. 19 3.5 Classification module for self-identified contributing family workers ....................................... 21 3.6 Classification module for dependent contractors ...................................................................... 22 3.7 Overall structure ......................................................................................................................... 24 4 Approach for collecting ICSE-18 using administrative sources .......................................................... 26 5 Approach for collecting ICSE-18 using establishment surveys ........................................................... 29 6 Data sources ....................................................................................................................................... 29 6.1 Labour force survey .................................................................................................................... 30 6.1.1 Current practice .................................................................................................................. 30 6.1.2 Other national categories of interest. ................................................................................ 31 6.2 Current practice in relation to the ICSE-18................................................................................. 31 6.2.1 Self-identified status in employment module. ................................................................... 32 6.2.2 Classifications and sub-classification modules ................................................................... 32 6.3 Other sources ............................................................................................................................. 32 6.3.1 Other household surveys .................................................................................................... 32 6.3.2 Census ................................................................................................................................. 34 5 6.3.3 Establishment surveys ........................................................................................................ 34 6.3.4 Administrative sources ....................................................................................................... 34 7 Collecting the cross-cutting variables ................................................................................................. 36 7.1 Cross-cutting variables in a household survey ........................................................................... 37 7.1.1 Cluster 1: Contract/agreement ........................................................................................... 38 7.1.2 Cluster 2: The economic unit .............................................................................................. 38 7.1.3 Cluster 3: Remuneration ..................................................................................................... 39 7.1.4 Cluster 4: Working hours .................................................................................................... 39 7.1.5 Cluster 5 Interlinks .............................................................................................................. 39 7.1.6 Cluster 6 Social protection .................................................................................................. 41 7.2 Cross-cutting variables in administrative sources ...................................................................... 42 7.2.1 Cluster 1: Contract/agreement ........................................................................................... 42 7.2.2 Cluster 2: The economic unit .............................................................................................. 42 7.2.3 Cluster 3: Remuneration ..................................................................................................... 42 7.2.4 Cluster 4: Working hours .................................................................................................... 42 7.2.5 Cluster 5 Interlinks .............................................................................................................. 43 7.2.6 Cluster 6 Social protection .................................................................................................. 43 8 Bibliography ........................................................................................................................................ 44 9 Annex 1 ............................................................................................................................................... 46 1.1 Self-identified status in employment module .................................................................................. 46 1.2 Classification module for self-identified owners of businesses/self-employed ............................... 48 1.2.1 Key characteristic: Having employees ....................................................................................... 48 1.2.2 Key characteristic: Incorporated/unincorporated ..................................................................... 49 1.2.3 Key characteristic: Operational and/or economic dependency on another economic unit ...... 50 1.3 Classification module for self-identified employees ........................................................................ 55 1.3.1 Key characteristic: Remuneration .............................................................................................. 55 1.4 Sub-Classification module for employees ........................................................................................ 58 1.4.1 Cross-Cutting variable: Type of employment agreement .......................................................... 58 1.4.2 Key characteristic: Guaranteed minimum amount of hours ..................................................... 58 1.4.3 Key characteristic: Time-limited employment arrangement ..................................................... 59 1.4.4 Key characteristic: Reason for non-permanence of job ............................................................. 60 1.4.5 Key characteristic: Duration of work contract ........................................................................... 60 1.5 Classification module for self-identified contributing family workers ............................................. 61 1.5.1 Key characteristic: Type of remuneration .................................................................................. 61 1.5.2 Key characteristic: Decision making .......................................................................................... 61 9.1 Annex2 Additional cross-cutting variables ................................................................................. 62 2. Preference for non-permanence of job .......................................................................................... 62 6 2.1 Seasonal work ............................................................................................................................... 62 2.2 Duration of employment in current economic unit ..................................................................... 62 2.3 Number of employees in the economic unit ................................................................................ 63 2.4 Main form of remuneration ......................................................................................................... 64 2.5 Multiparty relationship ................................................................................................................. 64 9 2 International Classification of status in employment (ICSE-18) 29. ICSE-18 comprises the statuses that refer to work relationships defined as employment. The boundaries of ICSE-18 are therefore set by the boundaries for employment as defined in the 19th ICLS resolution concerning statistics of work, employment and labour underutilization (ILO, 2013). The definition of employment is outside the scope of ICSE-18 (and these guidelines). Instead there is a presumption that the form of work has been correctly identified and defined and that the second step is to classify the employed person’s job(s) by status in employment. However, it should be stressed that if the form of work is not correctly defined then per definition the work status in that form of work will also be wrongly classified. The category of contributing family workers is an example of this. Contributing family workers can indirectly benefit from the work by intra-household transfers but are not directly paid for the work carried out. It is therefore essential that unpaid contributing family workers are correctly classified as employed in the initial step to be able to classify their job in the category contributing family workers. 30. The different categories in status in employment can be organized along the two dimensions of type of economic risk and type of authority, which creates two different hierarchies. Both hierarchies are useful from a data collection point of view. The hierarchy based on type of authority, which creates a dichotomy between independent and dependent workers, would be a logical structure for an operationalization when the statistical source is a household survey and the hierarchy based on economic risk, which creates a dichotomy between employment for pay and employment for profit, would be more adapted as a structure for an operationalization when the information is collected by administrative sources. 31. The hierarchy based on type of authority is therefore used as a conceptual starting point for the identification of the key characteristics used to operationalize the measurement of ICSE-18 in a household survey. The use of the hierarchy based on type of economic risk is discussed in the chapter regarding using administrative sources for collecting ICSE-18. It should be stressed that both hierarchies can be created once all 3rd level categories have been collected so the choice of operational structure will not impact on the possibilities for creating both hierarchies, once data have been collected. 2.1 International Classification of status in employment according to type of authority 32. The classification of Status in Employment according to type of authority (ICSE-18-A) has five different 2nd level categories (A-E) and ten different 3rd level categories (11-51) as can be seen in box 1. 10 Box 1. Employment according to type of authority (ICSE-18-A) Independent workers A Employers 11 Employers in corporations 12 Employers in household market enterprises B Independent workers without employees 21 Owner-operators of corporations without employees 22 Own-account workers in household market enterprises without employees Dependent workers C Dependent contractors 30 Dependent contractors D Employees 41 Permanent employees 42 Fixed-term employees 43 Short-term and casual employees 44 Paid apprentices, trainees and interns E Contributing family workers 51 Contributing family workers 33. The five different categories at the second level: employers, independent workers without employees, dependent contractors, employees and contributing family workers can be used as a starting point for structuring the measurement of ICSE-18 in a household survey. To use this as a starting point would be natural since the categories at the third level are sub-categories to the 2nd level. For example, all employees (a 2nd level category) have certain characteristics that define this group. These characteristics are shared among all the sub-categories of employees at the 3rd level (permanent employees, fixed-term employees, short-term and casual employees and paid apprentices, trainees and interns). From an operational point of view this implies that once all employees are identified they can be further divided in the different sub- categories depending on further specific characteristics. This top-down approach creates a flexible system that allows a consistent approach at the 2nd level independently of whether the 3rd level categories are collected with a different frequency or if they are not collected at all. 2.2 Identification of key characteristics of the 2´nd level categories in ICSE-18-A 34. The five different 2nd level categories in ICSE-18-A have different unique characteristics or key characteristics that can be used to create boundaries between the categories and by that operationally define them. The different key characteristics can be turned into questions to be integrated in a survey. The key- characteristics are thereby a bridge between the conceptual definition of a category and the measurement of that category. 35. Employers: are persons who operate their own business either on their own or in partnership with others in which they employ one or more persons on a regular basis (except themselves, their partner or a 11 contributing family worker). “On a regular basis” refers to having at least one employee in the reference period and at least two of the three weeks preceding the reference period. 36. Independent workers without employees: operate a business on their own or in partnership with others in which they do not employ any person other than themselves, their partner or a contributing family worker on a regular basis. 37. Having employees: is a key characteristic that separates employers from independent workers without employees. Both categories share the characteristics that they own and control the activities of the economic unit, however, independent workers without employees do not employ, while employers do. In both cases the economic unit may or may not be incorporated. 38. Employees: are workers who do not hold controlling ownership over the economic unit in which they are employed. They are typically paid for time worked but can also be paid for each task or piece of work done or for services provided including sales (by the piece or commission). They are not paid according to the terms of a commercial contract for the provision of goods or services. 39. The combination of the characteristics that employees do not hold controlling ownership over the economic unit in which they are employed and that they are paid in cash or kind for the volume of work that they preform is unique for employees. This combination of characteristics can´t be found in the other four categories. 40. Dependent contractors: are workers employed for profit, who are dependent on another entity that exercises explicit or implicit control over their activities and directly benefits from the work performed by them. Their dependency may be of an operational nature, through organization of the work and/or of an economic nature such as through control over access to the market, the price for the goods or services produced, or access to raw materials or capital items. By definition, dependent contractors:  Do not have a contract of employment  Are not paid for time worked  Do not on a regular basis employ one or more persons as employees  Do not operate an incorporated enterprise 41. Incorporated/unincorporated: dependent contractors by definition are not operators of incorporated enterprises. The distinction between incorporated and unincorporated is a legal distinction. An incorporated enterprise constitutes a legal entity in itself and an unincorporated enterprise is not a separate legal entity from the person(s) who owns and operates it. 42. Operational and/or economic dependency on another economic unit that exercise control over the activities: dependent contractors share characteristics with own-account workers in household market enterprises without employees. They are workers that operate their own unincorporated enterprise without employed persons. The unique difference in characteristics between dependent contractors and own- account workers in household market enterprises without employees is that dependent contractors are operationally and/or economically dependent on another entity that controls their activities. The following characteristics may be relevant for identifying the boundary between dependent contractors and own- account workers in household market enterprises without employees. a) their work is organized or supervised by another economic unit as a client, or as an entity that mediates access to clients b) the price paid for the goods produced or services provided is determined by the client or an intermediary c) access to raw materials, equipment or capital items is controlled by the client or an intermediary 43. Type of remuneration: the situation of a dependent contractor can also be very similar to that of an employee, especially when looking at the actual working arrangements and conditions. A dependent 14 3 Approach for collecting ICSE-18 in household surveys. 60. It is essential that the data collection approach is flexible enough to allow an adaptation to different types of household surveys, while still ensuring harmonised data collection across surveys. In addition it is important to provide enough flexibility to enable countries to measure different categories with different frequency and to make it possible for countries to integrate categories that are of specific national interest. A modular three step approach would fulfil these criteria. 61. The first step builds on the widespread practice of using one single question to measure ICSE-93. However, the self-identified status in employment will not be sufficient to classify ICSE-18, not even at its first level. In addition it has been shown that self-identification alone may not always provide a sufficiently accurate distinction between the employers, own-account workers and employees as defined in ICSE-93 (Abraham, K. et al 2017 and Bonin, H. and U. Rinne, 2017). The outcome of the first step should therefore rather be viewed as self-identified status in employment. 62. The second step collects the information needed to either verify the initial status from the first step or re- classify the respondent to a correct category. The second step includes different sets of questions (classification modules) that establish the key characteristics necessary for creating the boundaries between the 2nd level categories: i.e. employers, independent workers without employees, dependent contractors, employees and contributing family workers. Due to an overlap in key characteristics between the 2nd and 3rd level categories for employers and independent workers without employees the classification modules will also identify the 3rd level categories for these groups. 63. The third step identifies the 3rd level categories for those defined as employees. The 3rd level classification is carried out by using a set of questions (called a sub-classification module) that measures the key characteristics that operationally defines the sub-categories of employees. Table 1. Overview of the three different steps 1st step: Self-identified status in employment -Self-employed -Employee -Contributing family workers -(Paid apprentices, trainees, interns) -Additional categories of national interests 2nd step: Classification modules Categorisation of: -Employers -Employers in corporations -Employers in household market enterprises -Independent workers without employees -Owner-operators of corporations without employees -Own-account workers in household market enterprises without employees -Dependent contractors -Employees -Contributing family workers 3rd step: Sub-Classification module Categorisation of: Sub-classification of employees -Permanent employees -Fixed-term employees -Short-term and casual employees -Paid Apprentices, Trainees, interns 3.1 Self-identified Status in employment module 64. The aim with the module is to establish the status in employment as identified by the respondent or by the proxy respondent. The self-identified status in employment is then used actively in the questionnaire to either verify the self-identified status (in many cases this will be the result) or to establish that the self- identified status and the actual status are not the same. In the latter case the respondent would be re- classified. To start out with a self-identified status in employment creates a flexible structure that can be used by countries to develop their questionnaires based on the current structure of measuring ICSE-93. 15 65. The focus of the module should be to create a respondent friendly question that is natural for the respondents and where the information can be used to filter the respondent further to a classification module. Taking this into account it could be argued that categories such as, employee, self-employed, owner of a business, employer, contributing family worker and own account worker (if the terminology is commonly used in the national context) do fulfil these two criteria. However, dependent contractors cannot be regarded as a respondent friendly category and should therefore not be part of the self-identified status in employment. 66. It is possible that there are certain sub-categories of dependent contractors in a given country that could be included as a direct category. However, this would require that the category per definition can be defined as dependent contractors without any further probing, otherwise it would be necessary to include a classification module for that specific response category to correctly classify the respondent. The same is valid for all additional categories that might be included in the self-identified status in employment question due to national interests 67. The self-identified status in employment module should as a minimum be able to identify the following categories: ­ Employees ­ Self-employed ­ Contributing family workers ­ (Paid apprentices, trainees and interns) 68. There are numerous different ways in which the self-identified status in employment can be collected and countries should strive to create a respondent friendly approach built on their experience from measuring ICSE-93. Self-identified status in employment can be collected by asking one single question or by using multiple questions. Different wordings can be used depending on national language and context. For different examples of questions see Annex 1.1. 69. The different categories can be divided into sub-categories depending on the national context and need. For example the category of self-employed can be replaced by the two categories own-account worker and employer. 70. The category of Paid apprentices, trainees and interns is relevant to include when the sub-classification of employees is part of the data collection. The category would be redundant if the aim is to only identify the 2nd level categories and if there is no special interest in separately identifying paid apprentices, trainees and interns as a special sub-category of employees. 71. Independently of the exact version and formulation of the question(s) the self-identified status in employment will not be sufficient in order to classify ICSE-18 not even at its first level. Different classification modules are necessary in order to create the necessary boundaries between the different categories. 3.2 Classification module for self-identified self-employed 72. The classification module for self-identified self-employed classifies respondents that have identified themselves (or been identified by a proxy respondent) as self-employed into employers, independent workers without employees and dependent contractors by establishing three key characteristics. The module will also collect sufficient information for classifying the 3rd level sub-categories of independent workers without employees and employers. 73. The key characteristic that separates employers from independent workers without employees and dependent contractors is that employers employ at least one person (other than themselves, a partner or a family member) on a regular basis. 16 74. The first step should include question(s) that identifies whether the self-identified self-employed have one or more employees in the reference period and at least two of the three weeks preceding the reference period. (See Annex 1.2.1 for examples.) 75. Respondents that have identified themselves as being self-employed and do have employees are classified as employers. As can be seen in flowchart 1. 76. The next step in the module is to establish whether the enterprise is incorporated or not. This key characteristic excludes respondents from being classified as dependent contractors (that per definition do not operate an incorporated enterprise) and creates the sub-categories of employers and independent workers without employees. The question should therefore be asked of all respondents self-identified as self-employed. The question should include commonly used terms for the legal forms of incorporated enterprises that exist in the country. While respondents who do not operate an incorporated enterprise may not be familiar with these terms, it is likely that those who do, as well as their proxy respondents, will be well aware of the legal form of their business. 77. The second step should include question(s) that identifies if the establishment is incorporated or not. (See Annex 1.2.2 for examples.) 78. The last step in the module is to establish whether those who are owners of a business without employees in an unincorporated enterprise should be classified as own-account workers in household market enterprises without employees or dependent contractors. The key characteristic that distinguishes the two categories is whether they are operationally and/or economically dependent on another economic unit that exercises control over their activities. It is not yet given how this key-characteristic should be operationalized. Different types of operationalization have been tested and more tests are needed for establishing how to best operationalize this dimension (see room document 10 - Testing of proposals for a revised International Classification of Status in Employment, ILO, 2018b). The different operationalization that have been tested includes:  If the client or intermediary determines the price for the goods or services produced.  If the client or intermediary provides the material input (access to raw materials, capital items or clients).  The work is organized or supervised by one main client 79. The third step should include a question(s) identifying whether the self-identified self-employed in an unincorporated enterprise without employees are operationally and/or economically dependent on another economic unit that exercise control over their activities. (See Annex 1.2.3.1-1.2.3.5 for examples.) 80. Respondents that have identified themselves as self-employed, have an unincorporated enterprise without employees and are operational and/or economic dependent on another economic unit are classified as dependent contractors. While respondents that have identified themselves as self-employed and have an unincorporated enterprise without employees but do not have that dependency are classified as independent workers without employees. 81. The module will also collect sufficient information for the classification of the 3rd level sub-categories employers in corporations, employers in household market enterprises, owner-operators of corporations without employees and own-account workers in household market enterprises without employees as can be seen in flowchart 1. The possibility to classify both the 2nd level and 3rd level categories with the same questions makes a sub-classification module for self-identified self-employed redundant. 19 Flowchart 2. 2nd level outcome of the classification module for self-identified employees 3.4 Sub-Classification module for employees 93. The sub-classification module for employees targets respondents that, based on the classification modules, are defined as being employees and categorise them in one out of the four following sub-categories of employees:  Permanent employees  Fixed-term employees  Short-term and casual employees  Paid apprentices, trainees and interns 94. The sub-categories of employees relies on the identification of the following key characteristics; guaranteed minimum amount of hours, time-limited employment arrangement, reason for non-permanence of job and duration of employment arrangement. 95. The first step is to establish whether the employee has a written or oral employment agreement. (See Annex 1.4.1 for examples). The information is not necessary for identifying the sub-category of the employee but is used for sequencing the questions. This is particularly relevant in countries where oral agreements are common or Self indentified employment status Employee Forms of renumeration Employment relationship E.g. “Employer” responsible for deduction of tax or contributions to national insurances E.g. Actual payment to social insurance or place of work employer’s premises Module for self- identified employees Do not receive wage or salary and do not only receive tips Dependent contractor No Employees Yes Recieves Wage/Salary Only recieves tips 20 when respondents perceives that there is no employment agreement for example due to that they are casual workers or day labours. 96. The second step should include a question(s) identifying whether the employee has a guaranteed minimum amount of contractual/agreed hours or not. (See Annex 1.4.2 for examples). 97. If the employee has an arrangement that provides employment for at least a certain number of hours per pay period then the employee does have a guaranteed minimum amount of contractual/agreed hours. If not then the employee has a no guaranteed minimum amount of hours and is defined in the sub-category short- term and casual employees, as can be seen in flowchart 3. The question can be integrated into a module measuring working time, in order to achieve a more natural context for the respondent. Countries that have national expressions that are commonly known by respondents and that reflects this key characteristic such as “zero-hours contracts” can use these expressions in the question. 98. The second step includes a question(s) that identifies whether the employment agreement is time-limited or open-ended. (See Annex 1.4.3 for examples). 99. If the employee has an open-ended employment arrangement and the employee is guaranteed a minimum amount of hours then the employee is defined as a permanent employee, as can be seen in flowchart 3. 100. The third step includes a question(s) for the reason for non-permanence of the job. (See Annex 1.4.4 for examples). 101. The question should as a minimum include the categories stated in the cross-cutting variable reason for non-permanence of job. If the reason is stated to be trainee, apprenticeship or internship then the respondent will be defined in the sub-category paid apprentices, trainees and interns. The sub-category paid apprentices, trainees and interns can also be identified by including this category directly in the self- identified status in employment question, as can be seen in flowchart 3. 102. The fourth step includes a question(s) that measures the duration of the employment relationship. (See Annex 1.4.5 for examples). 103. Employees with a time-limited employment arrangement with a duration of less than 3 months are defined as short-term and casual employees while employees with a time-limited employment arrangement with a duration of at least 3 months are defined as fixed-term employees, as can be seen in flow chart 3. 104. These four steps provide sufficient information to classify employees as respectively permanent employees, fixed-term employees, short-term and casual employees and paid apprentices, trainees, interns according to flowchart 3. 21 Flowchart 3. For 3rd level outcome of the sub-classification module for employees 3.5 Classification module for self-identified contributing family workers 105. This module would be relevant for countries having a significant share of contributing family workers. For countries where this is not the situation contributing family workers can be defined on the basis of the self- identified status in employment question. The module establish boundaries between contributing family workers and employees as well as between contributing family workers and independent workers and dependent contractors. The boundary between employees and contributing family workers is established with the key characteristic of forms of remuneration while the boundary between contributing family workers and independent workers and dependent contractors is established by the key characteristic of decision making. 106. The first step should include a question(s) that as a minimum verifies that they do not receive wage or salary (see Annex 1.5.1 for examples). 107. A key characteristic for contributing family workers is that they are not paid a wage or salary for time worked. If a self-identified contributing family worker does receive wage or salary for time worked then the respondent is defined as an employee (see flowchart 4). Employee Guaranteed minimum amount of contractual/agreed hours Time-limited or open-ended agreement Duration of agreement/contract Duration > 3 months Time-limited Open ended and guaranteed amount of hours Open ended and no guaranteed amount of hours Duration <= 3 months Short-term and casual employees Permanent employees Fixed-term employees Reasons for temporary employment Self indentified employment status Other than paid apprentices, trainees, interns Paid apprentices, trainees, interns Paid apprentices etc. Paid apprentices, trainees, interns Other reasons 24 3.7 Overall structure 113. The structure of the self-identification module and the different classification modules that identifies the 2nd level categories: employers, independent workers without employees, dependent contractors, contributing family workers, employees and the 3rd level categories: employers in corporations, employers in household market enterprise, owner-operators of corporation without employees and own- account workers in household market enterprise can be seen in the following flowchart. Flowchart 5 for self-identification module and classifications modules Self indentified employment status Having employees Self-employed Incorporation /Unincorporation Incorporated and > 0 employees Employers in corporations Incorporated and = 0 employees Unincorporated and > 0 employees Employers in household market enterprises Owner-operators of corporation without employees Employers Unincorporated Own-account workers in household market enterprises Independent workers without employees Dependent contractors Contributing family worker Employee Type of renumeration Employment relationship OP1. “Employer” responsible for deduction of tax or contributions to national insurances OP2. Actual payment to social insurance or place of work on employer’s premises Employees Type of remuneration Module for self- identified self-employed Module for self- identified family worker Module for self- identified employee Decision making Contributing family workers Recieves wage or salary Do not usually make important decisions Do usually makes important decisions No Yes (Paid trainee) Do not receive wage or salary and do not only receive tips Recieves Wage/Salary Only recieves tips Yes No Is operationally and/or economically dependent on another economic unit that exercise control over his/hers activities 25 The structure of the sub-classification module for employees that identifies the 3rd level sub-categories permanent employees, fixed-term employees, short-term and casual employees and paid apprentices, trainees and interns can be seen in the following flowchart. Flowchart 6 for sub-classification module for employees. Employee Guaranteed minimum amount of contractual/agreed hours Time-limited or open-ended agreement Duration of agreement/contract Duration > 3 months Time-limited Open ended and guaranteed amount of hours Open ended and no guaranteed amount of hours Duration < = 3 months Short-term and casual employees Permanent employees Fixed-term employees Reasons for temporary employment Self indentified employment status Other than paid apprentices, trainees, interns Paid apprentices, trainees, interns Paid apprentices etc. Paid apprentices, trainees and interns Other reasons 26 4 Approach for collecting ICSE-18 using administrative sources 114. The Classification of Status in Employment according to type of economic risk (ICSE-18-R) is a conceptual framework that is more closely related to economic statistics (e.g. SNA) and business statistics than the structure based on type of authority. This classification can therefore be used as a bridge between economic/business statistics and labour market statistics, where relevant labour markets statistics can be fed into e.g. SNA. 115. Economic risk operationalized by remuneration, is information that can be accessible in administrative sources, which makes the hierarchy based on economic risk more aligned with the possibilities and restrictions that are inherent in the use of administrative data for deriving status in employment. It would also typically be possible to create an administrative based socio-economic classification that uses the structure of the hierarchy according to type of economic risk as a starting point and that takes the specific possibilities and limitations within the countries administrative sources in to account. This would enrich the possibilities of carrying out register based labour market analysis in general. Both ICSE-18-R and ICSE-18-A can be created if all 3rd level categories can be defined and collected within a source or by combining sources. This would typically not be possible when using administrative sources 116. ICSE-18-R creates a dichotomy between workers employed for profit and workers employed for pay. The two 1st level categories consists of five 2nd level categories and ten 3rd level categories as follows: Box 2. Classification of Status in Employment according to type of economic risk (ISCE-18-R) Workers in employment for profit: F. Independent workers in household market enterprises 12 – Employers in household market enterprises 22 – Own-account workers in household market enterprises without employees C. Dependent contractors 30 – Dependent contractors E. Contributing family workers 51 – Contributing family workers Workers in employment for pay: G. Owner-operators of corporations 11 – Employers in corporations 21 – Owner-operators of corporations without employees D. Employees 41 – Permanent employees 42 – Fixed-term employees 43 – Short-term and casual employees 44 – Paid apprentices, trainees and interns 29 5 Approach for collecting ICSE-18 using establishment surveys 129. Establishment surveys also provide an alternative method for providing information about the various aspects of the labour market, including statistics on employment and wages at a point in time. Although most of a country’s total employed population may be covered by the enterprises included in the establishment surveys, in many countries such coverage may be insufficient. Establishment surveys generally tend to a) cover only enterprise above a certain size, or enterprise which are registered under the national legislation of a country; and b) cover only employees in these enterprise. Users need to be aware of sample design and coverage issues related to establishment surveys to help in interpreting the statistical outputs. For example, establishment surveys exclude households as employers, and national enterprises operating abroad. A few also exclude unincorporated enterprises and public sector institutions. 130. Establishment survey statistics are collected via a sample survey, which means data are collected from a selection of enterprises instead of all enterprises in a country. Depending on the sample design and coverage of the establishment survey in question, this influences what ICSE-18 categories can be measured. At the aggregate level, employment related information is usually an important output, as a consequence, establishment surveys tend to cover mainly the total payments made to employees (or the total wage bill) during the relevant reference period, as well as the total number of paid employees at a particular reference period. 131. Using a two-stage sample selection methodology, establishment surveys would allow either the ICSE-18 2nd or 3rd level category to be measured at the detailed level by adding the various classification of interest directly to the survey questionnaire and expanding the scope of the sample design as required (for example, including enterprises without employees). Using this method, information is collected from a sample of employers about characteristics of both the employers and their employees. This information will provide comprehensive statistics for various groups of employees. For example, can determine whether the enterprise is incorporated or not for the employer and independent workers without employees categories, by asking a specific question on the employer form type relating to if the enterprise is incorporated or not on the survey questionnaire. If the enterprise is incorporated then the employers and independent workers without employees would be classified as employers in corporations and owner operators of corporations without employees respectively. A question relating to if the employee is employed on a permanent, or fixed term, or short term or on a paid apprentices, trainees and interns basis can also be asked for analysis purposes using the second-stage sample methodology. 6 Data sources 132. The data collection of ICSE-18 can be carried out using different statistical sources. All sources that are used to collect data regarding employment are also potential sources when collecting the more detailed information on status in employment. Different statistical sources have their advantages as well as disadvantages and can be seen as complementary to each other. The inclusion or not of status in employment should be based on the national need to collect the information in that specific statistical source and the possibilities and limitations that are embedded in the statistical source in question. 133. Household-based surveys are an important source of labour market statistics. In particular, the Labour force survey is commonly used to measure employment. The advantage of the LFS is that it covers a lot of different aspects of the labour market in depth. The LFS therefore becomes a natural vehicle for measuring status in employment. The measurement of employment can also be part of general or multi-purpose household surveys, as well as specialized household surveys such as those concerned with living standards, household income and expenditure, household budget, time-use, education and training and child labour. If the measurement of employment is included in a general or a more specialised household survey, then it would be relevant to include status in employment as an explanatory variable. 30 134. In a source like the LFS that focuses on employment, a high degree of detail regarding status in employment is necessary, which would require the measurement of both the 2nd and 3rd level categories. However, in a survey where employment more has the characteristic of being an explanatory variable it could be sufficient to only collect the 2nd level categories or even less information (for example 2nd level categories but excluding dependent contractors). 135. The population census can also be an important source for measuring employment. If employment is measured within a census then status in employment would also be relevant. The advantage with a population census is that it makes it possible to produce estimates for small geographic areas as well as for small groups. A short question or module that collects the same concept but with less detail and less precision may be an appropriate solution in a population census. 136. Establishment surveys aim at covering the number and characteristics of the economic units. Employment is usually an important aspect covered by establishment surveys. However, establishment surveys do typically focus on employees and any further sub-categories of employees is unusual. 137. Administrative records, developed for statistical purposes, might also be an important input for the production of employment figures. The administrative records could for example be based on tax systems, employment services, pension schemes or social security registers. If a country is using administrative records in order to produce employment figures then it would be relevant to also define status in employment. The possibilities to do so would depend on the structure and content of the country specific administrative sources. 6.1 Labour force survey 138. Labour Force Surveys are in many countries the main source of labour market statistics for describing and monitoring the labour market. LFS covers a lot of different topics related to the labour market such as different forms of work, characteristics of the job, labour underutilization, characteristics of people outside the labour force to mention a few. Status in employment is essential in this context both as important information in itself but also as an explanatory variable. 6.1.1 Current practice 139. The 15th ICLS resolution concerning the International Classification of Status in Employment (ICSE-93) is typically collected in a straight forward way by simply asking one or two questions that capture the status in employment. The questions and categories used by countries are usually very closely linked to four out of the six different status in employment categories as specified in ICSE-93. The exact wording of the question(s) and the categories differ but the structure is mainly the same. Some countries do also add specific categories of national interest. An overview over the collection of ICSE-93 shows that out of 136 countries 80 countries use a question that has categories directly linked to ICSE-93. An additional 17 countries uses categories that are similar to the categories in ICSE-93 or/and have added categories of national interest.4 140. The initial question typically includes the categories employee, unpaid family worker or contributing family worker, self-employed or employer and own account worker. Few countries have also included members of producers’ cooperatives or/and a category other which are the final two categories in ICSE-93. 141. Those countries that have the category self-employed in the initial question (and do not separate directly between employer/own account worker) typically have a second following up question in order to categorize the self-employed as either being employers or own account workers. 142. This type of structure can be exemplified by the following archetypical questions5: 4 Eberlein Friederike, Country Practices database 20-09-2016 5 Eberlein Friederike, Country Practices database 20-09-2016 31 A) The case when one question is deemed sufficient: Do you work as? – Employee – Employer – Own-account worker – Unpaid family worker B) The case when two questions are used: Do you work as? – Employee – Self-employed – Unpaid family worker (If self-employed): Do you have employees? – Yes – No 143. Both examples are sufficient to identify the employed persons as respectively employees, employers, own- account workers and contributing family workers according to ICSE-93. However, the approach builds on the assumption that the respondents and the interviewers have a clear understanding of the different concepts, for example between employers and own-account workers. In many cases this will also be the situation however, there will always be cases on the borderline that are in risk of being misclassified due to that the respondents understanding of the concepts do not reflect the statistical definitions. Without validation questions this could lead to a misclassification. 144. There are some deviations from the approach of using one or two self-identification questions. Some countries uses questions such as ownership or whether the respondent works for someone else. However, the structure described above is clearly the dominating structure. 6.1.2 Other national categories of interest. 145. Some countries have included additional national categories that are of policy interest for the country. One such category that is relatively common is Apprentices, trainees, interns. This is a category of high policy interest and the importance of the group is recognised by ICSE-18 where paid apprentices, trainees, interns is a sub-category of employees. Domestic worker is another example of a relatively frequently used category that is of high policy interests. 6.2 Current practice in relation to the ICSE-18 146. The LFS is well suited to collect status in employment and the proposed measurement approach for household surveys would fit well into the structure of the LFS. The approach is built around a self- identification module, which for most countries is the current approach to identify the ICSE-93 status. It would therefore be relatively easy to integrate the approach in most LFS´s. The different modules would in an LFS typically target the main job but could also be used in relation to secondary jobs. The level of detail collected regarding secondary jobs would dependent on the national needs. However, the classification modules would to some extent be required also for secondary jobs to allow a correct identification of the status in employment in secondary jobs. 147. The implementation of the classification and sub-classification modules would all in all increase respondent burden. However, the questions are highly relevant from a LFS perspective and would fit well into the LFS framework. The information needed for defining the ICSE-18 categories is also relevant labour market 34 6.3.2 Census 162. Introduction of new questions in a census creates a relatively large increase in respondent burden. Taking this into account it might be sufficient to only include the Self-identified status in employment module and by that include one single question similar to the examples in Annex 1.1 in order to minimize the respondent burden. This approach would allow the identification of employers, independent workers without employees, employees and contributing family workers based on the respondent’s self-assessment. This would create less precision compared to when the classification modules are used but it could be sufficient for the purpose of the census. As described earlier dependent contractors would not be measured however, the effect of this could be estimated in a source that does include the classification modules. If more detailed information is required, then the 2nd level categories could be collected using a minimum number of questions. 6.3.3 Establishment surveys 163. Establishment surveys such as structural earnings surveys or labour cost surveys do include the measurement of employment6 with a focus on the number of jobs. Some specific statuses in employment are relevant, for example to quantify the aggregated number of employees by industry in the establishment. The information can be used to monitor employment and earnings trends and to assist in developing and reviewing earnings and labour market policies. 164. Establishment surveys are characterised by the information typically being collected from a person representing the economic unit. This method is reflected in the design of the questionnaire. The advantage with this method is that the person representing the economic unit is well positioned to answer technical questions regarding the employees of the economic unit. The disadvantage is that the inclusion of extra questions regarding the employees carries additional respondent burden for the economic unit. To ensure respondent burden is kept to a minimum, most, establishment based survey questionnaires have few questions when compared to household surveys. 165. The scope of establishment surveys is also a factor that impacts on the possibilities of measuring the ICSE- 18 categories. It is a common practice to delimit the sample by only including establishments above a certain size, defined in terms of number of employees.7 Such a threshold would not allow the measurement of establishments without employees. Different approaches are taken, however, in surveys targeting informal sector establishments. 166. The measurement approach as described for the LFS and other household surveys would not be feasible in establishment surveys due to the differences in methods and survey design. Instead it would be necessary to include the possibility for the classification directly in the questionnaire. 6.3.4 Administrative sources 167. Administrative sources based on e.g. tax systems, employment services, pension schemes and social security administration are used in some countries to measure employment. An advantage with administrative sources is that they enable reliable breakdowns at a detailed level, which might be of great use for monitoring and analysing the labour market. At the same time administrative sources are typically not created for deriving labour market statistics but for administrative purposes. It might therefore be a challenge to transform the administrative sources to meet the international standards. 168. The possibility to create the ICSE-18 categories based on administrative sources would very much depend on the possibilities within the specific administrative sources in a given country. In most cases it would be necessary to combine several administrative sources in order to create coherent data that could be used to derive the different statuses in employment. It might also be necessary to deviate from the definitions in 6 Wieser Christina, 2011, Establishment Surveys That Measure Employment and Wages, 2011 ILO Survey of Country Practices 7 Wieser Christina, 2011, Establishment Surveys That Measure Employment and Wages, 2011 ILO Survey of Country Practices 35 ICSE-18. In these cases it would be important to be transparent with any deviations and to estimate their impact. 169. When using administrative sources there would be some limitations on the possibilities of deriving status in employment. It would typically not be possible to create a boundary between dependent contractors and own-account workers in household market enterprises. Dependent contractors would instead be within the category of own-account workers in household market enterprises due to similarities in key characteristics. The impact of this would differ depending on which hierarchy is used. In the hierarchy based on economic risk the 1st level categories of workers in employment for profit and workers in employment for pay would not be affected. Dependent contractors as well as own-account workers in household market enterprises without employees are both employed for profit. 170. In the classification of Status in Employment according to type of authority the problem with identifying dependent contractors in administrative sources would have an impact on the 1st level categories of independent workers and dependent workers. Own-account workers in household market enterprises without employees are defined as independent workers while dependent contractors are defined as dependent workers. It would therefore be problematic to create the exact dichotomy between independent workers and dependent workers based on administrative sources. 171. Contributing family workers can typically not be measured based on administrative sources, which would have an impact on the 1st level aggregates in both hierarchies. However, when comparing with e.g. household surveys that include contributing family workers, the category can be separately identified within the household survey and taken in to account when explaining differences in levels. 172. The sub-categories of employees would typically not be possible when using administrative sources because the sub-categories are based on contractual characteristics. The types of characteristics, (open- ended /time-limited contract, duration of contract and guaranteed amount of hours) would typically not be available information within administrative sources. 36 7 Collecting the cross-cutting variables 173. ICSE-18 are complemented by a set of cross-cutting variables to provide more detailed information on the characteristics of the work-relationship regarding e.g. stability, permanence and economic risk. The cross- cutting variables can be combined with different statuses in employment to construct relevant outputs on a national as well as an international level and by that providing a better understanding of the labour market. The definitions of the different cross-cutting variables as well as definitions of the output categories and explanatory notes referring to the variables and output categories, can be found in the Conceptual framework for statistics on work relationships. (ILO, 2018d). Box 3. Cross-cutting variables (a) Required for ICSE-18:  Duration of work agreement  Type of employment agreement  Contractual hours of work  Forms of remuneration (b) Essential for statistics on work relationships:  Duration of employment in the current economic unit  Usual hours worked  Full-time/part-time status  Reason for non-permanence of job  Preference or not for a non-permanent job  Seasonal workers  Place of work  Domestic workers  Home-based workers  Multi-party work relationships  Job-dependent social protection coverage  Paid annual leave  Paid sick leave (c) Recommended:  Number of employees in the economic unit in which the worker is employed;  Main form of remuneration.  Reasons for preferring a non-permanent job Source: ILO, 2018d 174. There are three different types of cross-cutting variables: required, essential and recommended. The required cross-cutting variables provides information regarding the work relationship that is relevant information for analytical outputs as well as for measuring some of the key-characteristics needed for defining status in employment. The dual purpose of each variable, implies that the scope of the variables are broader than the strict need to measure a given key characteristic. For example, dependent contractors have the key-characteristic that they do not receive a wage or salary. For the purpose of identifying dependent contractors it would be enough to just establish the key characteristic of whether the self- identified employee receives a wage/salary or not, however, the cross-cutting variable forms of 39 191. Duration of employment in the current economic unit (Essential): the duration can be calculated as time elapsed since the respondent started working for a particular enterprise or started the business to the end of reference period or the date of the interview. (See Annex2 2.2 for examples). Alternatively the duration can be asked directly. 192. Number of employees in the enterprise in which the worker is employed (Recommended): the information can be collected with one single question. (See Annex2 2.3 for examples). 7.1.3 Cluster 3: Remuneration 193. The cluster refers to remuneration. The variables target all employed persons. Forms of remuneration is a required variable for creating the boundary between employees and dependent contractors.  Forms of remuneration (Required)  Main form of remuneration (Recommended) 194. Forms of remuneration (Required): is part of the classification module for employees. For non-employees it can either be measured by expanding the filter for the question in the classification module for employees or by adding an additional question targeting non-employees. (See Annex1 1.3.1 for examples) 195. Main form of remuneration (Recommended): the information can be provided using a single question following the question measuring forms of remuneration (See Annex2 2.4 for examples). 7.1.4 Cluster 4: Working hours 196. The cluster includes the cross-cutting variables relating to working hours that with the exception of contractual hours target all employed. Contractual hours would mainly be relevant for employees.  Contractual hours of work  Hours usually worked  Full-time/part-time status The measurement of working time in a household survey is complex. It requires respondent friendly questions that takes absences, overtime, public holidays etc. into account while ensuring that the international standards as defined in the 18th ICLS resolution concerning the measurement of working time (ILO, 2013) are met. Typically, a sequence of questions needs to be asked which is outside the scope of these guidelines. ILO has undertaken a programme of pilot studies which, among other topics, assessed the impact of different approaches to the measurement of working time in employment. A report has been published which presents the findings and related recommendations, and model questionnaires and related tools are being developed based on these findings. (See Measuring Working time and Time-related underemployment in Labour Force Surveys: Main findings from the ILO LFS pilot studies, ILO, 2018e) 7.1.5 Cluster 5 Interlinks 197. The cluster includes variables that provide information regarding the relationship between the worker, the economic unit for which the work is performed and the client(s). The variables target all employed persons.  Type of workplace (Essential)  Home-based workers (Essential)  Multiparty relationships (Essential)  Domestic workers (Essential) 198. Type of workplace (Required): provides information about the type of location where the work is usually performed. The information can also be used as input to derive information regarding home-based workers, domestic workers and be useful for the identification of multiparty relationships. It is a required variable for the identification of dependent contractors among self-perceived employees in countries using payment of social insurance combined with place of work as operationalization and would then be part of the 40 classification module for employees. The information can be collected by using one question (See Annex1 1.3.2.2.b for examples). 199. Home-based workers (Essential): the variable can be derived from type of workplace and includes all employed persons working in their own home. The variable does not require any additional questions. 200. Multi-party work relationships (Essential): there is a strong need to further explore how to measure multi- party work relationships in household surveys. Some data collection guidelines based on country practices can be provided for multiparty relationships among employees however, further testing are needed to identify best practices. 201. Multiparty relationships among employees include: a) Labour hire employees: (labour broker, labour hire agencies, temporary employment agencies) to carry out short term work at the clients business/homes. This type of multiparty relationship could be identified by a direct question asking about whether the employee are hired by an employment agency, or by adding categories to type of employment agreement. (See Annex2 2.5.1 for examples). b) Employees providing outsourced services: (nursing agencies, domestic or office cleaning, security service providers) to carry out long term work at the clients business/homes. This type of multiparty relationship could be identified by a direct question using expressions for service provision agencies (See Annex2 2.5.2 for examples). Another approach for collecting information regarding groups a) and b) would be to identify these types of multiparty relationship using a single question that establish the source of the remuneration. If the payment to the employee is made by a temporary agency or a service provision agency then the employee can be defined as having a multiparty relationship. (See Annex2 2.5.3 for examples). This would require that the terms used in the question are understood by the broad population. c) Employees that participate in employment promotion programmes (partly) financed by government agencies. This group can be identified using reasons for non-permanence of the job. Employees that states the reason “employment promotion program” would be coded as being in a multiparty relationship. The variable type of workplace can be used to reduce the respondent burden. Employees working at the employer’s workplace or site do not have a multiparty relationship and would thereby not require any further questions. 202. Domestic workers (Essential): the variable targets all employed persons. Two different approaches can be applied to collect this information. a) Direct question approach: the information is collected by including a set of questions targeting those where the place of work is employers/clients home. The aim with the question is to establish whether the person is either an employee of the household providing services to the household or is providing domestic services for a household in some other type of work relationship (See Annex2 2.6). The impact of using direct questions needs to be further tested and explored. b) Industry based approach: domestic workers are identified by deriving the information from the industry, occupation and type of workplace. Domestic employees may be identified in statistical collections when the economic activity of their employer is equivalent to ISIC Rev.4 Division 97, “activities of households as employers of domestic personnel”8. Other domestic workers can be 8 In most countries data on employment classified at 1-digit level to ISIC Rev 4. Section T, or to its equivalent in ISIC revisions 3 and 3.1, Section P, will be sufficient to uniquely identify domestic employees. 41 identified based on occupation and place of work. Domestic workers employed by agencies are identified by a combination of industry, place of work and occupation. The occupations used for the measurement of domestic workers not employed directly by households should be those commonly held by domestic employees, identified on the basis of empirical analysis of occupation data on domestic employees in the national context. Since in many countries it is likely that the numbers of domestic workers with these arrangements will be very small, it may be necessary to undertake such analysis periodically. 203. Independently of the method used for identifying domestic workers the information once collected/derived can be combined with information regarding multi-party relationship, status in employment and place of residence in order to derive the different sub-categories of domestic workers. See table 3. Table 3: Sub-categories of domestic workers. 7.1.6 Cluster 6 Social protection 204. The cluster relates to the social protection of the worker and the degree of economic risk to which they are exposed in case of absence from work. The variables might be relevant when measuring informal employment among employees and for creating a boundary between employees and dependent contractors when using job-dependent social protection and place of work as operationalization.  Job-dependent social protection (Essential)  Access to paid annual leave (Essential)  Access to paid sick leave (Essential) 205. Job-dependent social protection (Essential): the variable targets employees but can be extended to other statuses in employment depending on the national context. The information can be provided by using one single question. (See Annex1 1.3.2.2 for examples). It is essential to adjust the question to national contexts and that it should refer to a specific social insurance scheme e.g. contribution to pension fund, unemployment insurance, health insurance or occupational injury insurance. The exact choice will depend on national context and labour laws/rights. 206. Access to paid annual leave (Essential): the variable can be collected with one single question that targets employees. The question can be sequenced in relation to job-dependent social protection but can also be placed separately. The formulation of the question should reflect that it is not sufficient to have a legal right to paid annual leave if the worker does not have access in practice. The right to compensation of unused leave can be regarded as having access to paid annual leave depending on national context. (See Annex2, 2.7 for examples). The number of paid days is not relevant for the cross-cutting variable but can be collected as secondary information if needed. 207. Access to paid sick leave (Essential): the variable can be collected with one single question that targets employees. The question can be sequenced in relation to access to paid annual leave. The formulation of the question should reflect that it is not sufficient to have a legal right to paid sick leave if the worker do not have access in practice. (See Annex1. 2.8 for examples). The number of paid sick days is not relevant for the cross-cutting variable but can be collected as secondary information if needed. Status in employment Multiparty relationship Place of residence Domestic work category Same as employer Live-in domestic employees Other than employer Live-out domestic employees Yes NA Domestic workers employed by service providers Non-employee NA NA Domestic Service providers non-employees Employee No 44 8 Bibliography Abraham, Katharine, Haltiwanger John, Sandusky Kristin, Spletzer Jamesl. 2017. Measuring the Gig Economy: Current Knowledge and Open Issues. https://aysps.gsu.edu/files/2016/09/Measuring-the-Gig- Economy-Current-Knowledge-and-Open-Issues.pdf. Bonin, H. and U. Rinne .2017. Omnibusbefragung zur Verbesserung der Datenlage neuer Beschäftigungsformen Kurzexpertise im Auftrag des Bundesministeriums für Arbeit und Soziales. Germany http://legacy.iza.org/en/webcontent/publications/reports/report_pdfs/iza_report_80.pdf. International Labour Organization (ILO). 1982. 13´th ICLS, Resolution concerning statistics of the economically active population, employment, unemployment and underemployment. Geneva -. 1993. 15th ICLS resolution concerning the International Classification of Status in Employment (ICSE-93). Geneva -. 1994. Convention 175 Part-time Work Convention. Geneva -.2008. 18th ICLS, Resolution concerning the measurement of working time. Geneva -. Weiser Christina. 2011. Establishment Surveys That Measures Employment and Wages, 2011 ILO Survey of Country Practices. Geneva -.2013. 19th ICLS resolution concerning statistics of work, employment and labour underutilization, Geneva -.2016. Pilot test, Model Questionnaire 4, Wave 1, Section: Characteristics of main job, Version B. Geneva -.2016. Pilot test, Wave 2, Model Questionnaire 4, Section: Characteristics of main job, Version B. Geneva -.2016. Pilot test, Wave 2, Model questionnaire 5 Section: Characteristics of main job (Version B). Geneva -.2018a. Appendix 20th International Conference of Labour Statisticians resolution concerning statistics on work relationship, Revised draft report at 20 July 2018 in Report II Statistics on work relationships. Geneva. https://www.ilo.org/stat/Publications/WCMS_636041/lang--en/index.htm -.2018b. Room document 10 - Testing of proposals for a revised International Classification of Status in Employment, presented at the 20th ICLS, Geneva. https://www.ilo.org/stat/Publications/WCMS_636046/lang--en/index.htm -.2018c. Measuring contributing family work in labour force surveys: Main findings from the ILO LFS pilot studies, (Forthcoming) https://www.ilo.org/stat/Areasofwork/Standards/lfs/WCMS_627815/lang--en/index.htm -.2018d. Room document 5 - Conceptual framework for statistics on work relationships. Geneva: https://www.ilo.org/global/statistics-and-databases/meetings-and-events/international-conference-of- labour-statisticians/20/lang--en/index.htm -.2018e. Measuring Working time and Time-related underemployment in Labour Force Surveys: Main findings from the ILO LFS pilot studies, ILO, Geneva http://www.ilo.org/stat/Areasofwork/Standards/lfs/WCMS_627815/lang--en/index.htm 45 Instituto Brasileiro de Geografia e Estatística. 2016. Labour Force Survey, Monthly Labour Force Survey Questionnaire. Brasil Leslie Kirsty. 2015a. Discussion paper Proposal for the revision of the International Classification of Status in Employment Dependent contractors. Geneva, 2-4 December 2015 Leslie Kirsty, 2015b. Proposal for the revision of the International Classification of Status in Employment –Owner Managers of Incorporated Enterprises Mexico. 2016. Encuesta Nacional de Ocupación y Empleo. English draft version. Mexico National Statistics Office. 2014. Labour Force Survey. US labour force. USA National Statistical Office of Malawi. 2013. Labour Force Survey 2013. Malawi Office for National Statistics. 2014, Labour Force Survey. User guide Vol 2. Version 4. February 2014. UK Statistics Finland. 2014. Labour Force Survey. Finland Statistiska centralbyrån. 2006. Labour Force Survey. English version. Sweden 46 9 Annex 1 1.1 Self-identified status in employment module Examples of questions that could be used in order to collect the self-identified status in employment Do you work…?9 1) In your own business activity 2) In a business operated by a household or family member 3) As an employee for someone else 4) As an apprentice, trainee, intern 5) Additional categories of specific interests Comment: The wording creates a question that is slightly more objective compared to other versions. Do you work as an: 1) Employee 2) Self Employed 3) Unpaid family Worker 4) Paid apprentice, intern 5) Additional categories of specific interests Comment: The question can be viewed as an example that contains a minimum set of answer modalities with the addition of Paid apprentice, intern which would only be relevant if a sub-categorisation of employees is carried out. Do you work in your own business? 1) Yes 2) No (If no) Do you work as an employee for someone else? 1) Yes 2) No (If no) Do you work as a family worker? 1) Yes 2) No (If no) Do you work as a paid apprentice, intern? 1) Yes 2) No 9 Based on; ILO, Model questionnaire CAPI: Main job part 1 49 1.2.2 Key characteristic: Incorporated/unincorporated Examples of questions that identifies whether the enterprise is incorporated or not. Incorporation is a legal status and hence depends on the legal framework in the country. It is therefore essential that the question is adapted to the national context. This question as all questions in this module is only asked to respondents self-identified as self-employed. Is your business/enterprise a limited company, trading partnership, limited partnership?12 1) Yes 2) No Comment: The question should include examples of national expressions/concepts for incorporated enterprises. Is this business incorporated?13 1) Yes 2) No Comment: The question can be used if the term incorporated is widely understood and used in the given country. What is the type of ownership of your business/farm?14 1) Individual owner (or with other household members) 2) Partnership with members of other households 3) Incorporated enterprise (Private Limited Co., Public Limited Co. Inc.) 4) Other (specify) Comment: The different categories allows a measurement of different forms of ownership. The category incorporated enterprise should be exemplified with different national used concepts. It would be essential to test whether respondents understands the differences between the answer modalities. 12 Based on; ILO, Model questionnaire CAPI: Main job part 2 13 Bureau of Labour Statistics, USA, 2014, US labour force 14 Leslie Kirsty, 2015b, Proposal for the revision of the International Classification of Status in Employment –Owner Managers of Incorporated Enterprises, Paragraph 88, examples from Gambia, Uganda, Malawi, 50 1.2.3 Key characteristic: Operational and/or economic dependency on another economic unit 223. The key characteristic aims at creating a boundary between own account workers in household enterprises without employees and dependent contractors by establishing whether the respondent is operational and/or economic dependent on another entity that controls their activities. The questions should be asked to respondents that have identified themselves as being self-employed and do not have an incorporated enterprise and no regular employees. Possible operationalization includes: • Control over setting the price for goods or services produced. • If the client or intermediary provides the material input (raw materials, capital items or clients). • Exercise of operational authority over the work by one single separate entity In addition to the above alternatives sharing profit with a third party have also been discussed and tested. Findings suggest that this is a highly problematic operationalization due to its complexity and that respondents have severe difficulties answering question relating to this operationalization. A number of countries have been testing the operationalization of the boundary between own account workers in household enterprises without employees and dependent contractors. The results from these tests can be viewed in Room document 10 - Testing of proposals for a revised International Classification of Status in Employment (ILO, 2018b). 1.2.3.1 Option: Control over setting the price for goods or services produced Independent workers are characterised by having the authority to organise their own work and to have some extent of bargain power to price their goods and services. However, if the prices for their goods or services are set by the client(s) or a third party then this would indicate economic dependency due to a lack of authority to impact the price setting. Q1) Can you primarily price the products or services you offer yourself? 1) Yes 2) No If Q1=2 Q2) Why can you not price them yourself? Is it because.. 1) Another enterprise, client or agent defines the prices? 2) Prices are typically determined by the customer? 3) Prices are defined by law? 4) Prices are negotiated with the customer? 5) The prices are set to a market price 6) Other Comment: Respondent that perceives that they do have some flexibility to influence their prices but have to take the market price in consideration should either be coded 1 in question 1 or 5 in question 2 and would then not be considered dependent contractors. Answering 1 or 2 in Q2 would indicate restricted access to market, due to the limited possibilities for the person to control the price setting. 51 1.2.3.2 Option: One single client To have one single (dominant) client is not a sufficient criteria in order to define a limited access to the market. However, this option in combination with other dimensions (for example operational authority over the work could be an option for identifying dependency. The information regarding the number of clients might also be an important information to provide a context for the different operationalization. Q1) How many clients have you had during the last year? 1) No one 2) 1 3) 2-9 4) 10-100 5) 100+ Q1=3-5 Q2) Did at least 75 % of your revenue in the last 12 months come from one client? 1) Yes 2) No 3) I do not know Comment: Similar questions was included in the European Ad hoc module 2017. The questions are in the European Ad hoc module 2017 combined with exercise of operational authority over work to establish restrictions in the decision making. This question can also be combined with other options in order to create a context that can be used for the assessment of a given option. 54 be valuable input for an assessment of how the different options relate to each other. When using a multi question option it would be necessary to establish a context that clarifies the relationship between the respondents business, his/her clients and the users of the products. (Intro text e.g. -Now we are going to ask you some questions regarding your business.) Q1. How many clients have you had in your current business during the last 12 months? 1) No one 2) 1 3) 2-9 4) 10-100 5) 100+ Comment: The question is used to create a context. Q2) Are your clients mainly private consumers or other companies/ agencies? 1) Private consumers 2) Other companies or public organizations 3) Other Comment: The question is used to create a context and will contribute to establish the relationship between the respondent and his/her clients, once the information is combined with the other questions Q3) Who pays you for your products/services? Are you.. 1) Paid by your client(s) 2) Paid by another company, agency 3) Other Comment: The multi option question together with Q3 could be used in order to assess the different options for operationalization 1. Q4) Who typically... 2. You yourself Your client(s) 3. Negotiated between you and your client(s) 4. Another Company or agent 5. Not applicable 6. 7. Decides on your work schedule? Sets the price of your products /services Provides you with the material for your production of your services/products NA 55 1.3 Classification module for self-identified employees 1.3.1 Key characteristic: Remuneration Examples to measure the first key characteristic remuneration. The question do also measure the crosscutting variable forms of remuneration. Are you paid a wage or salary for this work? 1) Yes 2) No If not receiving wage or salary A. Do you receive any other form of payment? (Mark all that apply) If receiving wage or salary B. Do you receive any additional form of payment? (Mark all that apply) 1) Paid by piece 2) Receives commissions or tips 3) Charge a fee for the service 4) Profit 5) Other Comment: The first question is sufficient to identify those that are self-identified employees without wage and salary. The second question includes the categories necessary to derive the cross cutting variable forms of remuneration. For this work are you paid..15 (Mark all that apply) 1) A wage, salary 2) By piece 3) Commissions, tips 4) Fee for services 5) Profit 6) Unpaid 7) Other Comment: The question is an example of a single question capturing the different forms of payment. The categories can be adjusted in order to fit the national context and needs as long as the categories in the crosscutting variable forms of remuneration can be derived. 15 Based on the categories that are identified in the cross cutting variable type of remuneration 56 1.3.2.1 Key characteristic: Option 1 Responsibility for insurance and/or income taxes Examples to measure the second key characteristic responsibility for insurances and income taxes. These questions have to be adjusted to the national context and labour laws. The aim with the question is not to determine whether deductions are actually made as part of establishing informal employment but to distinguish whether the relationship can be defined as an employment relationship or a commercial relationship. Is your employer responsible for contributing to your [name relevant social insurance e.g. pension fund, health insurance]? 1) Employer is responsible 2) I am responsible for that or Is your employer responsible for deducting any taxes on your income or is that your responsibility? 1) Employer is responsible 2) I am responsible for that Comment: The choice of operationalization (question 1 or 2) would depend on national circumstances and would need to be adapted to the national context. Question 1 might be problematic to use when measuring informal employment. Question 2 might be sensitive to ask depending on national context. Is your employer responsible for deducting (income tax) from your salary or wage? 1) Yes my employer is responsible for that 2) No, I am (or name) responsible for that 3) No, I earn less than XXX per YY If No, I earn less than XXX per YY If your income would exceed XXX would it then be your employer’s responsibility to deduct the (income tax) from your salary or wage? 1) Yes my employer would be responsible for that 2) No, I (or name) would be responsible for that Comment: The above example would only be relevant in countries where there is a threshold for when a person is obliged to pay income text. However, the respondent friendliness of this setup would need to be carefully tested. Are you responsible for paying your own National Insurance and Tax or is this a responsibility of the organization(s) you work(s) for, for example, your client, employer, agency etc.?16 1) Responsible for paying your own National Insurance and Tax 2) Responsible for paying your own National Insurance or Tax but not both 3) -National Insurance and tax deducted are a responsibility of the organization(s) you work for example, your client, employer, agency, etc. 16 Based on; Office for National Statistics,2014, UK, Labour Force Survey, User Guide Vol 2, Version 4, February 2014 59 Comment: The question integrates zero-hours contract with other forms of working time arrangements. The other categories can be adjusted to national need and context. There is a risk of a confusion between the two categories on-call working and zero-hours contract. It also assumes that the concept of zero-hours contract is widely used and understood in the country. Does your contract or agreement specify a minimum amount of hours that you are supposed to work? 1) Yes 2) No, contacted when needed/contact when you want to work 3) No, it specifies the completion of a task or tasks 4) None of the above Comment: The question avoids the term zero hours contract and instead uses the terms called when needed/call when you want to work. It needs to be cognitively tested if this captures the concept of zero hour’s contract. The question do also include the category No, it specifies the completion of a task or tasks in order to avoid that respondents that have the type of agreement “working until task is finished” uses the second category. 1.4.3 Key characteristic: Time-limited employment arrangement Examples of questions measuring whether the contract or agreement have a fixed date or is an open ended contract/agreement. The question also partly captures the cross-cutting variable duration of work contract. Is your contract or agreement of20: 1) Limited duration 2) Unlimited duration Comment: The question capture the aspects that a job relation can both be in the form of a contract but also have the less formalised form of an agreement. The respondents understanding of the categories limited/unlimited duration should be cognitively tested. Do you have a fixed-term working contract/agreement?21 (An apprenticeship or training contract is considered as a fixed-term contract.) 1) Yes, fixed-term contract 2) No, open-ended contract Comment: The terms fixed-term and open-ended is used instead of limited and unlimited. The advantages of using one set of categories before another should be cognitively tested. The question do also include a supporting text that targets paid apprentices, trainees and interns to ensure that they are defined as having a non-permanent job. This might be important especially if the category is not included in the self-perceived status in employment question. Is your contract/agreement…22 1) Of limited time duration 2) Permanent or without limit of time 3) For the completion of a task or tasks 20 Based on; National Statistical Office of Malawi, Malawi, , 2013, Labour Force Survey 2013 21 DESTATIS, Germany, 2013, Labour Force Survey, English version. 22 Based on: ILO, 2016, Wave 2, Model questionnaire 5 Section: Characteristics of main job (Version B) 60 Comment: The question also includes the alternative for the completion of a task or tasks. Which is another approach of targeting a potential problematic group. 1.4.4 Key characteristic: Reason for non-permanence of job Example of questions measuring reason for why the job is non-permanent. The information is part of the identification of Paid apprentices, interns and trainees as well as for providing information on the cross- cutting variable reasons for temporary employment. The question could be followed up with a question that measures whether the temporary employment is voluntarily or not. Are your job temporary/fixed term because...23 1) You are undergoing training/education (apprentice, trainee, research assistant, etc.) 2) It is required before a permanent contract is granted 3) It is seasonal work 4) It is part of an employment creation program 5) It is substitute work 6) It terminates once a specific task(s is finished 7) Other reasons Comment: The question needs to be adjusted to the question regarding whether the contract/agreement is open ended or fixed. The most optimal sequence of the categories and wording/terms used should be adjust to national context. 1.4.5 Key characteristic: Duration of work contract Example of a question that identifies short term contracts/agreement (less than three month) and measures the cross-cutting variable duration of work contract. What is your total duration of your contract or agreement?24 1) Daily contract/agreement 2) Less than one month 3) One to less than three months; 4) Three to less than six months; 5) Six to less than 12 months; 6) 12 to less than 18 months; 7) 18 to less than 24 months; 8) 24 to less than 36 months; 9) three years or more; 10) “without stated limit of time”. Comment: The answer modalities can be alternated if deemed necessary as long as the categories as defined in the cross-cutting variable can be derived. An example of that is category 1 and 2 that overlaps and would be complied. What is your total duration of your contract or agreement? ( if less than a month please mark 0) _____________Month(s) 23 Based on: ILO Model questionnaire Module: MAIN JOB part2, 2017 24 Based on; National Statistical Office of Malawi, Malawi, , 2013, Labour Force Survey 2013 61 Comment: The respondent states the exact number of months which creates the flexibility to create relevant categories after data have been collected. 1.5 Classification module for self-identified contributing family workers 1.5.1 Key characteristic: Type of remuneration Contributing family workers can benefit from intra-household transfers but do per definition not receive a wage or salary for time worked. The question therefore creates a boundary between contributing family workers and employees. The question also measures the cross-cutting variable forms of remuneration For this work are you paid..25 (Mark all that apply) 1) A wage, salary 2) By piece 3) Commissions, tips 4) Fee for services 5) Profit 6) Unpaid 7) Other Comment: The question is an example of a single question capturing different forms of payment. The categories can be adjusted in order to fit the national context and needs as long as the categories in the crosscutting variable forms of remuneration can be derived. 1.5.2 Key characteristic: Decision making The key characteristic sets a boundary between contributing family workers and independent workers/dependent contractors. If a self-identify contributing family worker does make important decisions then the respondent is to be considered as a co-operator of the enterprise and be defined as an employer, independent worker without employees or dependent contractor depending on the other characteristics of the work relationship. Who usually makes decisions about the running of the business? 1) I do that 2) Me together with my family 3) Another family member(s) 4) Another (non-family) person Comment: Answer modalities 1 and 2 defines the respondent as co-operator and the respondent is to be filtered into the classification module of self-identified self-employed. Answering modalities 3 and 4 defines the person as contributing family helper if the respondent do not receive a wage or salary for time worked. 25 Based on the categories that are identified in the cross cutting variable type of remuneration but category unpaid is added 64 2.4 Main form of remuneration The question identifies the main form of remuneration in case the employed person receives multiple forms of remuneration. And which is the main form of payment? 1) A wage, salary 2) By piece 3) Commissions, tips 4) Fee for services 5) Profit 6) Unpaid 7) Other Comment: The question would follow question 1.3.1 forms of remuneration. The answer modalities should be the same as used in the question measuring forms of remuneration. 2.5 Multiparty relationship Examples of questions that measures multiparty relationships among employees. The identification of multiparty relationships needs further testing. 2.5.1 Private employment agencies Aims at identify employees that are hired by employment agencies for short term work. The target group is employees that works on client´s workplace or clients/employers homes. Are you working for a private employment agency? 1) Yes 2) No Comment: The term private employment agency should be adapted to national concepts. 2.5.2 Service provider Aims at identify employees that are hired by service providers for long term work for providing work at clients workplace by using a direct question. The target group is employees that works at client´s workplace or clients/employers homes Are you working for a service provision agency (e.g. nursing agencies, cleaning agency, security providers)? 1) Yes 2) No Comment: The question would target those that work at client´s premises business. The term private employment agency should be adapted to national concepts. The question assumes that respondents are familiar with the term used, in this example the term service provision agency. The examples given in the question should be based on typical types of service provision agencies in the country. 65 2.5.3 Source of remuneration An alternative to 2.5.1 and 2.52 is to establish a multiparty relationship by identifying if the source of the remuneration is an employment agency or a service provider. The target group would be employees that works at client´s workplace or clients/employers homes Were you being paid for that work... 1) By an employment agency 2) By a service provider (e.g. nursing agencies, cleaning agency, security service providers) 3) Directly from the household/business where the work take place 4) Other Comment: The answer categories needs to be adjusted to national context. Additional categories capturing different possible multiparty relationship can be added. 2.6 Domestic workers The identification of domestic workers can be carried out by using different sequences and types of question. The exact measurement needs to take the structure of the specific questionnaire into account. The below example is one approached that can be used. Are you employed by …. 1) The government or a state owned enterprise 2) A farm 3) A private business (non-farm) 4) A household(s) 5) An international organization or a foreign embassy 6) An NGO, non-profit institution, church Comment: The question is used to identify those whose place of work is employers/clients household and that are employed by a household or by a private company. The question is also useful to identify employees with formal jobs. Filter: For persons that work in a household and are employed by the household Is the household (you/NAME) work for operating a business? (E.g. making goods or providing services for sale) 1) Yes 2) No 3) Don’t know Comment: The question aims at ensure that the employee is not working in the employers business. If the person states that the household do not have a business or don´t know if the household have the business then the person can be defined as a domestic employee, providing services for the business. Filter: For persons that work in a household and are employed by the household and where the household operates a business. Is (your/NAME) main work in the household business? 1) Yes 2) No 66 Comment: Creates a boundary between domestic employees and employees in a household enterprises. The employee would be a domestic employee if the main work is not related to the business operated by the household Filter: All persons where place of work is employers/clients home and when the employer is not a private household Do (you/NAME) provide domestic services for the household (e.g. driving, security, cleaning, child care, personal care, cooking, gardening…)? 1) Yes 2) No Comment: The person would be a domestic worker if the person do carry out domestic services in clients households. 2.7 Access to paid annual leave Examples of measuring access to paid annual leave targeting employees Do you get paid annual leave? 1. Yes 2. No Comment: A don´t know category can be included if there is a high share of respondents that are expected to have difficulties answering the question. Filter: Employees answering that they do not get paid annual leave Do you get compensation for unused leave? 1. Yes 2. No Comment: The question can be used to complement the first question in countries where compensation for unused leave would be a relevant part of the cross-cutting variable access to paid annual leave. The filter can also be extended to all employees if relevant. 2.8 Access to paid sick leave Example of measuring access to paid sick leave targeting employees. Would you get paid sick leave in case of illness or injury? 1. Yes 2. No Comment: A don´t know category can be included if there is a high share of respondents that are expected to have difficulties answering the question.