Developing a European Developing a European Socio-economic Classification:Socio-economic Classification:

Why, What and How Why, What and How

www.iser.essex.ac.uk/esecwww.iser.essex.ac.uk/esec

David Rose & Eric HarrisonDavid Rose & Eric HarrisonInstitute for Social and Economic ResearchInstitute for Social and Economic Research

University of EssexUniversity of Essex

QuestionsQuestions

Why do we want or need an ESeC?Why do we want or need an ESeC?

What type of classification is it and what What type of classification is it and what

does it look like?does it look like?

How is it made and added to datasets?How is it made and added to datasets?

Why do we want an ESeC?Why do we want an ESeC?

Eurostat Statistical Harmonisation Eurostat Statistical Harmonisation programmeprogramme

Much ‘comparative’ research just uses Much ‘comparative’ research just uses national statistics from different countriesnational statistics from different countries

Need to create common set of core:Need to create common set of core: unitsunits variables and variables and classifications

ESeCESeC

Expert Group appointed by Eurostat in January Expert Group appointed by Eurostat in January 20002000

Proposals for an ESeC made in 2001 Feasibility Proposals for an ESeC made in 2001 Feasibility Report Report

(available from (available from www.iser.essex.ac.uk/esecwww.iser.essex.ac.uk/esec))

This report forms the basis for the projectThis report forms the basis for the project

Form of classificationForm of classification

Outline classification is two-level ‘nested hierarchy’ (see Outline classification is two-level ‘nested hierarchy’ (see French French PCS)PCS)

Level 1 – nine (ten) classes, reduces to five or threeLevel 1 – nine (ten) classes, reduces to five or three

Level 2 – thirty-five (forty-four) socio-economic groups Level 2 – thirty-five (forty-four) socio-economic groups (SEGs) (SEGs)

This covers the whole population at the individual level.This covers the whole population at the individual level.

Includes all the various ‘other active’ and ‘inactive’ groups. Includes all the various ‘other active’ and ‘inactive’ groups.

What does the ESeC What does the ESeC NOTNOT measure? measure?

SkillSkill

EducationEducation

Status or PrestigeStatus or Prestige

Job ComplexityJob Complexity

What does the ESeC measure?What does the ESeC measure?

Rooted in long traditions within the Rooted in long traditions within the study of social stratification in European study of social stratification in European sociologysociology

Employment relations and conditions Employment relations and conditions are central to delineating the structure are central to delineating the structure of socio-economic positions in modern of socio-economic positions in modern societiessocieties

Classifying the European Labour ForceClassifying the European Labour Force

Basic SEC Positions

EMPLOYERS SELF-EMPLOYEDWORKERS

EMPLOYEES EXCLUDED

Distinguishing among EmployeesDistinguishing among Employees

Over 80 per cent of workforce Over 80 per cent of workforce ‘employees’!‘employees’!

Differentiate them in terms of employment Differentiate them in terms of employment relations:relations:

Do they have a ‘labour contract’ or a Do they have a ‘labour contract’ or a ‘service relationship’? Or a mixture of the ‘service relationship’? Or a mixture of the two? two?

Typical elements of the Typical elements of the Labour ContractLabour Contract

Short-term exchange of money for effortShort-term exchange of money for effort

Payment by the time or piecePayment by the time or piece

No occupational pension or health schemeNo occupational pension or health scheme

Contract easily terminatedContract easily terminated

Low level of job securityLow level of job security

Typical elements of the Typical elements of the Service RelationshipService Relationship

Long-term exchange of service for compensationLong-term exchange of service for compensation Greater job security and employabilityGreater job security and employability SalarySalary Incremental or similar payment systemsIncremental or similar payment systems Occupational pension and health schemesOccupational pension and health schemes Greater control over the job and thus trust Greater control over the job and thus trust

between employer and employeebetween employer and employee

Possible ESeC ‘Classes’ (Level 1)Possible ESeC ‘Classes’ (Level 1)

1.1. Large employers, higher managerial and professional Large employers, higher managerial and professional occupationsoccupations

2.2. Lower managerial and professional occupationsLower managerial and professional occupations3.3. Intermediate occupationsIntermediate occupations4.4. Small employers and own account workersSmall employers and own account workers5.5. Employers and self-employed in agricultureEmployers and self-employed in agriculture6.6. Lower supervisory and lower technician occupationsLower supervisory and lower technician occupations7.7. Lower sales and lower services occupationsLower sales and lower services occupations8.8. Lower technical occupationsLower technical occupations9.9. Routine occupationsRoutine occupations10.10. Never worked and long term unemployedNever worked and long term unemployed

Underlying ESeC ‘Socio-economic Groups’ Underlying ESeC ‘Socio-economic Groups’ (Level 2)(Level 2)

11.11. Employers (other than in agriculture) with 10+ Employers (other than in agriculture) with 10+ employeesemployees

12.12. Farmers with full-time employees (or ‘large business’ Farmers with full-time employees (or ‘large business’ farmers)farmers)

13.13. Higher managerial occupationsHigher managerial occupations14.14. Higher professional occupations (employees)Higher professional occupations (employees)15.15. Self-employed professional occupationsSelf-employed professional occupations

Class 1 Large employers, higher managerial and professional

occupations

FlexibilityFlexibility

One of the advantages of a nested two-level One of the advantages of a nested two-level schema such as this is that it will permit schema such as this is that it will permit analysts to look ‘inside’ classes. analysts to look ‘inside’ classes.

This will assist them in understanding how life-This will assist them in understanding how life-chances may vary between groups with the chances may vary between groups with the same employment relations. same employment relations.

For example, do higher professionals in SEGs For example, do higher professionals in SEGs 14 and 15 have better health outcomes when 14 and 15 have better health outcomes when compared with higher managers in SEG 13?compared with higher managers in SEG 13?

Extra Socio-economic GroupsExtra Socio-economic Groups

Other active groupsOther active groups01 Other unemployed01 Other unemployed

02 Unpaid family workers02 Unpaid family workers03 National service03 National service

Inactive groupsInactive groups04 Retired04 Retired

05 Students (full-time)05 Students (full-time)06 Children06 Children

07 Permanently sick and disabled07 Permanently sick and disabled08 Looking after home08 Looking after home

Not classifiableNot classifiable00 Occupation not given or inadequately described00 Occupation not given or inadequately described

What to do with the leftovers? What to do with the leftovers?

Those in SEGs 01-08 do not automatically Those in SEGs 01-08 do not automatically collapse to any class. Individuals in these collapse to any class. Individuals in these groups are re-allocated to either:groups are re-allocated to either:

a)a) Their ‘career typical’ (usually last ‘main’) job Their ‘career typical’ (usually last ‘main’) job or or

b)b) their household class.their household class.

Household Level RulesHousehold Level Rules

Also possible to re-allocate all SEGs to create a Also possible to re-allocate all SEGs to create a Household version of ESeCHousehold version of ESeC

Achieved through the concept of ‘household Achieved through the concept of ‘household reference person (HRP)reference person (HRP)

Usually a given, i.e. part of survey designUsually a given, i.e. part of survey design But if occupational data on all HH members is But if occupational data on all HH members is

available, use ‘dominance’ rulesavailable, use ‘dominance’ rules

Constructing ESeCConstructing ESeC

In order for an ESeC to be In order for an ESeC to be fully operationalized in line with in line with our theoretical model, at a minimum we require measures our theoretical model, at a minimum we require measures of:of:occupation, occupation, status in employment, status in employment, labour market position andlabour market position and(in some cases) enterprise size. (in some cases) enterprise size.

In many countries a measure of farm size may also be In many countries a measure of farm size may also be necessarynecessary

OccupationOccupation

Measured by ISCO88 (COM) at (up to) 4 digits or Measured by ISCO88 (COM) at (up to) 4 digits or a national occupational classification similar to it. a national occupational classification similar to it.

Exception is France, but has a Exception is France, but has a Table des Table des CorrespondancesCorrespondances between the between the Catégories Catégories SocioprofessionnellesSocioprofessionnelles (CSP) and ISCO88(COM). (CSP) and ISCO88(COM).

ISCO88(COM) is a core variable for the Eurostat ISCO88(COM) is a core variable for the Eurostat harmonisation programme and so is the obvious harmonisation programme and so is the obvious measure of occupation to use for ESeC.measure of occupation to use for ESeC.

Some weaknesses in ISCO (1)Some weaknesses in ISCO (1)

Minor group 522 (5.6% of all cases, 8.8% of Minor group 522 (5.6% of all cases, 8.8% of females in EULFS):females in EULFS):

522 Shop, stall and market salespersons and 522 Shop, stall and market salespersons and demonstratorsdemonstrators

5220 Shop, stall and market salespersons and demonstrators5220 Shop, stall and market salespersons and demonstrators

Minor group 419 (3.1% of all cases, 5.1% of Minor group 419 (3.1% of all cases, 5.1% of females):females):

419 Other office clerks419 Other office clerks 4190 Other office clerks4190 Other office clerks

Some weaknesses with ISCO (2)Some weaknesses with ISCO (2)

Minor group 827 (0.4% of all cases in EULFS, Minor group 827 (0.4% of all cases in EULFS, 0.5% of males)0.5% of males)

827827 Food and related products machine operatorsFood and related products machine operators

82718271 Meat and fish processing machine operatorsMeat and fish processing machine operators 82728272 Dairy products machine operatorsDairy products machine operators 82738273 Grain and spice milling machine operatorsGrain and spice milling machine operators 82748274 Baked goods, cereal and chocolate products machine operatorsBaked goods, cereal and chocolate products machine operators 82758275 Fruit, vegetable and nut processing machine operatorsFruit, vegetable and nut processing machine operators 82768276 Sugar production machine operatorsSugar production machine operators 82778277 Tea, coffee and cocoa processing machine operatorsTea, coffee and cocoa processing machine operators 82788278 Brewers, wine and other beverage machine operatorsBrewers, wine and other beverage machine operators 82798279 Tobacco production machine operatorsTobacco production machine operators

What do we do with all the information?What do we do with all the information?

Construct a ‘matrix’ or ‘lookup table’ Construct a ‘matrix’ or ‘lookup table’ The rows are ISCO occupational unit The rows are ISCO occupational unit

groupsgroups The columns are combinations of The columns are combinations of

employment status and position employment status and position E.g. 7323 ‘Glass engravers and etchers’E.g. 7323 ‘Glass engravers and etchers’ Self-employed = class 4Self-employed = class 4 Supervisors = class 6Supervisors = class 6 Employees = class 8Employees = class 8

ESeC in a world of incomplete informationESeC in a world of incomplete information

Some data sets may not contain all the elements Some data sets may not contain all the elements required to create ESeC in the prescribed required to create ESeC in the prescribed manner.manner.

ECHP: (2 digits ISCO or less – anonymity)ECHP: (2 digits ISCO or less – anonymity) ESS: ESS:

French occupations 2 digitsFrench occupations 2 digits Norwegian self-employed no occupation codeNorwegian self-employed no occupation code

EULFS: Until recently no question about EULFS: Until recently no question about supervisory responsibilitysupervisory responsibility

ESeC can cope!ESeC can cope!

Different versions:Different versions:

‘‘Full’: 4 digit ISCO, employment status, Full’: 4 digit ISCO, employment status, management/supervision, establishment sizemanagement/supervision, establishment size

‘‘Reduced’: no data on establishment sizeReduced’: no data on establishment size

‘‘Simplified’: working with occupation via ISCO alone. Simplified’: working with occupation via ISCO alone. Sends occupation to most common class for that unitSends occupation to most common class for that unit

Using Fewer ISCO DigitsUsing Fewer ISCO Digits

In addition occupation cannot always be coded In addition occupation cannot always be coded to four digits – often three or two used with to four digits – often three or two used with interviewers adding ‘zero’interviewers adding ‘zero’

The ESeC ‘lookup table’ gives a class value for The ESeC ‘lookup table’ gives a class value for every possible code in the ISCO book, e.g.every possible code in the ISCO book, e.g.

2000, 2100, 2140, 21422000, 2100, 2140, 2142

Timetable of WorkTimetable of Work

Draft matrices sent out to partners, NSIs, Draft matrices sent out to partners, NSIs, Eurostat and experts for responses - doneEurostat and experts for responses - done

Statistical Compendium – completed, appearing Statistical Compendium – completed, appearing soon on websitesoon on website

Validation studies – interim reports delivered, Validation studies – interim reports delivered, final drafts by Dec 15final drafts by Dec 15

Validation conference in Lisbon – January 19/20, Validation conference in Lisbon – January 19/20, 20062006

ESeC User Guide – Spring 2006ESeC User Guide – Spring 2006 ESeC Showcase event in Bled – Summer 2006ESeC Showcase event in Bled – Summer 2006

Request for Assistance/ParticipationRequest for Assistance/Participation

We want feedback from existing and potential We want feedback from existing and potential users of socio-economic classificationsusers of socio-economic classifications

Matrices and syntax available:Matrices and syntax available: Contact Contact rosed@essex.ac.ukrosed@essex.ac.uk or or

ekharr@essex.ac.ukekharr@essex.ac.uk..