A New Multidimensional Approach to Measuring Precarious Employment

Abstract

This article proposes a new methodology to measure precarious employment with a multidimensional approach. The adjusted multidimensional precariousness rate employed to measure job precariousness is calculated on a counting approach and exhibit several advantages, including its decomposability according to the relative contribution to total precariousness of different dimensions and sub-populations. For illustrative purposes, the methodology is applied to the Spanish case using microdata from the Encuesta de Estructura Salarial (Wage Structure Survey) and considering three precariousness dimensions of jobs (low wages, fixed-term contracts and part-time work). The evidence obtained shows that at the beginning of the economic crisis there was an increase in the incidence and intensity of precariousness for new jobs created in the Spanish economy. Moreover, obtained evidence shows that the incidence of precarious employment is particularly high in certain economic sectors and for females.