Behind and Beyond the (Head Count) Employment Rate

Abstract

Summary The paper argues that we need more general statistical indices for the analysis of the European labour markets. First, the paper discusses some normative aspects that are implicit in the current definition of the employment rate, which is a fundamental policy target in the new strategy Europe 2020. Second, it proposes a class of generalized indices based on work intensity, as approximated by the total annual hours of work relative to a benchmark value. Third, it derives, in a consistent framework, household level employment indices. These indices provide a more nuanced picture of the European labour markets, which better reflects the diversity in the use of part-time and fixed term jobs as well as other factors affecting the allocation of work between and within households.