Short description of the algorithm used for the derivation of the target variable (target variable name: euroesec)

Algorithm_Description.txt

Tool: Algorithm Description in txt format

English

2020-02-18

HOW TO DERIVE ESeC / To create ESeC, data on occupation and employment status are required.An ESeC category is allocated by using a combination of: • Information about occupation coded to minor group level of ISCO88 (COM) • Information about employment status and size of organization in the form of an employment status variable The derived employment status variable is created by combining data on whether an individual is an employer, self-employed or an employee, size of organization (where collected) and (other than for managers and professionals in ISCO major groups 1 and 2) supervisory status. ESeC needs to distinguish employers; the self-employed who work on their own account with no employees; and employees who are employed by an individual or organization. For size of organization, ESeC uses information on the number of employees in the 'workplace' in order to distinguish between employers in large and small establishments and, for some occupations, between higher and lower managers. The distinction between large and small employers is achieved by applying a size rule cut-off of 10 employees. Individual employers in organizations with 10 or more employees are deemed to own 'large' organizations; those owning enterprises below this threshold are classified as 'small' employers. Supervisors are employees who are neither managers nor professionals but who are responsible as their main job task for supervising the work of other employees.

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