Methodologies: ILO’s recommendations on an integrated system of wages and related statistics g y g Monica D. Castillo Chief Decent Work Data Production Unit Chief, Decent Work Data Production Unit ILO Department of Statistics – Geneva castillom@ilo.org National Labour Market Information Training Programme Port of Spain, Trinidad and Tobago 31 October – 11 November 2011 Department of Statistics
Contents • Establishing a statistical programme on sources of information on wages and employment-related income statistics: An integrated wages and employment related income statistics: An integrated approach • • Establishment based surveys: (wages statistics) Establishment-based surveys: (wages statistics) – Current statistics – Structural (non-current) statistics • Household surveys: Labour force surveys (employment-related income statistics) income statistics) • Administrative records International Labour Office 2 Department of Statistics
Establishing a statistical programme of wages and related statistics of wages and related statistics • Major goals to be achieved in establishing a programme for the collection/compilation of basic wages and related statistics: collection/compilation of basic wages and related statistics: – Should be as comprehensive as possible, i.e. cover all major areas of wages & related statistics – Should be done so that resulting data is mutually consistent & reveal inter-relationships – Should target both current (short-term) needs and long-term Sh ld t t b th t ( h t t ) d d l t needs – Should cover all branches of economic activity, geographical Should cover all branches of economic activity, geographical regions, whole employee population (wages) and also self- employed persons (employment-related income) International Labour Office 3 Department of Statistics
Integrated sources of information on wages statistics and income from employment 12 th ICLS (1973) and 16 th ICLS (1998) th th Current statistics Structural (non-current) Statistics Statistics s ased surveys (monthly or quarterly) nd surveys (annually, or 3 to 5 years) Serves as Current establishment benchmark Survey on the structure survey on: y censuses an and distribution of earnings and distribution of earnings blishment-ba - earnings and hours worked (or hours paid for); - wage rates and Survey on labour cost Survey on labour cost normal hours of work normal hours of work Estab Industrial Current labour cost is estimated Agricultural surveys with administrative information Household based Surveys Administrative records (agricultural earnings, (agricultural earnings, income from employment) International Labour Office 4 Department of Statistics
Establishment based surveys y • Source of information – Payroll P ll – Other establishments’ registers: attendance, social security and tax payments • Units of observation • Coverage • • Data available and outputs Data available and outputs • Sample design • Data collection reference periods p • Advantages and Limitations • Data collection practices International Labour Office 5 Department of Statistics
Observation units • The enterprise • • The establishment The establishment • The kind of activity unit • Groups of workers – Men and women – Blue collar and white collar workers (wage earners, salaried employees) employees) – Permanent and casual workers • Groups of occupations – Specific within industries • Individual workers (allows the greatest flexibility in outputs) – All or a subsample of workers All or a subsample of workers International Labour Office 6 Department of Statistics
Enterprises p • Institutional unit in its capacity as a producer of goods and services; an enterprise may be a corporation, a quasi- corporation, a non-profit institution, or an unincorporated enterprise. International Labour Office 7 Bureau of Statistics
Establishments • An enterprise, or part of an enterprise, which engages in productive activity at or from one location • It is the preferred unit for sampling – But not always feasible if the enterprise does not y p maintain separate records International Labour Office 8 Bureau of Statistics
Kind of activity units y • An enterprise, or a part of an enterprise, which engages in only one kind of (non-ancillary) productive activity or in which the principal productive activity accounts for most of the value added. International Labour Office 9 Department of Statistics
Coverage g • Of industries – May exclude agriculture, education, health and public administration and y g , , p defence • Of institutional units The objective is to cover all The objective is to cover all – May only include corporations/government y y g sectors that are important in the sectors that are important in the sectors that are important in the sectors that are important in the • Of establishments country in terms of country in terms of - employment - employment – Establishments above x number - capital intensive production - capital intensive production of workers - exporting industries - exporting industries ti ti i d i d t i t i • Of workers within industries - special needs (women - special needs (women – Only adult/permanent dominated, vocational training dominated, vocational training – Excluding managers and supervisors Excluding managers and supervisors related, etc.) related, etc.) , , ) ) – Excluding apprentices, part-time workers • Of geographical areas – Urban areas only Urban areas only International Labour Office 10 Department of Statistics
Data available and outputs Data available and outputs • Data available – Components of wages: basic wages bonuses allowances social security Components of wages: basic wages, bonuses, allowances, social security payments – Contractual hours, overtime hours paid, absence from work (paid and unpaid) – Number of jobs held by persons on the payroll Number of jobs held by persons on the payroll • Jobs held by paid employees --- regular, without long absences • Jobs held by non paid employees --- working proprietors and family members b – Information about establishments – Information about workers • Outputs International Labour Office 11 Department of Statistics
Information about establishments • Industry or industrial group • Institutional sector (corporation, cooperative, government, non-profit institution) • Region R i • Size of establishment • Wage payment systems (work schedules, shift operations, incentive bonuses, holidays and vacation practices, etc.) • Labour-management agreements coverage L b • Turnover (hirings, firings) International Labour Office 12 Department of Statistics
Information about workers • Type of worker – Wage earner/salaried employee W / l i d l – Blue collar/white collar worker – Skilled/semi skilled/unskilled Skilled/semi skilled/unskilled – Piece rate worker – Adult/non-adult worker • Sex, age group • Casual/permanent worker • Occupation • Education level • L Length of service/Work experience th f i /W k i International Labour Office 13 Department of Statistics
Sample design of an establishment survey survey • Sample units – Establishments (more common) or Establishments (more common) or – Workers • • Sampling frame: there should be a unique sample frame for multiple Sampling frame: there should be a unique sample frame for multiple establishment surveys • S Sampling method li th d – List-based sampling – Area sampling for small establishments • Coverage – As complete as possible – But usually depends on sample frame International Labour Office 14 Department of Statistics
Reference periods and job coverage p j g • Reference periods of data collection: – Depend on survey frequency (monthly, quarterly, or annually) Depend on survey frequency (monthly quarterly or annually) and topic • Job coverage may be any of the following: – All jobs in the payroll anytime during the month, quarter or year independently of the number of days worked during the given independently of the number of days worked during the given reference period • Will include jobs that started or ended in the course of the month, quarter or year – All jobs in the payroll during the whole month, quarter or year (i.e., employed every day of the month, quarter or year) ( p y y y q y ) – An average number of jobs during the month, quarter or year International Labour Office 15 Department of Statistics
Outputs p • Earnings per hour worked or paid (by components) • W Wage rates per normal hour of work t l h f k • Labour cost per hour worked (by components) • Number of jobs Number of jobs • Average hours worked or hours paid for • Distribution of earnings (median earnings) g ( g ) • Gender pay gap • Wage indices – Simple indices of growth for particular industry, occupation – Weighted, aggregative index International Labour Office 16 Department of Statistics
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