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Measuring (in)security in the event of unemployment: are we forgetting someone?

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  • Gabriella Berloffa
  • Francesca Modena

Abstract

In this paper we argue that the consequences of the unemployment risk may be quite different according to the number of persons who depend on the income of the active members, and propose new measures for the economic (in)security related to employment risk, that take into account the household composition of the unemployed: a per-earner actuarially-fair insurance premium corresponding to the aggregate equivalent expected loss, and the inactive-unemployed dependency rate (IUDR), i.e. the average number of persons that each unemployed individual has to provide for (beyond herself). Both have a simple interpretation but the latter has an advantage in terms of data-requirement. Adding the IUDR in the measure of employment security used by Osberg and Sharpe, the relative position of various countries change, suggesting that the overall level of insecurity associated to similar unemployment and replacement rates may be quite different if we consider all the individuals in the households that are potentially affected by this risk.

Suggested Citation

  • Gabriella Berloffa & Francesca Modena, 2011. "Measuring (in)security in the event of unemployment: are we forgetting someone?," Department of Economics Working Papers 1111, Department of Economics, University of Trento, Italia.
    • Handle: RePEc:trn:utwpde:1111
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    References listed on IDEAS

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    1. Lars Osberg, 1998. "Economic Insecurity," Discussion Papers 0088, University of New South Wales, Social Policy Research Centre.
    2. Paul Gregg & Jonathan Wadsworth, 2008. "Two sides to every story: measuring polarization and inequality in the distribution of work," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 171(4), pages 857-875, October.
    3. Walter Bossert & Conchita D'Ambrosio, 2013. "Measuring Economic Insecurity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(3), pages 1017-1030, August.
    4. Walter Bossert & Conchita D'Ambrosio, 2013. "Measuring Economic Insecurity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54, pages 1017-1030, August.
    5. Lars Osberg, 2010. "Measuring Economic Insecurity and Vulnerability as Part of Economic Well-Being: Concepts and Context," Working Papers daleconwp2010-04, Dalhousie University, Department of Economics.
    6. Carlos Gradin & Olga Canto & Coral del Rio, 2012. "Measuring employment deprivation among households in the EU," Working Papers 247, ECINEQ, Society for the Study of Economic Inequality.
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    Cited by:

    1. Marina Romaguera de la Cruz, 2017. "Economic insecurity in Spain: A multidimensional analysis," Working Papers 448, ECINEQ, Society for the Study of Economic Inequality.
    2. Francesca Modena & Concetta Rondinelli & Fabio Sabatini, 2014. "Economic Insecurity and Fertility Intentions: The Case of Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 233-255, May.
    3. Dmitry Petrov & Marina Romaguera-de-la-Cruz, 2023. "Measuring economic insecurity with a joint income-wealth approach," Working Papers 637, ECINEQ, Society for the Study of Economic Inequality.
    4. Marek Kośny & Maria Piotrowska, 2019. "Assessment of Economic Security of Households Based on a Scenario Analysis," Economies, MDPI, vol. 7(3), pages 1-20, August.
    5. Romina Boarini & Lars Osberg, 2014. "Economic Insecurity: Editors' Introduction," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 1-4, May.
    6. Francesca Giambona & Laura Grassini & Daniele Vignoli, 2022. "Detecting economic insecurity in Italy: a latent transition modelling approach," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 31(4), pages 815-846, October.
    7. Carlos Gradin & Olga Canto & Coral del Rio, 2012. "Measuring employment deprivation among households in the EU," Working Papers 247, ECINEQ, Society for the Study of Economic Inequality.
    8. Cantó, Olga & García-Pérez, Carmelo & Romaguera-de-la-Cruz, Marina, 2020. "The dimension, nature and distribution of economic insecurity in European countries: A multidimensional approach," Economic Systems, Elsevier, vol. 44(3).
    9. Marina Romaguera‐de‐la‐Cruz, 2020. "Measuring Economic Insecurity Using a Counting Approach. An Application to Three EU Countries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(3), pages 558-583, September.
    10. Olga Cantó & Carmelo García-Pérez & Marina Romaguera de la Cruz, 2021. "Multidimensional Measures of Economic Insecurity in Spain: The Role of Aggregation and Weighting Methods," Hacienda Pública Española / Review of Public Economics, IEF, vol. 238(3), pages 29-60, September.

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