Measuring Underemployment: Establishing the Cut-off Point
Sugiyarto, Guntur | March 2007
Abstract
Unemployment and underemployment are the most pressing problems in Asia today, which is reflected in the widespread underutilization rate of about 29% of the total labor force. In addition to the fact that most of the labor force in developing countries cannot afford to be completely unemployed, the standard labor force framework currently in use worldwide is biased toward counting labor force as employed rather than as unemployed. This systematically undervalues the full extent of the unemployment problem. This paper suggests a better way to determine the threshold to measure underemployment using the cluster method. The robustness of its results is assessed using ANOVA tests, Chow test, and recursive dynamic regressions. Overall, results indicate that the proposed cut-off point of 40 working hours per week is the best one.
Citation
Sugiyarto, Guntur. 2007. Measuring Underemployment: Establishing the Cut-off Point. © Asian Development Bank. http://hdl.handle.net/11540/1850. License: CC BY 3.0 IGO.ISSN
1655-5252
Keywords
Equity In Education
Alleviating Poverty
Educational Quality
Basic education
Education
Employment
Unemployment
Distributive education
Show allCollapse
Citable URI
http://hdl.handle.net/11540/1850Metadata
Show full item record
Users also downloaded
-
Global Agrifood Value Chains and Local Poverty Reduction: What Happens to Those Who Don’t Plug In?
(Asian Development Bank, 2015-09-28)The spread of supermarket retailing has transformed food production in developing countries including Indonesia. However, little attention has been paid to how the introduction of a supermarket retailer affects those farmers who continue to sell to ... -
Governance and Development Outcomes in Asia
(Asian Development Bank, 2014-01-15)This paper examines whether governance has any systematic effect on development outcomes such as human development, gender equality, infant and maternal mortality, poverty, access to sanitation, literacy levels and infrastructural provision, with a ... -
Do Governance Indicators Explain Development Performance? A Cross-Country Analysis
(Asian Development Bank, 2014-11-15)The central question addressed by this study is whether countries with above-average governance grew faster than countries with below-average governance. Using the World Bank’s worldwide governance indicators to measure governance performance, it ...