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A Dynamic Labor Utilization Framework: Setting the Under-employment Threshold

Gilbert Montcho, Université de Montréal
Yves Carriere, Université de Montréal

Based on the Labor Utilisation Framework from the ILO (International Labor Organization), the vast majority of officials statistics and empirical researches on under-employment use the same threshold as part-time employment or an arbitrary fixed number of hours per week. This study demonstrates that no single threshold can capture the levels of labor underutilization and proposes a Dynamic Threshold of Under-employment (DTU) based on an Adapted Labor Utilisation Framework (ALUF) for analyzing under-employment. Application of these methods using data from the United States Annual Social and Economic Supplement (ASEC) of the Current Population Survey (CPS) suggests that the threshold for under-employment varies widely across socio-demographic status. For instance, while adult men aged 25-54 would be willing to work about 40 hours per week, same age adult women, on the other hand, would only be available for 35 hours per week, and both men and women aged 15-24 could work only for 24 hours.

Keywords: Applied demography, Human capital and labour markets, Comparative methods

See paper.

  Presented in Session 93. Human Capital, Labour, Standard of Living and Inequality