A multidimensional approach in the measurement of underemployment

Abstract

Within the quality of the work framework a particularly important aspect is underemployment, since it identifies a portion of persons employed inadequately, below their availability and skills, affecting their capacities and well-being. Two main forms of underemployment can be distinguished: a) time related underemployment, which can be measured directly and reflects insufficiency in the volume of work; b) misallocation of labour resources, in particular the mismatch of occupation and education. The aim of this paper is to present a new approach in the measurement of underemployment, showing what information is available from the Italian labour force survey, and what other information is needed in order to reach a better understanding of the multiple facets and to produce a better measure of underemployment, especially concerning skill-related and other forms, such as income-related underemployment.