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Building a Composite Labor Precariousness Index

Tomás Gutiérrez-Barbarrusa, Miguel Cuerdo-Mir and Raquel Ibar-Alonso

International Journal of Manpower, 2025, vol. 46, issue 9, 1752-1778

Abstract: PurposeThe authors propose a composite index of labor precariousness for 15 European countries from 1995 to 2019, understanding labor precarity as an extensive phenomenon encompassing various forms of precarious employment – unwanted or unchosen – and unemployed workers.Design/methodology/approachFollowing the rigorous methodology recommended by OECD and UNECE, the authors construct a Composite Labor Precariousness Index (CLPI). This index, developed with meticulous attention to detail, enables the quantitative measurement of the phenomenon using factor analysis techniques.FindingsThis research provides evidence that precarity has been an increasing function of time in European countries since 1995. Although results showed a cyclical influence during expansionary phases that tends to stabilize the index, there is no indication of a decrease in the prevalence of precarious forms of employment in labor markets over time. Moreover, two statistically different models allow for the identification of clustering of precarity, highlighting Southern European countries (Greece, Italy, Spain and Portugal) as experiencing more intense and abrupt growth in precariousness from a dynamic point of view.Originality/valueWhile most academic and public studies continue to apply unidimensional definitions or operationalizations focused solely on precarious working conditions, this study introduces a novel multidimensional approach. This fresh perspective in the field offers a broader understanding of precariousness as a structural characteristic of contemporary postindustrial societies, extending beyond traditional labor relationships.

Keywords: Composite Labor Precariousness Index; Precarious employment; Unemployment; Job insecurity; Western Europe (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijmpps:ijm-08-2024-0511

DOI: 10.1108/IJM-08-2024-0511

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