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    How to Estimate the Number of Irregular Workers Using the KLIPS Data
  • How to Estimate the Number of Irregular Workers Using the KLIPS Data



    1. Irregular workers as defined by the tripartite committee 


     The classification of irregular workers in Korea is based on the agreement reached in July
    2002 by the tripartite committee of the National Assembly. According to this definition,
    workers under temporary, part-time, or atypical forms of employment are classified as
    being irregularly employed. 'Atypical' workers here include temporary agency workers,
    contract-based workers, workers in special forms of employment, home-based workers, and
    daily(short-term) workers.
     Since its 5th wave (2002), KLIPS has included questions for identifying alternative forms
    of employment (temporary agency work, contract-based work, independent subcontracting,
    and home-based work) in addition to temporary workers as frequently surveyed by studies
    in the U.S. Since its 10th wave (2007), the relevant questions were further expanded to
    allow for the identification of a wide variety of irregular workers. (For a full description of
    the additional survey on Forms of Employment, please refer to "Outline and Key Findings
    from the KLIPS 10th Wave Additional Survey on Forms of Employment" by Lee Sang-ho,
    Labor Review, KLI, July 2008 issue (in Korean)).
     According to the Supplemental Survey of the Economically Active Population Survey by
    Statistics Korea, the share of irregular workers among wage earners in Korea has fallen
    steadily from 36.6% in August, 2005 to 32.5% in August, 2015. The share based on KLIPS
    data is somewhat different. Using the same set of definitions as the EAPS, the share of
    irregular workers among wage earners calculated from KLIPS data has risen from 31.4% in
    2009 to 35.8% in 2014. While the absolute levels are comparable between the two studies,
    they follow different trends. These differences are believed to arise due to differences in
    how the studies are conducted.(See more details ; KLIPS Data Analysis Section 3)
    However, most of the core indices based on KLIPS data including the employment rate,
    unemployment rate, composition of workers by industry and occupation, labor time, and
    average wages do not exhibit substantial differences compared to the values based on
    official reference statistics. This indicates that the KLIPS data retains its reliability.


    2. Irregular workers based on work status

     In the KLIPS data, it is also possible to estimate the number of irregular workers based
    on the work status variable. However, whereas work status in KLIPS is determined based
    solely on the duration of the work contract, the EAPS Supplemental Survey defines work
    status under stricter criteria. This leads to some differences between the studies. To
    elaborate, the latter study first determines the work status (regular / temporary / daily)
    based on the duration of the work contract, and then re-classifies regular workers
    experiencing discrimination in terms the applicability of equal regulations at the workplace,
    eligibility for retirement and bonus payment, and eligibility for fringe benefits as temporary
    or daily workers.


    3. Self-declared irregular workers

     The KLIPS questionnaire also includes a question that asks respondents whether they
    regard themselves as regular or irregular workers. This 'self-declared' criterion presents
    only a minimal set of definitions about irregular work, leaving the respondent to judge for
    oneself whether one is regularly or irregularly employed. Therefore, the majority of
    respondents whose work status is 'temporary' or 'daily' tend to declare themselves as
    irregular workers. In fact, more than 80% of self-declared irregular workers in each year
    were found to be temporary or daily workers. Please note that the self-declared variable
    was not included in the 3rd wave (2000) of the study.


    * Generating forms of employment (SAS) ;

    * EAPS Supplemental Survey Criteria ;

    * Temporary workers ;

    IF p180501 = 1 THEN foe11 = 1 ; * fixed contract workers > temporary workers ;
    ELSE IF p180501 = 2 AND p180601 = 2 AND p180605 in (1,2,3,4,5,6) THEN foe11 = 1 ; * non-fixed
    contract workers > temporary workers ;
    ELSE IF p180501 = 2 AND p180602 = 2 THEN foe11 = 210 ; * non-fixed contract workers > temporary
    workers ;
    ELSE foe11 = 0 ;

    * part-time workers ;

    IF p180315 = 1 THEN foe12 = 1 ;
    ELSE foe12 = 0 ;

    * temporary agency workers > atypical workers ;

    IF p180611 = 2 THEN foe13 = 1 ;
    ELSE foe13 = 0 ;

    * subcontracted workers > atypical workers ;

    IF p180611 = 3 THEN foe14 = 1 ;
    ELSE foe14 = 0 ;

    * workers in special forms of employment > atypical workers ;

    IF p180612 = 1 THEN foe15 = 1 ;
    ELSE foe15 = 0 ;

    * home-based workers > atypical workers ;

    IF p180613 = 1 THEN foe16 = 1 ;
    ELSE foe16 = 0 ;

    * daily (short-term) workers > atypical workers ;

    IF p180508 = 1 THEN foe17 = 1 ;
    ELSE foe17 = 0 ;

    * irregular workers ;

    IF foe11 + foe12 + foe13 + foe14 + foe15 + foe16 + foe17 > 0 THEN foe10 = 1 ;
    ELSE foe10 = 0 ;

    * based on work status ;

    IF p180314 = 1 THEN foe2 = 0 ;
    IF p180314 in (2,3) THEN foe2 = 1 ;

    * self-declared ;

    IF p180317 = 1 THEN foe3 = 0 ;
    IF p180314 = 2 THEN foe3 = 1 ;


    * Generating forms of employment (SPSS) ;

    compute foe11=0.
    if (p180501=1) foe11=1.
    if (p180501=2 and p180601=1 and p180602=2) foe11=1.
    if (p180501=2 and p180601=2 and (p180605=1 or p180605=2 or p180605=3 or p180605=4 or p180605=5 or
    p180605=6)) foe11=1.
    rename variables (foe11=temporary workers).

    compute foe12=0.
    if (p180315=1) foe12=1.
    rename variables (foe12=part-time workers).

    compute foe13=0.
    if (p180611=2) foe13=1.
    rename variables (foe13=temporary agency workers).

    compute foe14=0.
    if (p180611=3) foe14=1.
    rename variables (foe14=subcontracted workers).

    compute foe15=0.
    if (p180612=1) foe15=1.
    rename variables (foe15=workers in special forms of employment).

    compute foe16=0.
    if (p180613=1) foe16=1.
    rename variables (foe16=home-based workers).

    compute foe17=0.
    if (p180508=1) foe17=1.
    rename variables (foe17=daily (short-term) workers).

    compute foe1=0.
    if (foe11=1 or foe12=1 or foe13=1 or foe14=1 or foe15=1 or foe16=1 or foe17=1) foe17=1.
    rename variables (foe1=irregular workers).

    compute foe2=0.
    if (p180317=2 or p180317=3) foe2=1.
    rename variables (foe2=irregular workers based on work status).

    compute foe3=0.
    if (p180317=2) foe3=1.
    rename variables (foe3=self-declared irregular workers).


    * Generating forms of employment (Stata) ;

    qui gen foe11=0
    qui replace foe11=1 if p180501=1
    qui replace foe11=1 if p180501=2 & p180601=1 & p180602=2
    qui replace foe11=1 if p180501=2 & p180601=2 & (p180605=1 | p180605=2 | p180605=3 | p180605=4 |
    p180605=5 | p180605=6)
    label var foe11 “temporary workers”

    qui gen foe12=0
    qui replace foe12=1 if p180315=1
    label var foe12 “part-time workers”

    qui gen foe13=0
    qui replace foe13=1 if p180611=2
    label var foe13 “temporary agency workers”

    qui gen foe14=0
    qui replace foe14=1 if p180611=3
    label var foe14 “subcontracted workers”

    qui gen foe15=0
    qui replace foe15=1 if p180612=1
    label var foe15 “workers in special forms of employment”

    qui gen foe16=0
    qui replace foe16=1 if p180613=1
    label var foe16 “home-based workers”

    qui gen foe17=0
    qui replace foe17=1 if p180508=1
    label var foe17 “daily (short-term) workers”

    qui gen foe1=0
    qui replace if (foe11+foe12+foe13+foe14+foe15+foe16+foe17>0) foe17=1
    label var foe1 “irregular workers”

    qui gen foe2=0
    qui replace foe2=1 if p180317=2 or p180317=3
    label var foe2 “irregular workers based on work status”

    qui gen foe3=0
    qui replace foe3=1 if p180317=2
    label var foe3 “self-declared irregular workers”​




    <KLIPS User's Guide (Wave 1~18th) FAQ Q27>


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