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This study aims to estimate unrecorded employment in Hungary through comprehensive analysis of administrative data sources, focusing on Labor Force Survey (LFS) data and pension records. By comparing LFS data capturing employment with pension insurance data on recorded employment, we extend the previous work of Ágoston-Köllő (2007). Main findings highlight variations in employment rates across demographics. Unresolved issues pertain to the robustness of definitions, weights, and occupational groupings, with recommendations for further analysis on changes from 2001 to 2004 and multivariate assessments.
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Estimation of unrecorded employment using administrative data Ágota Scharle Bálint Szabó Ministry of Finance 6.12.2007Budapest
Outline Aim and estimation strategyData sources Main resultsUnresolved issues and further work
Aim and estimation strategy • estimate unrecorded employment • assume that LFS data captures {all employment} • compare to Pension insurance captures{recorded employment} • extension to Augusztinovics-Köllő 2007
Data sources • LFS • Quarterly survey of Hungarians aged 15-74 • About 60 thousand observations • ILO definition of employment • Age, sex, occupation, region, etc • Pension records [ONYF] • Sample of administrative records on total population • about 140 thousand observations of adults aged 15-74 • pension contribution as employee or self-employed • Age, sex, occupation (employees only), region Both: for the years 2001-2004 and panel
Data sources 2 • LFS • Annual average of quarterly data • 6 main categories of type of employment:employee (2) or self-employed (4) • average of those working on reference week in 4 quarters • Pension records [ONYF] • 28 categories by type of employment contract • length of contract (days) • average employed population: total days/366
Unresolved issues … Robustness checks: • Definition of employment (OEP data?) • Weights • Grouping of occupations Cleaning admin data Benedek Dóra - Újraelosztás és mikroszimuláció
…and further work • time series for 2001-2004 • decomposing changes from 2001 to 2004 • multivariate analysis for sub-regions? • use wage data in admin records • use panel nature of admin records(flows into pension by occupation, flows into/from AMK) • ?