European Youth Labour Markets by Miguel Ángel Malo & Almudena Moreno Mínguez

Author:Miguel Ángel Malo & Almudena Moreno Mínguez
Language: eng
Format: epub
Publisher: Springer International Publishing, Cham

9.2 Data and Sample

The empirical analyses exploit longitudinal data (2007–2013) derived from the Labour Force Survey set up by the ISTAT. Each year, the survey collects information on almost 280,000 households in 1246 Italian municipalities for a total of 700,000 individuals. Because we implement a dynamic analysis, the 2007 data are used only to obtain the information about the labour market status of 2008 analysed individuals. Therefore, we analyse the situation of young individuals over the period 2008–2013.

The sampling design of the survey is composed of two stages, with a stratification of the unit at the first stage; the first stage units are municipalities, whereas the second stage comprises households.

Each household member is interviewed. The main difference between the two stages is that although for families a 2-2-2 rotation scheme is applied, the municipalities surveyed do not change over time.

More specifically, a household was interviewed for two consecutive surveys and, after being excluded from the sample for two quarters, was interviewed for another two consecutive quarters. This is defined as a (2-2-2) rotation scheme.5 This rotation system makes it possible to maintain half the sample unchanged in two consecutive quarters and in quarters 1 year apart. In other words, the scheme implies a 50% overlapping of the theoretical sample to a quarter of the distance, a 25% overlapping to three quarters, a 50% to four quarters and a 25% to five quarters. Our analyses are based on yearly longitudinal data for the sample of youth from the age of 15 to the age of 29. The rotation scheme of the data allows analysing annual labour market transitions since each file contains information at 12 month-time distance. This fact has to be underlined, as other data, like the European Union Statistics on Income and Living Conditions (EU-SILC) used for investigations on labour market transitions allows for the reconstruction of labour market flows only retrospectively. This implies that individuals are asked to reconstruct their position in the labour market 1 year before. This fact, in addition to memory bias-related issues, typically causes an increase in the persistence rate, particularly in the unemployment state, thus determining biased results.6

The variables used are summarized in Table 9.1. The choice of variables was driven both by specific econometric tests and preliminary checks and by the relevance of the indicators, which are widely emphasized in the literature and in the aforementioned descriptive statistics.Table 9.1Descriptive statistics

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