A New Approach to Measuring Labor Market Attachment
The new LISER working paper by Cantó, Nagore García, and Valentova (discover it here) introduces a transformative method to measure how individuals remain attached—or detached—from the labor market over long periods.
Rather than depending on outdated binary classifications or simplistic employment statuses, the authors develop a continuous index based on the Foster-Greer-Thorbecke (FGT) poverty metrics (following Gradín et al., 2012, 2017).
This adaptation allows for temporal measurement of employment, capturing not only whether people work but how consistently and intensely they participate over time. The index weighs both the duration and frequency of employment gaps, penalizing unstable working patterns and revealing a richer picture of labor engagement.