Structure of Survey 2010 Quality Report (Commission Regulation (EC) 698/2006) 1. Relevance (optional item) The NES (National Employment Survey) carried out by the CSO collects information for the SES (Structure of Survey) and provides the data required under EU Regulation (EC) No. 1738/2005 of the European Parliament and of the Council of 21 October 2005 for the Structure of Survey (SES), forwarded to Eurostat every 4 years. The NES Business Survey was carried out annually between 2003 and 2009. In 2010 the NES was produced from administrative data sources as a result of budgetary restrictions. The objective of the NES was to provide, at national level, very detailed structural information on workplace issues, including earnings and factors influencing earnings, which other short-term earnings surveys could not provide. Factors influencing earnings include: occupation, educational attainment, age group, length of service and nationality, as well as other factors that go towards explaining differences in rates of hourly and annual earnings. The NES is also the main source of earnings for the Gender Pay Gap and for Median earnings which are required both at EU and National level on an annual basis. The Irish Government requested the CSO to provide an up-to-date comparison of the earnings of the public and the private sectors. In Ireland, as in other EU-Member States the comparison of the earnings of the public sector and the private sector has been for use in discussions on public sector wage levels. Data sources are central to undertaking any analysis. In Ireland, the CSO s NES, was identified as an appropriate source for undertaking the comparison of the earnings of the public sector and the private sector, see Foley & O Callaghan 1 and Kelly et al 2. - The main users of the NES survey are the following: Government Departments European Union/Eurostat International Organisations e.g. OECD Research institutes e.g. ESRI, Universities Professional Bodies The general public Trade Unions Other CSO sections - User Needs The main user needs are a breakdown of average earnings in the main Classifications e.g. NACE, Occupation etc; Median earnings and Gender Pay Gap requirements. Researchers main needs are analysis of the Research Microdata files (RMFs) for macroeconomic research. Extensive research has been published from the NES RMFs on Gender; Nationality; Public/Private Wage Gap; levels in the economy; etc. Researchers are assisted with infrastructural support to work on the RMFs. The staff team in the Analysis Section liaise with the researchers and provide technical support. Researchers are very satisfied with the level of support and a large body of research has been carried out by researchers involved in policy issues and macroeconomic research. Most researchers renew their access to the RMFs on an annual basis. 1 Investigating the Public-Private Wage Gap in Ireland Using Data from the National Employment Survey 2007. Foley, Patrick; O'Callaghan, Fiona - Dublin: Journal of the Statistical and Social Inquiry Society of Ireland, Vol.XXXIX, 2009/10, pp23-52. 2 Kelly, E., McGuinness, S., & O Connell, P. (2009b). The Public-Private Sector Pay Gap in Ireland: What Lies Beneath?. ESRI Working Paper No. 321 (October). Dublin, Ireland: The Economic and Social Research Institute. Central Statistics Office, Ireland 1
2. Accuracy 2.1 Sampling error Coefficients of Variation for Total & Hours Worked per Month Table 1a Full-time employees by NACE Rev.2 and sex NACE Rev.2 B - E Industry 3.1 2.4 3.0 F Construction 3.4 2.1 3.2 G Wholesale and retail trade; repair of motor vehicles and motorcycles 2.9 3.4 3.1 H Transportation and storage 2.9 2.1 2.8 I Accommodation and food service 3.0 3.1 3.1 J Information and communication 3.6 2.7 3.4 K - L Financial, insurance and real estate 3.6 2.4 3.4 M Professional, scientific and technical 3.5 2.1 3.2 N Administrative and support service 4.3 3.4 4.2 O Public administration and defence; compulsory social security 1.5 1.8 1.7 P Education 2.2 2.3 2.4 Q Human health and social work 3.2 2.3 2.7 R - S Other NACE 3.6 2.9 3.5 All employees - excl. Sector O 3.4 2.7 3.2 All employees - fulltime 3.2 2.6 3.1 All employees full & part-time 3.4 2.6 3.3 NACE Rev.2 Hours Worked Hours Worked Hours Worked B - E Industry 0.6 0.6 0.6 F Construction 0.8 0.6 0.8 G Wholesale and retail trade; repair of motor vehicles and motorcycles 0.6 0.8 0.7 H Transportation and storage 0.7 0.6 0.7 I Accommodation and food service 1.0 1.2 1.1 J Information and communication 0.7 0.5 0.6 K - L Financial, insurance and real estate 0.3 0.4 0.4 M Professional, scientific and technical 0.5 0.4 0.5 N Administrative and support service 0.6 0.9 0.8 O Public administration and defence; compulsory social security 0.4 0.5 0.5 P Education 1.4 1.1 1.2 Q Human health and social work 0.8 0.8 0.8 R - S Other NACE 0.6 0.7 0.6 Central Statistics Office, Ireland 2
Table 1b - Part-time employees by NACE Rev.2 and sex NACE Rev.2 MALES FEMALES FEMALES B - E Industry 3.0 3.1 3.1 F Construction 2.8 2.3 2.5 G Wholesale and retail trade; repair of motor vehicles and motorcycles 3.3 2.7 2.8 H Transportation and storage 3.4 2.6 2.9 I Accommodation and food service 3.2 2.7 2.9 J Information and communication 4.1 3.9 3.9 K - L Financial, insurance and real estate M Professional, scientific and technical N Administrative and support service O Public administration and defence; compulsory social security 5.2 2.8 3.2 3.2 2.7 3.0 2.2 3.3 3.0 2.4 2.0 2.1 P Education 4.0 3.2 3.3 Q Human health and social work 3.1 2.9 3.0 R - S Other NACE 3.0 3.7 3.5 All Employees 3.3 NACE Rev.2 Hours Worked Hours Worked Hours Worked B - E Industry 1.3 1.5 1.4 F Construction 1.5 1.3 1.4 G Wholesale and retail trade; repair of motor vehicles and motorcycles 1.9 1.6 1.6 H Transportation and storage 1.9 1.2 1.5 I Accommodation and food service 2.3 1.7 1.9 J Information and communication 2.0 1.5 1.7 K - L Financial, insurance and real estate 1.3 1.3 1.4 M Professional, scientific and technical 1.7 1.5 1.6 N Administrative and support service 1.7 1.8 1.8 O Public administration and defence; compulsory social security 1.1 1.4 1.4 P Education 1.4 1.9 1.9 Q Human health and social work 1.5 1.6 1.6 Central Statistics Office, Ireland 3
R - S Other NACE 1.8 1.8 1.8 Table 2a Full-time employees by occupation and sex MALES FEMALES All employees OCCUPATION 1 Managers and administrators 4.1 3.4 4.1 2 Professional 2.3 1.8 2.1 3 Associate professional and technical 2.7 2.1 2.6 4 Clerical and secretarial 2.2 1.7 1.9 5 Craft and related 2.6 2.6 2.8 6 Personal and protective services 2.0 1.5 1.9 7 Sales 2.8 1.8 2.7 8 Plant and machine operatives 2.3 2.0 2.3 9 Other 1.9 1.8 1.9 OCCUPATION MALES FEMALES All employees Hours Worked Hours Worked Hours Worked COEFFICIENT OF 1 Managers and administrators 0.6 0.7 0.6 2 Professional 0.7 0.8 0.8 3 Associate professional and technical 0.6 0.6 0.6 4 Clerical and secretarial 0.6 0.6 0.6 5 Craft and related 0.8 1.1 1.0 6 Personal and protective services 0.7 0.8 0.7 7 Sales 0.7 0.6 0.7 8 Plant and machine operatives 0.7 0.6 0.7 9 Other 0.7 0.9 0.8 Central Statistics Office, Ireland 4
Table 2b- Part-time employees by occupation and sex OCCUPATION MALES FEMALES All employees 1 Managers and administrators 1.7 1.8 4.2 2 Professional 1.7 1.4 2.2 3 Associate professional and technical 1.4 1.5 2.9 4 Clerical and secretarial 1.5 1.5 2.3 5 Craft and related 2.2 1.9 3.0 6 Personal and protective services 1.3 1.5 1.7 7 Sales 1.8 1.8 3.1 8 Plant and machine operatives 1.6 1.3 2.5 9 Other 1.5 1.5 2.7 OCCUPATION MALES FEMALES FEMALES Hours Worked Hours Worked Hours Worked 1 Managers and administrators 1.7 1.8 1.8 2 Professional 1.7 1.4 1.4 3 Associate professional and technical 1.4 1.5 1.5 4 Clerical and secretarial 1.5 1.5 1.5 5 Craft and related 2.2 1.9 1.9 6 Personal and protective services 1.3 1.5 1.3 7 Sales 1.8 1.8 1.8 8 Plant and machine operatives 1.6 1.3 1.5 9 Other 1.5 1.5 1.6 Central Statistics Office, Ireland 5
Table 3a Full-time employees by AGE GROUP and sex AGE GROUP 15-24 2.4 2.3 2.4 25-29 2.6 2.2 2.4 30-39 2.9 2.4 2.7 40-49 3.2 2.7 3.1 50-59 3.3 2.5 3.2 60+ 3.5 3.3 3.5 AGE GROUP Hours Worked Hours Worked Hours Worked 15-24 0.8 0.8 0.8 25-29 0.7 0.8 0.7 30-39 0.6 0.7 0.7 40-49 0.7 0.9 0.8 50-59 0.8 1.0 0.9 60+ 0.8 1.1 0.9 Table 3b - Part-time employees by AGE GROUP and sex AGE BAND 15-24 3.3 3.3 3.3 25-29 3.5 3.5 3.5 30-39 3.8 3.0 3.2 40-49 3.3 3.0 3.0 50-59 2.8 3.0 2.9 60+ 3.8 3.0 3.3 AGE BAND Hours Worked Hours Worked Hours Worked 15-24 2.2 1.8 1.9 25-29 1.8 1.6 1.7 30-39 1.7 1.6 1.7 40-49 1.4 1.5 1.5 50-59 1.6 1.6 1.7 60+ 1.7 1.8 1.8 Central Statistics Office, Ireland 6
2.2 Non-sampling Error 2.2.1 Coverage errors Difference between the Reference and Study Population The SES 2010 was constructed from Administrative data sources, namely the NES 2009 and Revenue 2009 and 2010 Annual trends. For accuracy of earnings trends the SES 2010 did not include employees working less than 10 hours per week nor less than 50 weeks in the year. This cohort of employees was considered too volatile to monitor trends in income changes between 2009 and 2010. This has resulted in under-representation of employees in Sectors which have a high proportion of part-time and casual staff (e.g. Food & Accommodation Services, Retail, etc.). The enterprises in the SES 2010 only include those with 3 or more employees. Therefore some sectors such as Professional Services (e.g. Doctors, Solicitors, etc.) may be under represented as there is a high proportion of sole traders and private practices in these sectors. 2.2.3 Non-response errors - unit response rate Table 2.2.3 (a) Sample Fractions by NACE Rev.2 Enterprises in SES 2010* in comparison to Business Register NACE Rev.2 Sector No. of Enterprises in SES 2010 sample No. of Enterprises in SES 2010 Population $ Sample Fraction Business Register Enterprise Nos. Nos. Nos.* % Nos. B-E Industry 618 20,766 3 14,306 F Construction 422 17,386 2 40,459 G Wholesale and retail trade 1072 29,378 4 43,981 H Transporation and Storage 144 5,733 3 10,572 I Accommodation and Food Services 405 18,402 2 16,511 J Information and communication 188 6,058 3 10,057 K-L Financial, insurance, etc. 205 4,398 5 16,955 M Professional, scientific & technical 413 9,410 4 30,801 N Administrative and support services 179 6,765 3 11,789 Business economy excluding of holding companies (B to N,-642) 3,646 118,295 3 195,431 Footnote $ Enterprises with 3 or more employees * Employees in the SES 2010 only include the following: Employees worked 10 or more hours per week Employees worked 50 or more weeks per year 2.2.4 Model Assumption errors SES 2010 The NES 2009 survey was used to construct the SES 2010 data by applying Revenue Commissioners income changes to the NES 2009 data. An analysis of employees net incomes from Revenue Commissioners data was carried out to calculate the percentage change in incomes between 2009 and 2010. This percentage change was then applied to the 2009 NES data to create the NES 2010 data. Therefore the NES 2010 hours worked are unchanged from the 2009 NES data, but the earnings have been adjusted to follow Revenue Commissioners income trends. The standard approach for comparisons is to match the data for employees who work for 10 or more hours per week and work for 50 or more weeks per year. Also employees whose Revenue Commissioners net income in 2010 were outside a 40% range of their 2009 Revenue Commissioners net income were excluded; as large Central Statistics Office, Ireland 7
changes in Net incomes may be the result of pension contributions varying from year to year. This is the criteria under which the SES 2010 data is analysed. Short-term earnings statistics showed that hours worked remained relatively unchanged between 2009 and 2010. 3 Timeliness & Punctuality 3.1 Punctuality Key dates - August 2011 NES 2009 Published - Sept 2011 to Dec 2011 Preparation of Research microdata files and fulfilling EU & National data requirements for 2009 NES data. - Jan 2012 Analysis of administrative data sources (NES 2009 and Revenue Commissioner s P35 files) to provide SES 2010 data - July 2012 Deliver SES 2010 data to Eurostat - Oct 2012 Publish National Employment Survey 2009 and 2010 Supplementary Analysis (an econometric report on the Public/Private Sector wage Gap). - Oct 2012 to Feb 2012 Analysis of Public Sector Pension Levy Econometric analysis for Troika 3.2 Timeliness T+19 months delivered to Eurostat 4. Accessibility & Clarity 4.1 Accessibility CSO s NES 2009 and 2010 supplementary analysis publication http://www.cso.ie/en/media/csoie/releasespublications/documents/earnings/2010/nes_0910supp.pdf 4.2 Clarity Details for the NES Survey are provided on www.cso.ie http://www.cso.ie/en/releasesandpublications/earnings/ 5. Comparability 5.1 Geographic comparability - National concepts have been defined as close as possible to European concepts, all classifications and definitions are as stated in the regulation. 5.2 Comparability over time - There has been a significant change in the data provision method for the SES 2010 from the previous structure of earnings survey. The methodology has also changed as outlined above as the data for SES 2010 was provided entirely from Administrative data sources. Central Statistics Office, Ireland 8
6. Coherence (1) Employee Numbers Coherence with the structure of employees in the QNHS (Quarterly National Household Survey the labour force survey) for the same reference period The QNHS includes all employees in the state while the SES includes only those with greater than 3 employees. This is most evident in economic sectors where there are a large proportion of small businesses such as in Retail, Hotels & Restaurants and the Construction industry. The breakdown into fulltime and part-time employment proved problematic in that employers may have stated that the employee was working full-time hours but the employee classified themselves as part time. The NES is calibrated with the QNHS to take account of these factors. However the SES 2010 excludes those working less than 10 hours per week and less than 50 weeks in the year as outlined above. Employees in SES 2010 in comparison to QNHS NACE Rev.2 Sector No. of Employees in SES 2010 sample No. of Employees in SES 2010 Population Sample Fraction QNHS Totals Nos. Nos.* % Nos. B-E Industry 8,795 185,000 5 225,000 F Construction 2,487 55,337 4 65,500 G Wholesale and retail trade 8,753 168,908 5 237,300 H Transporation and Storage 1,956 52,518 4 72,600 I Accommodation and Food Services 2,091 64,806 3 104,200 J Information and communication 2,049 52,228 4 61,400 K-L Financial, insurance, etc. 3,904 75,366 5 90,500 M Professional, scientific & technical 3,472 55,715 6 68,500 N Administrative and support services 1,604 35,515 5 53,000 O Public administration & defence 4,351 88,077 5 102,500 P Education 3,778 106,731 4 143,600 Q Health & social work 7,311 171,615 4 226,000 R-S Arts, entertainment, other services 2,055 45,377 5 $ 73,800 Total 52,606 1,157,194 5 1,523,900 Footnote * Employees in the SES 2010 only include the following: Employees worked 10 or more hours per week Employees worked 50 or more weeks per year $ Includes NACE Sectors R to U Central Statistics Office, Ireland 9
(2) Gross Annual The values for gross annual earnings in the SES 2010 only include employees working 50 or more weeks per year and 10 or more hours per week. The individual employee gross annual earnings are grossed up to the enterprise and then grossed up to the NACE sector. This differs from the EHECS ( Hours and Employment Costs Survey) where the average annual earnings is calculated by dividing the wage costs for the enterprise by the number of employees and grossing this figure up to the NACE Sector to get the quarterly earnings; the average of the four quarterly earnings are then used to compile the average annual earnings. Mean Annual in 2010 by NACE Rev.2 SES 2010 EHECS* NACE Rev. 2 Total annual Total annual earnings earnings Industry (B to E) 42,918 42,196 Construction (F) 37,389 37,150 Wholesale and retail trade; repair of motor vehicles and motorcycles (G) 28,897 26,097 Transportation and storage (H) 39,186 36,686 Accommodation and food service (I) 24,002 16,949 Information and communication (J) 47,149 49,068 Financial, insurance and real estate (K,L) 56,627 51,342 Professional, scientific and technical (M) 43,592 41,597 Administrative and support service (N) 32,333 24,945 Public administration and defence; compulsory social security (O) 45,712 48,755 Education (P) 45,560 43,868 Human health and social work (Q) 36,169 37,909 Arts, entertainment, recreation and other service (R,S) 29,894 25,043 Total 39,114 36,117 Footnote * EHECS ( Hours and Employment Costs Survey; the CSO's Quarterly earnings Survey) Central Statistics Office, Ireland 10