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Analytical Framework, Concepts, Definitions, and Classifications
Ad hoc module “Self Employed” was conducted in the framework of the European Union harmonization studies. Eurostat (The Statistical Office of the European Union) envisages the application of different modular surveys in each year together with the household labour force survey (LFS) in order to gather detailed information on various aspects of the labour market. 2017 module is the sixth ad hoc module applied within the LFS framework in Turkey. The first one is in 2007 called "The Research On Accidents at Work and Work-related Health Problems", then "The Research On Entry of Young People into The Labour Market " in 2009, "The Research On The Labour Force Status of Disabled People" in 2011. Then, "Work Accidents and Work-Related Health Problems" was applied in 2013. And finally, "The Research On Entry of Young People into The Labour Market " was applied in 2016.
The objective of this module can be formulated as; the module on self employed aims to provide more detail information about the reasons for starting to work on their own account or as an employer, the difficulties they face, working status in a partnership or business network and future plans for working with employee or subcontractors. In addition, this study also aimed to obtain information on the total employee preferences of labour status and job satisfaction. This research was the first modular survey conducted on this issue.
The concepts and definitions are in parallel with the definitions used in the labour force survey.
Comprises all the population excluding the residents of dormitories of universities, orphanage, and rest homes for elderly persons, special hospitals, prisons and military barracks etc.
Comprises all the non-institutional working age population who are included in the “persons at work” and “not at work” described below.
Persons at work:
Persons engaged in any economic activity during the reference period for at least one hour as a regular employee, casual employee, employer, self employed or unpaid family worker.
Persons not at work:
All self-employed and employers who have a job but not at work in the reference week for various reasons are considered as employed.
Regular employees with a job who did not work during the reference period for various reasons are considered as employed only if they have an assurance of return to work within a period of 3 months or if they receive at least 50% or more of their wage or salary from their employer during their absence. Nonetheless unpaid family workers and casual workers who did not work in the reference week even 1 hour, are not considered as employed.
Apprentices or stajyers who are working to gain any kind of benefit (income in cash or in kind, social security, travelling cost, pocket money etc.) are considered to be employed.
All persons who are currently employed and persons employed in the past are classified according to International Classification on Status in Employment (ICSE, 1993) and the results are published by this classification.
Person who works for an employer for a basic wage paid in kind or in cash.
Person works for a basic wage which is determined independent of the sales or profits of the establishments they work for, in accordance with the written or oral employment contract. This basic wage that is to be paid to the regular employee can be determined according to the time worked or the number of product produced and can be paid in cash or in kind.
Person who work for an employer not in a regular and permanent basis as seasonal or casual employee depending on the nature of job (e.g. construction workers,agricultural workers etc.)
He/She is the person who employs at least one regular employee or one casual employee in his/her own establishment. There might exist more than one person in the form of employer as partners in a establishment. In this case, each partner is accepted as employer.
Person who work in his/her job by himself/herself or with unpaid family workers (without employing a regular or casual employee) for income in cash or in kind are covered in this group. A few partners might work together in an establishment without employing a employee. These partners are defined as self employed.
Unpaid family worker:
Persons who work in market oriented enterprises which is owned by a member of the household but who is not the partner in the enterprise. And those do not earn any income in return for these activities.
In year 2009, economic activities in labour force survey were coded by International Classification of Economic Activities in the European Union (NACE) both by Revision 1 and by Revision 2. From 2010, the use of the Revision 2 was entirely adopted. Starting from the period of January 2010, economic activities have been published by NACE Revision 2 and in order to provide comparability with the same period of previous year, the results of 2009 have also been published by Revision 2.
A Agriculture, forestry and fishing
B Mining and quarrying
D-E Electricity, gas, steam, water supply, sewerage
G Wholesale and retail trade
H Transportation and storage
I Accommodation and food service activities
J Information and communication
K Financial and insurance activities
L Real estate activities
M Professional, scientific and technical activities
N Administrative and support service activities
O Public administration and defense
Q Human health and social work activities
R Arts, entertainment and recreation
S-U Other social, community and personal service activities
All occupations were coded together by using ISCO 88 and ISCO 08 in 2012, while ISCO 08 from 2013 was put into use. Starting from January 2013, according to the classification of occupations ISCO 08 began to be published. To ensure comparability with the same period of the previous year terms in 2012, according to the results of ISCO 08 have also been released.
3 Technicians and associate professionals
4 Clerical support workers
5 Service and sales workers
6 Skilled agricultural, forestry and fishery workers
7 Craft and related trades workers
8 Plant and machine operators and assemblers
9 Elemantary occupations
The educational status of persons is coded according to the International Standard Classification of Education (ISCED, 2011).
2.Less than high school
· Literate without any diploma
· Primary school
· Primary education
· Junior high school or vocational school at high school level
4.Vocational school at high school level
· Institutions of higher education
· Master or doctorate
Persons who are not registered to any social security intuition due to main job worked in reference week are included in this category.
Economically dependent self employed:
He/She is working for as "self employed without employees and has either only one or one clearly dominant client (75% of income) and whose (one or main) client decides the working hours.
They consist of economically dependent workers and paid, salaried and casual employees.
Work with co-owner or in a network:
Self-employed or employers who work as partners are covered by formal or informal business partners, without an obligation relationship, as opposed to employees. They are official partners, having a financial stake in the business and having power in top level decisions. Briefly, another person who shares the risks and the profits of the company. A network is a non-hierarchical group of persons who have regular professional contact, in order to share work, and who mutually benefit from cooperation.
Preferred professional status for the main job:
It covers the general attitudes and behaviours to change the EMPLOYMENT STATUS of the employed persons in their current work, including whether they want such a change. This change does not necessarily stem from a concrete gain or situational enthusiasm, which is done by "everything else is a constant assumption". Person may not want to change his/ her status or he/she is working for as employer or own account, he/she wants to work as regular or casual employee. Or he/she is a regular or casual employee, who wants to work as own account or as an employer. The unpaid family worker may also want to work as own account or an employer.
Main reason for starting to work in the current job as employer and own account:
He/She could not find a job as an employee, his/her former employer requested him/her to become self-employed, the general trend to be that way due to the nature of the job, a suitable opportunity presented itself, continued the family business, did not want to or plan to become self employed but started working as self employed for another reason, wanted to be self employed because of flexible working hours, wanted to be self employed for other reason.
Self perceived main difficulty as self employed:
lack of influence on setting the price of own work, lack of access to financing for the business, customers/clients paying late or not at all, bureaucratic difficulties, no income when become ill, times with little money to live on, times when there is no work to do, other main difficulty and had no difficulties. It is here that the difficulties faced according to one's own perception are entirely in question.
The main reasons why current employees or family workers who wish they were self-employed have not switched to their preferred professional status: Financial insecurity, difficulties with getting financing for the business, too much stress, responsibilities or risk, other reasons.
Reason for why the own account not have any employees:
He/She wants to employ primarily him/herself, there is no enough work, difficult to find suitable staff, high social contributions, not possible to have and employee in the respondent's field, client wants to respondent to do the work and other reasons.
Scope of the Data
Geographical area covered:
In Turkey all individual settlements were considered as universe. Of these settlements those with population 20,001 or more are classified as URBAN and settlements with population 20,000 or less are classified as RURAL.
The target population for this research is determined as aged 15 years and over.
Method of Sampling
For Household Labour Force Survey, two-stage stratified cluster sampling method was used. Based on address, a rotation pattern is formed to ensure a 50% of overlap between two consecutive periods and in the same periods of the two consecutive years and 8 sub samples have been used at each period. In design of the study, sample size has been equally distributed to the weeks, which will be applied in each term. As of 2014, the quarterly survey sample size is 44.000 households. In determining sample volume size Eurostat regulation numbered 577/98 is based on. In design of the study, administrative division of the year 2014 is based on. The estimate size of the study is periodically the whole Turkey, annually is the NUTS Level 2.
Weighting is a method used to obtain parameters from the data set resulting from sampling so as to represent the universe. In the study, while reaching the final weight, the design weights have been calculated depending on the selection criteria; have been controlled for external distribution and corrected for non-responses. In weighting, age group, gender, NUTS Level 2, urban-rural and household size are based on as external control.
The results of this research were weighted using the coefficients calculated for the household labour force survey of related quarter, for these coefficients mid-term population projections (May 15, 2016) were used.
Characteristics of Basic Data Sources
Data were collected from the households which were selected by defined sampling method. Statistical unit used is “household” in labour force surveys. Demographic information (age, sex, educational status, relationship to household head) is asked to all members of the household. But, questions on labour force status are asked for persons 15 years old and over.
Data collection method
All information was collected by interviewers on a face-to-face basis with the help of portable computers (Computer Assisted Personal Interviewing-CAPI).
This modular survey on “Self Employed” was applied together with Household Labour Force Survey in the second quarter of 2017 (April, May and June). The first week of each month starting with Monday and ending with Sunday is used as the reference period for LFS. Nevertheless, the reference period for the questions on employment asked in the modular survey was defined larger and respondents were asked whether they employed in a job with duration of more than 3 months after leaving formal education for the last time.
The survey was implemented in months April, May and June of 2017.
Advance dissemination of release calendar
The results of the survey were announced in December 7, 2017 at 10.00 o’clock through news bulletin and at the same time it is released on the web site both in Turkish and English.
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