2 - CONCEPTS AND MEASUREMENTS

Summary

INTRODUCTION

Employment, in the sense in which we use the word in this book, is ‘paid work’. A man paints his own house; that is work, but not employment. Another does the painting, for which money is paid; the work becomes employment. If the money is paid to a firm, which, in turn, pays a wage to the painter, he is employed, pure and simple. If there is no firm, and the money goes into his own pocket, he is self-employed. Our interest in employment is primarily as a means of livelihood. In an economy with extensive division of labour and specialisation, the possibility for most men or women being able to fend entirely for themselves and independently of others is virtually nil. To ensure a livelihood, it is not necessary to keep the same employment, but to have some employment. The appropriate income unit is a household, which may be a single person, but also includes a group of people who live at the same address. Employment and self-employment are not the only sources of income. There is income from property, in the form of rent, interest and dividends. Some ‘private incomes’ provide sufficient for the recipient not to need employment. In 1989 one fifth of the adult population owned some shares, which means that four fifths had none. The main source of income for those seeking employment, but unable to find it, is social security.