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Rather than depending on outdated binary classifications or simplistic employment statuses, the authors develop a continuous index based on the Foster-Greer-Thorbecke (FGT) poverty metrics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.

From Static Categories to Dynamic Labor Trajectories

This innovative measure enables the computation of individual “employment detachment” scores and aggregate indices for broader social comparison.

Its major advantage lies in cross-context applicability—allowing researchers and policymakers to analyze differences in labor market attachment across gender, parenthood status, and education levels.

By reflecting the fragmented and flexible realities of modern work—especially for women—the approach opens the door to more dynamic and realistic labor market analysis. It moves beyond static employment indicators to highlight how volatility, insecurity, and discontinuity shape individuals’ work lives.

Evidence from Spain: Gender and Class Inequalities in Focus

Applying this new framework to the Spanish Longitudinal Working Lives Sample (LWLS)—a rich administrative dataset from the Spanish Social Security system—the authors uncover stark patterns.

Results show that women, particularly mothers and those with lower educational attainment, experience significantly higher and more unequal labor market detachment than men.

These findings expose persistent gender and class divides in employment stability and participation. Ultimately, this work provides a powerful tool for both researchers and policymakers to understand labor market vulnerabilities and design more targeted, equitable employment policies.

Author’s affiliation:

• Departamento de Economía, Facultad de CC. Económicas, Empresariales y Turismo, Universidad de Alcalá. Plaza de la Victoria 2, 28802 Alcalá de Henares (Madrid), Spain, e-mail: olga.canto@uah.es
• Departamento de Economía Financiera y Actuarial, Facultad de Economía, Universidad de Valencia. Valencia, Spain, e-mail: amparo.nagore@uv.es
• Luxembourg Institute for Social and Economic Research, LISER, e-mail: marie.valentova@liser.lu