View the indicators and measures for Domain 4: Financial security and dignified work: Inequality in the capability to achieve financial independence and security, enjoy dignified and fair work, and recognition of unpaid work and care.
Description
The capability to be financially secure and enjoy financial independence is an important element of well-being. In addition, economic inequalities play a key role in shaping inequalities in other life domains. Measures include income and wealth inequality, rates of poverty and material deprivation, income insecurity and financial resilience, including measures designed to capture advantage as well as disadvantage. This domain also covers aspects of work; an important element of well-being not just because it provides an income but because workers can enjoy a range of non-pecuniary benefits. Inequalities include differences in working conditions and unequal access to the top jobs.
Measurement considerations
Key measures of economic inequality in earnings, income and wealth, which include measures of advantage (concentration of income and wealth among a few) and disadvantage (income poverty, incidence of low pay, over-indebtedness) are included in this domain. Measures include overall dispersion of income, earnings and wealth, financial resilience, income security and volatility, and social mobility.
Obtaining accurate measure of child labour is challenging as there is no internationally agreed measure. One of the issues that requires consideration is time children spend on non-economic family productive activities, including household chores and care roles, which tend to be shouldered disproportionately by girls in many cultures, and therefore excluding them may understate girls’ involvement in child labour. UNICEF, ILO and the World Bank (Understanding Children’s Work collaboration) have made some progress in establishing a standard quantitative measure (Ritualo et al., 2003) and other work has suggested the use of children’s subjective responses rather than adult’s which can be biased (Dillon, 2010).
Measuring forced labour is also challenging but some progress has been made (Ruwanpura and Rai, 2004). The ILO define forced labour as "all work or service which is exacted from any person under the threat of a penalty and for which the person has not offered himself or herself voluntarily."
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| Sub-domains: | ||
| Achieve financial security and resilience against shocks | ||
Indicator:
Income inequality, income security and financial resilience Measures:
Relative income inequality - Gini (or a measure of dispersion such as 90/10 or Palma ratio) - household equivalised disposable income Concentration of income at the top - top income shares (top 10%/5%/1%) Relative income poverty - income <60% median equivalised disposable income Reference: UN SDG:
1.1.1
Proportion of population below the international poverty line, by sex, age, employment status and geographical location (urban/rural) 1.2.1
Proportion of population living below the national poverty line, by sex and age 1.2.2
Proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions 10.2.1
Proportion of people living below 50 per cent of median income, by sex, age and persons with disabilities Rate of absolute income poverty: (a) against a fixed poverty line; (b) material deprivation Reference: UN SDG:
1.1.1
Proportion of population below the international poverty line, by sex, age, employment status and geographical location (urban/rural) 1.2.1
Proportion of population living below the national poverty line, by sex and age 1.2.2
Proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions Precariousness of household income: (a) income volatility; (b) perceptions of income insecurity Reference: UN SDG:
1.3.1
Proportion of population covered by social protection floors/systems, by sex, distinguishing children, unemployed persons, older persons, persons with disabilities, pregnant women, newborns, work-injury victims and the poor and the vulnerable Rate of over-indebted households (debt/income ratio) Percentage of households with high-cost, short-term loans (eg pay-day loans) | ||
| Enjoy financial independence and control over personal spending | ||
Indicator:
Financial independence, control over resources and financial inclusion Measures:
Intra-household division of income Percentage of women with equal control over household budget Percentage with bank account Reference: UN SDG:
8.10.2
Proportion of adults (15 years and older) with an account at a bank or other financial institution or with a mobile-money-service provider | ||
| Evidence of excess financial accumulation and financial advantage in the control and ownership of resources | ||
Indicator:
Inequality in private ownership of financial assets and resources Measures:
Wealth inequality: (a) concentration - top wealth shares (top 10%/5%/1%); (b) overall inequality (such as Gini or decile ratios); (c) homeownership and housing wealth Concentration of land ownership Reference: UN SDG:
1.4.2
Proportion of total adult population with secure tenure rights to land, with legally recognized documentation and who perceive their rights to land as secure, by sex and by type of tenure 5.A.1
(a) Proportion of total agricultural population with ownership or secure rights over agricultural land, by sex; and (b) share of women among owners or rights-bearers of agricultural land, by type of tenure 5.A.2
Proportion of countries where the legal framework (including customary law) guarantees women's equal rights to land ownership and/or control | ||
| Have equal access to paid work, job opportunities, productive assets and markets | ||
Indicator:
Access to work Measures:
Percentage of working age in paid work (employment or self-employment) Unemployment rate: (a) ILO rate; (b) unemployment benefit claimant rate Reference: UN SDG:
8.5.2
Unemployment rate, by sex, age and persons with disabilities Percentage of young people (15-24 years) not in education, training or employment Reference: UN SDG:
8.6.1
Proportion of youth (aged 15-24 years) not in education, employment or training
Indicator:
Earnings inequality (income from work) Measures:
Earnings inequality - Gini or percentile ratio - Annual/ monthly/ weekly/ hourly (depending on availability) Earnings volatility Low pay rate - Less than 2/3rd median hourly wage High pay rate - greater than 2/3rd median hourly wage | ||
| Evidence of unequal pay and access to the highest paid work opportunities | ||
Indicator:
Social mobility, unequal pay and unequal access to the top jobs Measures:
Social mobility (social class, earnings, income) Perceptions of equal opportunity and social mobility Percentage of women working in top professions Reference: UN SDG:
16.7.1
Proportions of positions (by sex, age, persons with disabilities and population groups) in public institutions (national and local legislatures, public service, and judiciary) compared to national distributions 5.5.2
Proportion of women in managerial positions Gender, disability and racial pay gaps Reference: UN SDG:
8.5.1
Average hourly earnings of female and male employees, by occupation, age and persons with disabilities Percentage of privately educated in top professions (managerial and professional, politicians, top civil service jobs, CEOs on boards, non-executive directors, high-ranking officers in the military) Gender and racial occupational segregation Reference: UN SDG:
16.7.1
Proportions of positions (by sex, age, persons with disabilities and population groups) in public institutions (national and local legislatures, public service, and judiciary) compared to national distributions | ||
| Enjoy good working relations and dignified and fair work conditions | ||
Indicator:
Employment relations and conditions Measures:
Percentage working in the informal sector Reference: UN SDG:
8.3.1
Proportion of informal employment in non-agriculture employment, by sex Percentage employed on: (a) part-time contracts; (b) temporary contracts; (c) Zero hours contract; (d) without a contract Workplace injury rate Reference: UN SDG:
8.8.1
Frequency rates of fatal and non-fatal occupational injuries, by sex and migrant status Percentage of workers experiencing job strain Percentage of workers who enjoy autonomy at work (tasks, start and leave time, breaks) Percentage of workers with opportunities for promotion in current job Inequality in job satisfaction | ||
| Protection from forced labour and exploitative conditions | ||
Indicator:
Forced labour and child labour Measures:
Evidence of forced labour Evidence of child labour Reference: UN SDG:
8.7.1
Proportion and number of children aged 5-17 years engaged in child labour, by sex and age | ||
| Enjoy equal division of care and un-paid domestic work | ||
Indicator:
Distribution of care, domestic duties and home production Measures:
Average time spent on: (a) domestic duties; (b) caring for others; (c) home production Reference: UN SDG:
5.4.1
Proportion of time spent on unpaid domestic and care work, by sex, age and location Time-related under-employment | ||