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115 115  
116 116  27. For the purposes of the measurement of income related to employment for pay, benefits in kind should be valued in terms of the income accruing to the persons in employment for pay. Countries may evaluate these benefits on the basis of retail market prices. When provided free, the value of income in kind is equal to the full value of the goods and services in question. When provided at reduced prices, the value of income in kind is equal to the difference between the full value and the amount paid by the recipient.
117 117  
118 -== Treatment of occupational expenditure of persons in employment for pay ==
118 +==== Treatment of occupational expenditure of persons in employment for pay ====
119 119  
120 120  28. Despite the fact that employees and owner-operators of corporations may incur specific expenses associated with working, which counterbalance part of the wages and benefits received, income related to employment for pay should be recorded gross of workers in employment for pay’s occupational expenditure.
121 121  
122 -== Operational approach to the measurement of income related to employment for profit ==
122 +==== Operational approach to the measurement of income related to employment for profit ====
123 123  
124 -29. In view of the heterogeneity of those in employment for profit and the complexity of measurement of net income of unincorporated enterprises, the measurement of income related to employment for profit should be phased into national programmes of statistics over an extended period of time. In the initial phase, countries should endeavour to identify and measure the income received by two groups of workers in employment for profit:
124 +1. In view of the heterogeneity of those in employment for profit and the complexity of measurement of net income of unincorporated enterprises, the measurement of income related to employment for profit should be phased into national programmes of statistics over an extended period of time. In the initial phase, countries should endeavour to identify and measure the income received by two groups of workers in employment for profit:
125 +11. The first group consists of persons employed for profit operating their enterprises with little or negligible capital input, who produce goods and services in a similar way to employees (such as those engaged in crafts or services, whether in the formal or the informal sector). The income they receive is mostly a return to their labour input and the gross mixed income of the enterprise is a close estimate of net mixed income.
126 +11. The second group consists of persons employed for profit whose activities involve an identifiable amount of capital for the production and generation of income (such as professional workers in the formal sector or workshops in the informal sector). In this case, efforts should be made to quantify the amount of capital used to generate the income and to derive net mixed income. For this purpose, data on the consumption of productive assets (i.e. structures, machinery or equipment, cultivated assets such as trees or animals used to produce other products such as fruit or dairy products, etc.) should, in principle, be collected. Consumption of productive assets may be valued through an estimate of depreciation, according to the business accounting rules in force in each country, or according to the methods contained in the System of National Accounts. Due account should also be taken of the source of data and data collection methods. Where it is not possible to obtain reliable data on consumption of fixed capital from persons in employment for profit, net income related to employment for profit may have to be derived by means of analytical methods.
127 +1. When measuring income related to employment for profit in the informal sector, special attention needs to be paid to the particular circumstances of collecting income data from enterprises in this sector, due account being taken of the guidelines contained in the resolution concerning statistics on the informal economy adopted by the 21st ICLS.
125 125  
126 -* (a) The first group consists of persons employed for profit operating their enterprises with little or negligible capital input, who produce goods and services in a similar way to employees (such as those engaged in crafts or services, whether in the formal or the informal sector). The income they receive is mostly a return to their labour input and the gross mixed income of the enterprise is a close estimate of net mixed income.
127 -* (b) The second group consists of persons employed for profit whose activities involve an identifiable amount of capital for the production and generation of income (such as professional workers in the formal sector or workshops in the informal sector). In this case, efforts should be made to quantify the amount of capital used to generate the income and to derive net mixed income. For this purpose, data on the consumption of productive assets (i.e. structures, machinery or equipment, cultivated assets such as trees or animals used to produce other products such as fruit or dairy products, etc.) should, in principle, be collected. Consumption of productive assets may be valued through an estimate of depreciation, according to the business accounting rules in force in each country, or according to the methods contained in the System of National Accounts. Due account should also be taken of the source of data and data collection methods. Where it is not possible to obtain reliable data on consumption of fixed capital from persons in employment for profit, net income related to employment for profit may have to be derived by means of analytical methods.
129 +==== Choice of method for recording income related to employment for profit ====
128 128  
129 -30. When measuring income related to employment for profit in the informal sector, special attention needs to be paid to the particular circumstances of collecting income data from enterprises in this sector, due account being taken of the guidelines contained in the resolution concerning statistics on the informal economy adopted by the 21st ICLS.
131 +1. The choice of an accounting technique to measure income related to employment for profit should take into account the circumstances in which those employed for profit operate their business and the measurement objective. Two major techniques can be used:
132 +11. Accruals accounting, which measures the profit earned during the reference period, by taking into account receipts and expenses relevant to that period, irrespective of whether or not they have actually been received or defrayed. This technique measures the profitability or economic performance of the enterprise and, as such, could be favoured when the objective is to measure the income-generating capacity of jobs for profit. It is also the approach favoured by the SNA.
133 +11. The cash-flow technique, which measures actual cash received (including the value of production for own use) and paid out (including the value of production given out free or at reduced prices) during the reference period. This technique provides a better indicator of the amounts of income actually available to workers in employment for profit to meet living expenses. Where data on employment-related income are furnished by those in employment for profit themselves in the absence of business accounts, it is generally easier for them to provide a simple summary of cash received and paid in the assessment period (i.e. gross receipts minus expenditure).
134 +1. These different techniques may produce different results. In determining the method used to record income related to employment for profit, consideration should be given to the procedures recommended by national tax authorities, the sources of data and the methods of data collection.
130 130  
131 -== Choice of method for recording income related to employment for profit ==
136 +==== Valuation of own production consumed by workers in employment for profit ====
132 132  
133 -31. The choice of an accounting technique to measure income related to employment for profit should take into account the circumstances in which those employed for profit operate their business and the measurement objective. Two major techniques can be used:
134 -
135 -* (i ) Accruals accounting, which measures the profit earned during the reference period, by taking into account receipts and expenses relevant to that period, irrespective of whether or not they have actually been received or defrayed. This technique measures the profitability or economic performance of the enterprise and, as such, could be favoured when the objective is to measure the income-generating capacity of jobs for profit. It is also the approach favoured by the SNA.
136 -* (ii) The cash-flow technique, which measures actual cash received (including the value of production for own use) and paid out (including the value of production given out free or at reduced prices) during the reference period. This technique provides a better indicator of the amounts of income actually available to workers in employment for profit to meet living expenses. Where data on employment-related income are furnished by those in employment for profit themselves in the absence of business accounts, it is generally easier for them to provide a simple summary of cash received and paid in the assessment period (i.e. gross receipts minus expenditure).
137 -
138 -32. These different techniques may produce different results. In determining the method used to record income related to employment for profit, consideration should be given to the procedures recommended by national tax authorities, the sources of data and the methods of data collection.
139 -
140 -== Valuation of own production consumed by workers in employment for profit ==
141 -
142 142  33. The part of goods and services produced and consumed by workers in employment for profit and their family members should be valued in terms of the basic prices of similar products sold on the market or of their cost of production if no suitable basic prices are available, as defined in the SNA. In the absence of these prices, retail market prices could be used. Such consumption of own production is similar to payments in kind received by workers in employment for pay.
143 143  
144 -== Treatment of losses of workers in employment for profit ==
140 +==== Treatment of losses of workers in employment for profit ====
145 145  
146 146  34. Jobs for profit may, over a given reference period, produce a financial loss instead of income or profit. Losses should be reflected in the measurement of income related to employment for profit and evaluated as negative income.
147 147  
148 -= Statistical units =
144 +=== Statistical units ===
149 149  
150 -35. Two basic observation units are relevant to the measurement of income related to employment for pay or profit, depending on the objective pursued: the job and the individual person.
146 +1. Two basic observation units are relevant to the measurement of income related to employment for pay or profit, depending on the objective pursued: the job and the individual person.
147 +1. For the measurement of the income-generating capacity of different economic activities, the //job, //as defined in ICSE, is the basic entity on which information is to be collected and analysed. Jobs can be for pay or for profit, which can be characterized by industry, occupation and employment status, coded at the most detailed level of national or international classifications.
148 +1. When the objective is the analysis of the employment-related well-being of the population concerned, the desirable unit is the //individual person. //The individual is also relevant when analysing the relationship between employment-related income and educational achievements, seniority in employment, work duration, etc. An individual may be engaged in a single job, have multiple jobs in employment for pay or for profit, or own and operate more than one unincorporated enterprise, simultaneously or consecutively within a given reference period. From the individual's standpoint, employment-related income corresponds to the sum of all incomes generated by all jobs as well as income from former employment.
151 151  
152 -36. For the measurement of the income-generating capacity of different economic activities, the //job, //as defined in ICSE, is the basic entity on which information is to be collected and analysed. Jobs can be for pay or for profit, which can be characterized by industry, occupation and employment status, coded at the most detailed level of national or international classifications.
150 +=== Reference period ===
153 153  
154 -37. When the objective is the analysis of the employment-related well-being of the population concerned, the desirable unit is the //individual person. //The individual is also relevant when analysing the relationship between employment-related income and educational achievements, seniority in employment, work duration, etc. An individual may be engaged in a single job, have multiple jobs in employment for pay or for profit, or own and operate more than one unincorporated enterprise, simultaneously or consecutively within a given reference period. From the individual's standpoint, employment-related income corresponds to the sum of all incomes generated by all jobs as well as income from former employment.
152 +1. In measuring income related to employment for pay and for profit, account should be taken of the seasonal variations which affect the receipt of income, the fluctuations in work intensity of individuals, and the possible combination of multiple activities and periods of activity and inactivity of the population concerned. For this purpose, income related to employment for pay and for profit should be measured over a long reference period, such as a full year.
153 +1. For data collection purposes, shorter reference periods, such as a month or a quarter, may be used. Different activities and jobs may require different reference periods, such as a month
155 155  
156 -= Reference period =
155 +for regular fulltime employment for pay, complemented by data on additional annual receipts, or a crop season in agricultural employment for profit. For analytical purposes, data on employment-related income referring to short reference periods should be aggregated over the long reference period mentioned above.
157 157  
158 -38. In measuring income related to employment for pay and for profit, account should be taken of the seasonal variations which affect the receipt of income, the fluctuations in work intensity of individuals, and the possible combination of multiple activities and periods of activity and inactivity of the population concerned. For this purpose, income related to employment for pay and for profit should be measured over a long reference period, such as a full year.
157 +=== Data requirements ===
159 159  
160 -39. For data collection purposes, shorter reference periods, such as a month or a quarter, may be used. Different activities and jobs may require different reference periods, such as a month for regular fulltime employment for pay, complemented by data on additional annual receipts, or a crop season in agricultural employment for profit. For analytical purposes, data on employment-related income referring to short reference periods should be aggregated over the long reference period mentioned above.
159 +1. For the measurement of the income-generating capacity of different jobs, there should be consistency between the data on employment in a given job and the data on income generated by that job. Data should therefore be collected on: (i) the characteristics of the job (industry, occupation, employment status), type of enterprise (individual enterprise, partnership, corporation, etc.), employment size and sector (e.g. informal or formal sector, public or private sector); (ii) the volume of labour input in the job (duration of employment and time worked); and (iii) the amount of income generated by that job.
160 +1. In order to analyse the relationship between employment and the well-being of individuals, data are needed for each person: (i) separately on the main and any additional jobs carried out during the reference period; (ii) the income derived from each of these jobs; (iii) the socio-economic characteristics of individuals: age, sex, education and skill level, etc.; and (iv) any spells of unemployment or periods of being out of the labour force that an individual may have experienced during the given reference period.
161 161  
162 -= Data requirements =
162 +=== Measurement of working time in employment ===
163 163  
164 -40. For the measurement of the income-generating capacity of different jobs, there should be consistency between the data on employment in a given job and the data on income generated by that job. Data should therefore be collected on: (i) the characteristics of the job (industry, occupation, employment status), type of enterprise (individual enterprise, partnership, corporation, etc.), employment size and sector (e.g. informal or formal sector, public or private sector); (ii) the volume of labour input in the job (duration of employment and time worked); and (iii) the amount of income generated by that job.
165 -
166 -41. In order to analyse the relationship between employment and the well-being of individuals, data are needed for each person: (i) separately on the main and any additional jobs carried out during the reference period; (ii) the income derived from each of these jobs; (iii) the socio-economic characteristics of individuals: age, sex, education and skill level, etc.; and (iv) any spells of unemployment or periods of being out of the labour force that an individual may have experienced during the given reference period.
167 -
168 -= Measurement of working time in employment =
169 -
170 170  1. One of the requirements of the measurement of employment-related income is that the part of the income directly generated by a job be related to the working time which has gone into that job. Income and employment data should therefore refer, or be convertible, to the same period.
171 171  1. For each job, working time should be, expressed in the number of hours, days, weeks, etc., during which the activity has been carried out. Where the activity is carried out by several contributing family workers and income is the result of a joint labour input (e.g. in household enterprises), efforts should be made to measure the number of hours, days, weeks, etc., worked by each member.
172 172  1. At the individual level, employment-related income should be measured for each job carried out during the reference period, whether in employment for pay or for profit, together with the corresponding labour input in each activity. During a one-year reference period, individuals may be, for different periods, employed, unemployed and out of labour force during which some or no employment-related income accrues. Each of these periods should be identified, account being taken of all jobs performed, including casual or simultaneous employment. The main situations may be classified into broad categories relevant to the measurement of employment-related wellbeing (or hardship).
173 173  
174 -== Measurement of hours of work ==
168 +==== Measurement of hours of work ====
175 175  
176 176  1. The measurement of hours of work is dealt with in the resolution concerning the measurement of working time adopted by the 18^^th^^ ICLS in 2008. The working time concepts defined in this resolution are relevant for the measurement and analysis of employmentrelated income, and countries should aim at applying them to produce working time
177 177