Fuzzy sets applied to create multidimensional indexes. An approach to measure the quality of employment

Abstract

In this paper we compare the analytical implications of two indices to quantify the quality of employment, one synthetic and one based on fuzzy sets. Previous studies emphasize the difficulty of quantifying this concept because it is based on multidimensionality and uncertainty, and lacks an economic backup theory to support its measurement. To execute the comparison, we use an econometric model related to human capital theory, making use of microdata from the Mexican National Survey of Occupation and Employment in the first quarter of 2015. The main discovery is related to the use of fuzzy sets to achieve a more accurate measurement of the quality of employment because it is based on the creation of a continuous data universe and the capacity of handling a larger number of variables.