The impact of atypical employment on the European demography

Since the 1990s general employment insecurity has significantly increased in Europe. In addition to unemployment, the number of atypically employed, like part-time, fixed-term, or self-employed, has disproportionately grown. This atypical employment is mostly non-voluntary and precarious. According to Labour Force Survey of Eurostat, the share of atypical employment (other than permanent full-time) has surpassed 40% in 10 of 27 Member States. The crisis of 2008 has deteriorated the situation further. Besides personal disadvantages, atypical employment implies also negative consequences at the macro level. In this paper, we analyze the impact of atypical employment on four factors: inequality, size of middle class, fertility, and migration. We characterize the situation in European countries for years 2000, 2005, and 2010 with the following variables: (1) % of atypical employment in the total employment; (2) inequality, measured by the Gini-coefficient; (3) size of middle class, measured in the ratio of 7-9 deciles to 2-4 deciles; (4) fertility, in number of children per woman (in the lifetime); and (5) migration, in % of migration during the reference year 2000. It is shown with statistical certainty that EU member states with high percentages of atypical employment suffer from the following problems: high levels of inequality; high levels of migration; failing numbers defined as middle class; and falling fertility rates. The paper argues that these trends are becoming more salient over time. We predict that the situation will worsen if the growth of atypical employment continues.