Within the social and economic sciences and of particular interest to demographers are life course events. Looking at life sequences we can better understand which states, or life events, precede or are precursors to vulnerability. A tool that has been used for policy evaluation and recently has been gaining ground in life course sequence simulation is dynamic microsimulation. Within this context dynamic microsimulation consists in generating entire life courses from the observation of portions of the trajectories of individuals of different ages.
In this work, we aim to use dynamic microsimulation in order to analyse individual professional trajectories with a focus on vulnerability. The primary goal of this analysis is to deepen upon current literature by providing insight from a longitudinal perspective on the signs of work instability and the process of precarity. The secondary goal of this work which is to show how, by using microsimulation, data collected for one purpose can be analysed under a different scope and used in a meaningful way.
The data to be used in this analysis are longitudinal and were collected by NCCR-LIVES IP207 under the supervision of Prof. Christian Maggiori and Dr. Gregoire Bollmann. Individuals aged 25 to 55 residing in the German-speaking and French-speaking regions of Switzerland were followed annually for four years. These individuals were questioned regarding, amongst their personal, professional and overall situations and well-being. At the end of the fourth wave, there were 1131 individuals who had participated in all waves. The sample remained representative of the Swiss population with women and the unemployed slightly over represented.
Using the information collected from these surveys, we use simulation to construct various longitudinal data modules where each data module represents a specific life domain. We postulate the relationship between these modules and layout a framework of estimation. Within certain data modules a set of equations are created to model the process therein. For every dynamic (time-variant) data module, such as the labour-market module, the transition probabilities between states (ex. labour market status) are estimated using a Markov model and then the possible outcomes are simulated.
The benefit of using dynamic microsimulation is that longitudinal sample observations instead of stylised profiles are used to model population dynamics. This is one of the main reasons large-scale dynamic microsimulation models are employed by many developed nations. There has been limited use, however, of such approaches with Swiss data. This work contributes to the analysis of professional trajectories of the active Swiss population by utilising dynamic microsimulation methods.