Principal component analysis of older people registered as unemployed in public employment offices
Principal component analysis of older people registered as unemployed in public employment offices

Summary/Abstract: The determinants of registering as an unemployed person in the public employment office may be of both a socio-demographic and legal character. Although every individual has their own motivation to register as unemployed, it is still possible to analyse the phenomenon on a group level. The purpose of this study is to show the similarities and differences of older people registering as unemployed and to identify the factors that were key to professional deactivation. The research is based on data from the Polish Central Analytical and Reporting System concerning 1,276,555 people born in the years 1940–1965, who were at least once registered as unemployed in a public employment office. The study uses principal component analysis (PCA) to identify the factors which influence to the largest extent the decision to deactivate professionally. The Kaiser-Meyer-Olkin measure of sampling adequacy and Bartlett’s test of sphericity proved the feasibility of the PCA. The number of principal components was determined on the basis of Kaiser’s criterion. The varimax factor rotation was applied to simplify the relation between the variables and to enhance the interpretation of the obtained results. The analysis included five groups: pensioners, disability pensioners, people who reached retirement age, people who received pre-retirement benefits and the total population. For each group three to four components were identified which combined different variables. Education and occupation in the last place of work formed the only common component for the five groups which influences the most critical decisions in the labour market. This component demonstrates the level of competence and may determine the moment of professional deactivation. The research shows that economic mechanisms are more important than legal conditions in all the analysed groups.

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