Page 447 - Invited Paper Session (IPS) - Volume 2

IPS320 Tine Cordes et al.
Indicator Potential dependency
Only one client or at least 75 percent of Operational or economic dependency
income from the same client during the last of client
12 months

Clients determine working hours fully or in Operational dependency of client
part
Price is set by another company or agent or Economic dependency of client or
by the client other
Former employer encouraged the person to Operational or economic dependency
become self-employed of client

Not enough influence with regards to pricing Economic dependency of client or
work other
Not possible to have employees within field Operational or economic
of work dependency, working conditions
similar to those of employees

Clients want the worker to carry out the work Operational or economic
personally dependency, working conditions
similar to those of employees
Worker is able to influence the content Operational dependency, working
of work-assignments to a lesser extent conditions similar to those of
or not at all employees
Worker is able to influence the order of Operational dependency, working
work-assignments to a lesser extent or not conditions similar to those of
at all employees

Furthermore, we identify questions that may indicate that the worker is an
own-account worker. The idea is that some of these may disqualify the worker
from being a dependent contractor. These indicators are:
1. Typically sets the price charged for products or services
2. Plans to employ people within 12 months
3. Plans to use subcontractors within 12 months
4. Worker is able to influence content of work assignments to a great
extent
5. Worker is able to influence order of work assignments to a great
extent
To assess the strength of the individual indicators in identifying dependent
contractors, we divide all self-employed in the test group into two subgroups:
Workers who might be dependent contractors, and workers who are unlikely
to be dependent contractors. This is done by using information from the core
LFS, such as descriptions of company, activity, occupation, tasks and types of
clients of the worker. This manual division of the workers is then cross-
tabulated with the two sets of indicators.
We also use information from administrative sources (Statistics Denmark’s
Business Register and Income Statistics) to cross-tabulate with the dependent

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