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2 nd Meeting of the Task Force on the Measurement of Quality of Employment (28-29 May 2009 Geneva Switzerland). A Validation Study of the Quality of Employment Indicators: work in progress. ISTAT: Francesca Della Ratta, Elisa Marzilli and Federica Pintaldi.
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2nd Meeting of the Task Force on the Measurement of Quality of Employment (28-29 May 2009 Geneva Switzerland) A Validation Study of theQuality of Employment Indicators: work in progress ISTAT: Francesca Della Ratta, Elisa Marzilli and Federica Pintaldi
Quality of Employment: a conceptual framework • Social changes and fast evolution of labour market conditions involve mainly developing countries but reflect also on advanced economies • Quality of employment assumes great relevance • Monitoring and measuring its aspects is becoming even more relevant • Up to now different qualitative aspects of work have generally been measured separately Nevertheless, there are several attempts to wrap them up in a general conceptual framework
Quality of Employment: validation study • This project supports the Task Force • An empirical approach for studying the validity of the indicators • The difficulty to measure the indicators in practice • Completeness/redundancy of the indicators selected • The core of study is the linkages and degrees of correlation among the indicators We will show the work in progress of the validation study in order to refine the list of indicators to measure the Quality of Employment
Validation study: the steps • Comparison the framework Quality of Employment with the framework Decent Work in order to highlight similarities and differences • Review availability of the indicators from several electronic database: Eurostat, ILO, UNECE, World Bank • Proceeding to the operational definition of the indicators in one o more variables • Summary statistics and the relation among indicators to first selection of them • Examination the performance of several indicators using: principal Components Analysis (PCA) for quantitative variables and Multiple Correspondence Analysis (MCA) for legislative indicators • Relation among quantitative and qualitative variables
QE and DW • Fatal occupational injury rate (Workplace fatalities per 100.000 employees) • Non-fatal occupational injury rate (Workplace accidents per 100.000 employees) • Occupational injury insurance coverage • Labour inspection (inspectors per 100.000 employees) • Children working: average weekly hours by age and sex • Occupational segregation by sex/ citizenship • QE • Children not in school by employment status • Share of employees working in "hazardous" conditions • Workplace expenditure on safety improvements as a share of total workplace labour costs • Employed women as a share of total employment • Gender pay gap • DW • Occupational safety and health insurance • Child labour (incl. public policies to combat it) • Forced labour (incl. public policies to combat it) • Female share of employment in ISCO-88 groups 11 and 12 • Anti-discrimination law based on sex of worker, race, ethnicity, religion or national origin
QE and DW • Low pay (share of employed with below ½ of median hourly earnings) • QE • Share of employees entitled to paid annual leave • Average length of paid annual leave • Share of employees paid at minimum wage • Share of employees paid at below minimum wage • DW • Working poor • Statutory minimum wage
QE and DW • Share of employed persons working 49 hrs and more per week • Average annual (actual) hours worked per person • Time-related underemployment rate • QE • % of employed people who usually work at night/evening • % of employed people who usually work on weekend or bank holiday • Share of employed persons working less than 30 hrs per week involuntarily • Ratio of employment rate for women with children under compulsory school age to the employment rate of all women aged 20-49 • Share of women receiving maternity/family leave benefits • Share of men receiving paternity/family leave benefits • DW • Maximum hours of work • Paid annual leave
QE and DW • Percentage of employees with temporary jobs • Percentage of employees with job tenure of less than one year • Public social security expenditure as share of GDP • QE • Share of employees covered by unemployment insurance • Share of economically active population contributing to a pension fund • DW • Share of population aged 65 and above benefiting from a pension • Stability and security of work (developmental work to be done by the Office) • Employment protection legislation • Pension (public / private) • Incapacity for work due to sickness / sick leave • Incapacity for work due to invalidity
QE and DW • Share of employees covered by collective wage bargaining • Union density rate • QE • Rate of days not worked due to strikes and lockouts (per 1000 employees) • Share of employees not covered by strike law • DW • Enterprises belonging to employer organization • Indicator for Fundamental Principles and Rights at Work • Freedom of association and right to organize • Collective bargaining right • Tripartite consultations
QE • Share of employed persons in high skilled occupations • Share of employees who received job training within the last 12 months • Share of employed who have more education than is normally required in their occupation • No indicators proposed
DW • Employment-to-population ratio 15-64 years • Unemployment rate • Youth not in education and not in employment 15-24 years • Informal employment • Government commitment to full employment • Unemployment insurance DW • Children not in school (% by age) • % of working-age population who are HIV positive • Labour productivity (GDP per employed person) • Income inequality (percentile ratio P90/P10) • Inflation rate • Employment by branch of economic activity • Education of adult population • Labour share in GDP
Quality of employment: selection of Countries We selected 25 Countries that are members of UNECE throughseveral criteria • Eurostat data-base: at first we selected a group of 32 countries that belong to the European area • Availability of indicators:only European countries for which the indicators were available • Comparability of indicators:only countries which adopted the same methodology and standard to collect the data • Consistency of employed population:we excluded countries with a number of employed population smaller than 500,000 • Variability:we selected both EU Member States and not-EU Member States
Quality of employment: variables selected Selection of quantitative variables for Principal Component Analysis
Principal Components Analysis: eigenvalue Two main dimensionsunderlying the variables: thefirst principal component explains about 28% of variability The second about 15% The first factorial plane accounts for a large part of totalvariability (43%)
Principal Components Analysis: first component The first componentcan be related to the social protection and skill development On one hand: high share of the adult population aged 25 to 64 participating in education and training, employment people in skilled occupations, and countries with high public social security expenditure. On the other hand: high number of fatal accident, high share of temporary employees with contract less of 12 months, and higher average annual hours worked per person • Other variables didn’tuse in PCA withan unexpected relation: • gender pay gap (0.45) • non fatal accident (0.36) • % involuntary part-time on total part-time (-0.41)
Principal Components Analysis: second component The second componentcan be related to the working time arrangement On one hand: high percentage of employment people who work on Saturday, on Sunday, at evening and at night On the other hand: high share of employed women, a longer length of maternity leave, higher occupational segregation by sex The relation among the indicators related to working time arrangement suggests to use a combination of them
Principal Components Analysis: factorial plane Atypical working hours (+) Social protection and skill development (-) Social protection and skill development (+) Atypical working hours (-)
Quality of employment: legislative indicators Selection of qualitative variables about legislative indicators for Multiple Correspondence analysis
Quality of employment: legislative indicators Working conditions laws are deeply connected to the quality of employment. Therefore, in addition to the quantitative indicators, we considered also some qualitative indicators related to labour market legislation and social protection Most of indicators come from the proposal of the Task Force on the Measurement of Quality of Employment and from the ILO Decent work. We looked at database of Condition of Work and Employment Laws of ILO that contains comprehensive legal information from countries http://www.ilo.org/public/english/protection/condtrav/database/index.htm Other indicators are collected from Doing Business of World Bank. Referring to the dimension Employing Workers we considered only simple indicators (no composite index)
Qualitative indicators: minimum wage Minimum wage has differentmechanisms and levels among countries
Qualitative indicators: working hours The most countries maximum 48 weekly hours but overtimelimits a lot variability
Qualitative indicators: annual leave and fixed-term contract ILO In the most countries there is a maximum duration of fixed-term contracts DB
Qualitative indicators: maternity leave The most countries have more then 14 weeks but differently paid
Qualitative indicators: other variables No or less variability among the 25 countries selected
Multiple correspondence analysis: variables We analysed the more relevant legislative variables collected In same cases we reduced the number of modalities
Multiple correspondence analysis: main results • The first and the second factors explain the 45% of the general variance • The first factor can be related to the labour protection legislation, especially concerning rules in case of redundancies and limit resorting fixed-term contracts • The second factor can be related to the industrial relations system,especially concerning the social dialogue
Multiple correspondence analysis: factor plane Industrial relations systems (-) Labour protection legislation (-) Labour protection legislation (+) Industrial relations systems (+)
Quality of employment: quantitative and qualitative data • To analyse connections between quantitative and qualitative variables we considered jointly first factors obtained with PCA and MCA • The projection of the countries to this factor plan highlights the importance to consider both type of indicators • Quantitative indicators can be better interpreted considering the labour market legislation
Factorial plan: first component of PCA and MCA MCA - Labour protection legislation (+) - + + + PCA - Social protection and skill development (-) PCA - Social protection and skill development (+) - - + - MCA - Labour protection legislation (-)
Quality of employment: quantitative and qualitative data • The maps help to give a quick and easy look to data • Through colours and symbols, maps highlight relationships between labour market legislation indicators and quantitative indicators • For instance, share of employed women can be better interpreted considering the length of maternity leave MAPS
New steps: indicators from Eurostatelaboration 1. Safety and ethics of employment Occupational segregation by citizenship Female share of employment in ISCO-88 groups 11 and 12 2. Income and benefits from employment Low pay (share of employed with below ½ of median hourly earnings) 3. Working hours and balancing work and non-working life Share of employed persons working 49 hrs and more per week Time-related underemployment rate % of employed people who usually work at night/evening % of employed people who usually work on weekend or bank holiday Share of women receiving maternity/family leave benefits (LFS ad hoc module) Share of men receiving paternity/family leave benefits (LFS ad hoc module) 4. Stability and security of work and social protection Incapacity for work due to sickness / sick leave (LFS ad hoc module) Incapacity for work due to invalidity (LFS ad hoc module) 6. Skills development and life-long learning Share of employees who received job training within the last 12 months
New steps: indicators not directly available 1. Safety and ethics of employment Occupational injury insurance coverage Labour inspection (inspectors per 100.000 employees) Children working: average weekly hours by age and sex Children not in school by employment status Share of employees working in "hazardous" conditions Workplace expenditure on safety improvements as a share of total workplace labour costs 2. Income and benefits from employment Share of employees entitled to paid annual leave Share of employees paid at minimum wage Share of employees paid at below minimum wage 4. Stability and security of work and social protection Share of employees covered by unemployment insurance Share of economically active population contributing to a pension fund 5. Social dialogue and workplace relationships Share of employees covered by collective wage bargaining Union density rate Share of employees not covered by strike law
New steps: no indicators proposed 7. Intrinsic nature of work European Working Conditions Survey For instance Q37 How much do you agree or disagree with the following statements describing some aspects of your job? (Strongly agree; Agree; Neither agree nor disagree; Disagree; Strongly disagree; DK; Refusal) A - I might lose my job in the next 6 months B - I am well paid for the work I do C - My job offers good prospects for career advancement D - I feel myself ‘at home’ in this organization E - At work, I have opportunities to learn and grow F - I have very good friends at work Ad hoc module Labour Force Survey
