decent work as a measure of social progress: discussion about indicators model for performance...

Decent work as a measure of social progress:

Discussion about indicators model for performance analysis of government policies

Ronaldo Baltar, Cláudia S. Baltar 1ISA Forum - Buenos Aires, 2012

Ronaldo BALTARUniversidade Estadual de Londrina, Londrina/PR, Brazil

Cláudia Siqueira BALTARNEPO/UNICAMP, Campinas/SP, Brazil

Paper presented at The Second ISA Forum of Sociology – “Social justice and democratization”, Buenos Aires, Argentina August 1-4, 2012 - Group “Measuring and Monitoring Social Progress: RC55 Social Indicators”, Wednesday, August 1, 2012: 9:15 AM, Faculty of Economics, TBA; Session Organizer: Heinz-Herbert NOLL, Chair: Heinz-Herbert NOLL

AbstractSecond ISA Forum of SociologyWednesday, August 1, 2012: 9:15 AMFaculty of Economics, TBARonaldo BALTAR , Ciências Sociais, Universidade Estadual de Londrina, Londrina/PR, BrazilCláudia BALTAR , Demografia, NEPO/UNICAMP, Campinas/SP, Brazil

Over the last decade, the International Labour Organization (ILO) has promoted initiatives to stimulate worldwide commitments to the "Decent Work Agenda", based on respect for the statements expressed in the Declaration of Fundamental Principles and Rights at Work. Several governments in South America, especially Brazil, have developed national programs that agree the Decent Work Agenda as a means to economic and social development. Having this context in view, this paper aims to analyze how an index developed to measure decent work can also measure changes in quality of life, social progress and national development. Brazil is taken as a reference point in order to measure the variables, using the RAIS / CAGED data bases, maintained by Brazilian Ministry of Labor and Employment (MTE), and the census of IBGE (Brazilian Institute of Geography and Statistics). The study seeks to define a model that correlates selected dimensions of decent work, like provision of suitable jobs for men and women, the extension of social

Ronaldo Baltar, Cláudia S. Baltar ISA Forum - Buenos Aires, 2012 2

selected dimensions of decent work, like provision of suitable jobs for men and women, the extension of social protection, a fair day's wage for a fair day's work, among others, with the variables that measure social progress and quality of life. This paper discusses the methodological implications of this model in comparison to some different proposals for indicators disseminated by the International Labour Organization (ILO). The central question discusses how the different dimensions of decent work can be integrated into an index for monitoring the development and social progress. Along with a theoretical and methodological discussion, it is intended to advance the creation of indicators that can effectively monitor the performance of policies and government actions for promoting decent work as a way to attain social progress, which may serve as a tool for comparison, analysis and questioning of social development at national and regional levels.

Section: Measuring and Monitoring Social Progress IResearch Comite: RC55 Social Indicatorshttp://isaconf.confex.com/isaconf/forum2012/webprogram/Paper26251.html

PROGRESS OF HUMAN INDICATORS

IN BRAZIL

Brazil`s recent changes

ISA Forum - Buenos Aires, 2012 3

Regions of Brazil

Region Population Largest City States GDP (US$ bi)

North 15.8 million Manaus 7 96.2

Northeast 53.5 million Salvador 9 237.1

Central-West 13.6 million Brasilia 3 + F.D. 174.3


Central-West 13.6 million Brasilia 3 + F.D. 174.3

Southeast 80.7 million São Paulo 4 803.0

South 27.3 million Curitiba 3 313.8

IFDM by States of Brazil, 2009

Firjan's Municipal Development Index (IDFM) is a Human Development index similar to HDI


Human Development Index: Trends 1980 - present


Source: UNDP – UN < http://hdrstats.undp.org >

households below the extreme poverty threshold in Brazil (families living with less than U$35.00 per capita/mo)

1.500.000

2.000.000

2.500.000

3.000.000

CW

S

N


0

500.000

1.000.000

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N

SE

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Source: Pnad/IBGE, Brazil

Ratio of the richest 20% to the poorest 40% in Brazil

15

20

25

S

N

SE


Source:Instituto de Pesquisa Econômica Aplicada (Ipea) Pnad/IBGE, Brazil

0

5

10

2005 2006 2007 2008 2009

SE

NE

CW

DECENT WORK

INTERNATIONAL LABOUR ORGANIZATION


Inequality in Emerging Economies

What Role for Labour Market and Social Policies?

“China and India grew at annual rates which reached two-digit levels in the years prior to the crisis. Economic

growth in Brazil and South Africa was more volatile during the past decade but still impressive. As a result, all

four countries have experienced substantial increases in GDP per capita, reducing the gap with OECD countries. However, despite the impressive growth spurts, convergence in GDP per capita


with OECD countries is still a distant target . In India , GDP per capita is still only 8% of the

OECD average, in China it is 16%, while in Brazil and South Africa it is about 25 %. But economic growth is only part of the story . Globalisation has also generated imbalances, both between and within countries. Strong economic growth has helped to reduce extreme poverty significantly in China, India and Brazil, and to a lesser extent in South Africa. But inequalities in income and consumption have increased since the early 1990s, even though Brazil has been very successful in reducing income inequality over the past 10 years

and, more recently, China has also seen a decrease of inequality.”

OECD Conference Centre, Paris, 19 May 2010OCDE (2010).

What are the ILO Decent Work Agenda goals?

• an economy that generates opportunities for investment, entrepreneurship, skills development, job creation and sustainable livelihoods.Creating Jobs

• to obtain recognition and respect for the rights of workers. All workers, and in particular disadvantaged or poor workers, need representation, participation, and laws that work for their interests.

Guaranteeing rights at work


• to promote both inclusion and productivity by ensuring that women and men enjoy working conditions that are safe, allow adequate free time and rest, take into account family and social values, provide for adequate compensation in case of lost or reduced income and permit access to adequate healthcare.

Extending social protection

• Involving strong and independent workers’ and employers' organizations is central to increasing productivity, avoiding disputes at work, and building cohesive societies.

Promoting social dialogue

Six-step cycle of Decent Work Country Program (DWCP)


Example of Decent Work Country Program (DWCP) implementation in Americas

•UNDAF approved by the Government in Nov. 2009. Decent Work is specifically included as one of the UNDAF (and MDG) objectives.

•CEB Toolkit for Mainstreaming Employment and Decent Work is specifically included as one of the identified UN tools for monitoring UNDAF execution.

•DW Provincial Programs

•Tripartite consultations for the preparation of the third DWCP (2012-2015) started in Feb. 2012.

Argentina


• Has a National Agenda for Decent Work, and will also sign a National Plan for Decent Work in August 2012, during the National Conference on Decent Work.

•Both documents were designed, and will be implemented, by tripartite constituents, with the ILO support.

•Decent Work is specifically included as one of the UNDAF objectives for the country.

•DW States Programs

Brazil

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How to measure Decent Work?

Ronaldo Baltar, Cláudia S. Baltar

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HOW TO COMPARE ALL

DIMENSIONS OF DECENT WORK?

Principal Component Analysis


Microlevel


Source: Kantor, Rani, Unni (2006)

GHAI`s Indicators and variables

Employment Employment OpportunitiesOpportunitiesEmployment Employment

OpportunitiesOpportunities

Labour force participation

rate

Female labourforce

participation

Adequate Adequate Earnings and Earnings and productiveproductive


PovertyPoverty -- % of % of pop. pop.

Decent Decent HoursHours

Decent Decent HoursHours

Equal Equal opportunity opportunity

and and treatment in treatment in employmentemployment



% % WomanWomanAdministrators & Administrators &

managersmanagers

Social Social SecuritySecurity

Social Social SecuritySecurity

Public social Public social security security

expenditure expenditure as % of GDPas % of GDP

Social Social dialoguedialogue


Civil liberties Civil liberties index (1997)index (1997)

Union Union membership membership


GHAI (2003)

Employment-to-population

ratio

unemployment rate

Ginicoefficient

pop. pop. <US$14.40 <US$14.40

PPP/day per PPP/day per personperson

Human Human development development

indicatorsindicators

managersmanagers

% Woman % Woman Professional & Professional &

technicaltechnical

Woman Woman Earned Earned incomeincome

membership membership as proportion as proportion

of of employees, 1employees, 1

995995

Patterns of decent work performance


GHAI (2003)

GHAI’s Decent Work Ranking

Country

Gender

disparities Employment

Social

Dialogue

Social

Protection

Average

ranking

Overall

rankingSweden 1 1 1 1 1.0 1

Denmark 8 2 2 2 3.5 2

Norway 2 3 4 6 3.8 3

Finland 2 10 3 3 4.5 4

Austria 12 5 9 9 8.8 5

Germany 11 9 13 5 9.5 6

Canada 5 8 10 19 10.5 7

Belgium 16 16 5 7 11.0 8

United Kindgdom 5 15 12 13 11.3 9

Luxembourg 22 7 8 11 12.0 10


GHAI (2003)

Luxembourg 22 7 8 11 12.0 10

Switzerland 15 5 19 10 12.3 11

Netherlands 16 13 14 8 12.8 12

Portugal 10 12 14 17 13.3 13

Australia 8 14 11 21 13.5 14

Italy 19 18 7 12 14.0 15

Japan 13 3 18 22 14.0 15

New Zeland 7 17 16 16 14.0 15

United States 4 11 21 20 14.0 15

Ireland 14 22 6 18 15.0 19

France 18 19 22 4 15.8 20

Greece 21 20 16 14 17.8 21

Spain 20 21 20 15 19.0 22

PCA ANALYSIS APPLIED TO DW

INDICATORS

Dealing with different dimensions


ILO-Brazil Indicators and variables

Employment Employment OpportunitiesOpportunitiesEmployment Employment

OpportunitiesOpportunities


rate

Female labour force participation

by gender



Poverty rate

Economic Economic and social and social ContextContext

Economic Economic and social and social ContextContext

GDP variation2004 to 2009

School rate 15 to 17yo





AverageWage_bygender

Stability and

security of work

Stability and

security of work

Formal Job Rate Total



Union Union membership membership as proportion as proportion of employeesof employees


ILO BRAIZIL (2012)

by gender


by race

RatioPoorest_to_Richies

GDP PERCAPITA variaton 2004 to

2009

% of Poor Workers

literacy_Rate

Ileteracyfunctional rate

AVG years of study

Average Wage byrace

Youthunemployment

Formal Job Rate bygender

Formal Job Rate byrace

Data preparation (correlation matrix)

Acre Alagoas Amapá Amazonas Bahia CearáDistrito Federal

North NorthEast North North NorthEast NorthEast CentralWest

Security_Job_Rate_Man X -0,3207281 -0,7094021 -0,3751424 -0,3595955 -0,9348331 -1,0203414 1,55268086

Security_Job_Rate_Woman X -0,0065652 -0,4497155 0,56953025 -0,3433594 -1,016948 -1,078989 1,97874834

Security_Job_Rate_Whites X 0,14428146 -0,4671797 0,57822166 0,13441919 -1,4238206 -1,2561619 1,94907819


Security_Job_Rate_Whites X 0,14428146 -0,4671797 0,57822166 0,13441919 -1,4238206 -1,2561619 1,94907819

Security_Job_Rate_Blacks X -0,2331883 -0,6336159 -0,0713133 -0,3609844 -0,8295698 -1,0340435 1,76894959

Wage_Man X 0,34094351 -0,9505004 0,01545766 -0,3074033 -0,9216266 -1,0817446 3,46980751

Wage_Woman X 0,95998942 -0,5530903 0,27891003 -0,0268017 -0,777537 -0,9594161 3,99001871

Wage_Whites X 0,8451368 -0,5996598 0,00907442 0,04948831 -0,5617718 -1,0391609 4,17170526

Wage_Blacks X 0,95715436 -0,9103216 0,67365801 0,11116524 -0,8653222 -1,0858194 3,79661786

PCA – ALL DIMENTIONS


Variable (loadings) PC1 vs PC2

0,244-0,24

0,334

PC

2 (2

4,9%

)

Youth_unemploymeYouth_unemploymeYouth_unemploymeYouth_unemployme

Youth_unemployme


-0,31

PC1 (49,6%)

PC

2 (2

4,9%

)

Part_Rate_Man

Part_Rate_Whites

Part_Rate_Total

Part_Rate_Blacks

Part_Rate_Woman

Sample (scores)

5,143Alagoas

Paraíba

Maranhão

Pernambuco

Rio de Janeiro


7,830-6,21

-3,52

PC1 (42,6%)

PC

2 (1

6,9%

)

Distrito FederalPiauí

Santa Catarina

São Paulo

Bahia

Cluster all variables


PCA – CONTEXT VARIABLES


PC1 vs PC2 (context variables)

0,394-0,36

7,766E-02

PC

2 (1

6,7%

)

literacy_Rate

Security_Job_Rat


-0,56

PC1 (50,5%)

PC

2 (1

6,7%

)

GDP_VAR_2004_200

GDP_PERCAPITA_VAUnion_Rate Wage

AVG_years_of_stuIleteracy_func_r

SCHOOL_RATE_15_1

PCT_Workers_Poor

PC1 vs PC2 sample scores

2,735Alagoas São Paulo

Rio de Janeiro

Santa Catarina

Paraná

Mato Grosso


5,468-4,89

-2,52

PC1 (50,5%)

PC

2 (1

6,7%

)

Distrito FederalPiauí

Paraíba

Maranhão

Cluster variables without discrimination factors


Barbosa, Marcos. Map of South America and Brazilhttp://flinkas.deviantart.com/gallery/?q=mapa+brasil#/d4oleya

ILO (2008): “Measurement of Decent Work”: tripartite meeting of experts on measurement of decent work, 8-10 Sept. ILO-Geneva, 2008.

ILO Decent Work Country Programmes: A Guidebook, version 3. ILO-Geneva, 2011. <http://www.ilo.org/public/english/bureau/program/dwcp/download/dwcpguidebookv3.pdf >

GUIMARÃES, José Ribeiro Soares. Perfil do Trabalho Decente no Brasil: um olhar sobre as Unidades da Federação. Brasília: OIT, 2012.

OCDE. Tackling Inequalities in Brazil, China, India and South Africa: The Role of Labour Market and Social Policies. OECD Publishing, 2010.

Source and Bibliography

Ronaldo Baltar, Cláudia S. Baltar

Paula Kantor, Uma Rani, Jeemol Unni. Decent Work Deficits in Informal Economy: Case of Surat. Economic and Political Weekly. May 27, 2006.

Standing, G (2002): ‘From People’s Security Surveys to a Decent Work Index’, International Labour

Review, 141(4)

Anker, R (2002): ‘People’s Security Surveys: An Outline of Methodology and Concepts’, International Labour

Review, 141(4)

GHAI, Dharam (2003): Decent work: Concept and indicators. International Labour Review , 142 (2)


decent work as a measure of social progress: discussion about indicators model for performance...

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