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How to measure quality in labour market transitions? Methodological proposals Audrey Levêque, Jean-François Orianne & François Pichault (University of Liège)

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How to measure quality in labour market transitions?

Methodological proposals 

Audrey Levêque, Jean-François Orianne & François Pichault (University of Liège)

INTRODUCTION

Scope of the presentation

Synthesis of proposals issued from an exploratory study launched by the Belgian Federal Public Service Employment, Labour and Social DialogueProposals validated by a steering committee composed of social partners and experts of the labour market

General objective

Designing indicators likely to improve and/or supplement existing flexicurity indicators by focusing on four main themes:

De-segmentation of the labour marketjob quality transition quality life-long learning

Specific objectives

Designing indicators via an inductive and participatory processTaking into consideration institutional contextsStrengthening the longitudinal perspectiveIntegrating subjective and deliberative aspects

Defining flexicurityThe concept of flexicurity often remains developed at a theoretical and “macro” level (labour market):“A policy strategy that attempts, synchronically and in a deliberate way, to enhance the flexibility of labour markets, work organisation and labour relations on the one hand, and to enhance security – employment security and social security – notably for weaker groups in and outside of the labour market, on the other hand” (Wilthagen & Rogowski, 2002)The challenge: to assess the quality of individual transitions on the labour marketFlexicurity= a policy strategy that encourages positive and qualitative transitions in a given institutional context

The key concepts of flexicurity

OUTPUT(job quality)

INPUT(no job/existing

job)

The key concepts of flexicurity

Quality of transitions

OUTPUT(job quality)

INPUT(no job/existing

job)

The key concepts of flexicurity

De-segmentation

Quality of transitions

OUTPUT(job quality)

INPUT(no job/existing

job)

The key concepts of flexicurity

CONTEXT (in which LLL)

De-segmentation

Quality of transitions

OUTPUT(job quality)

INPUT(no job/existing

job)

FLEXICURITY INDICATORS

Labour market de-segmentation

Sum of all positive transitions (towards or within employment)Data gathered at the individual levelIndicators of:

statusaccess to learningincome

Panel survey needed

Sum of all positive transitions

De-segmentation

De-segmentation indicators

Source: Labour Force Survey

T2

T1

Better status

Equal status

Lower status

Access to training

No access to training

Better income

Equal or lower income

Status:•Inactivity•Unemployment•Fixed-term contract•Open-ended contract

Access to training

No access to training

Income (gross salary and benefits)

De-segmentation

Via a simple regression analysis, we can calculate the probability for any individual in a given context to know a progressive or regressive transition (from t1 to t2)

Use of Labour Force Survey (LFS) with panels in all European countries

Job quality

2 main sources :Davoine, L. (2007), La qualité de l’emploi : une perspective européenne, Phd thesis, Université Paris 1, Panthéon-SorbonneMuñoz de Bustillo, R. et al. (dir.) (2009), Indicators of Job Quality in the European Union, European Parliament (Directorate General for Internal Policies – Policy Department A : Economic and Scientific Policy - Employment and Social Affairs)

Job quality indicators

Job quality

Job quality = employment AND workData gathered at the individual levelWe propose to include questions concerning work into LFS => one single source, more reliable than EWCS

Quality of transitions

Attempt to characterize the process itself between t1 and t2, i.e. between the input and the output of the transition, whatever this transition may be Method: a working group of key experts on the labour market in charge of exploring the transversal dimensions of quality in labour market transitionsData gathered at the individual level

Five main fields of transitions

Quality of transitions: transversal dimensions

Result of a personal choice If not, possibility of anticipating the transition Strong individual support, i.e. efficiency, frequency, non-discrimination, coherence, decentralisation, etc. of accompanying actionsPerception of security during the transitionPossibility of acquiring new skills and experience

Quality of transitions

A set of new questions to integrate into LFS, for example:• ”Were you provided with a regular follow-up

during the transition?”• “If your professional status has changed

during the reference period, did you acquire new skills during this transition (knowledge, know-how, personal skills)?”

Quality in labour market transitions

- +

-

+

Quality of transitions

Job quality

Quality in labour market transitions

- +

- Poor

+

Quality of transitions

Job quality

Quality in labour market transitions

- +

- Poor Painful

+

Quality of transitions

Job quality

Quality in labour market transitions

- +

- Poor Painful

+ Inefficient

Quality of transitions

Job quality

Quality in labour market transitions

- +

- Poor Painful

+ Inefficient High

Quality of transitions

Job quality

Institutional context

In order to avoid meaningless international comparisons, it is important to refer indicators of de-segmentation, job and transition quality to the specific institutional context in which the data were gathered, i.e.:• Lifelong learning (LLL)• Labour market• Social protection• Social dialogueData gathered at meso and/or macro levels

Contextual dimensionsDimensions sub-dimensions sources

LLL Input Eurostat

Process LFS, CVTS

Output AES

Labour market Unemployment, employment and salary

LFS, ESS, OCDE

Labour cost Eurostat

Labour market policies LMP

Social protection Social expenditure Eurostat

Social inclusion and pensions SILC, LFS

Employment protection OCDE

Balance between private life and work

SILC, LFS

Growth Eurostat

Social dialogue ILO

PROPOSED OUTPUTS

Detailed dashboards with specific indicators

De-segmentation of the labour marketJob quality Quality of transitionsContext (including LLL)

Synthesis indicators

Basic components

1. Labour market de-segmentation

2. Job quality3. Quality of transitions

Institutional context

4.Development of lifelong learning

5.Extent of social dialogue6.Activation7.Decommodification8.Defamilialisation

Scoring and radars

Each specific indicator is given a score in accordance with its deviation from the European average (1 – 2 – 3)The value of each synthesis indicator is the sum of the scores obtained for each specific indicator that it includesA graphic presentation of synthesis indicators (flexicurity radars) allows us to characterize the quality of labour market transitions within a given institutional context (= flexicurity policy)

Fictional example

CONCLUSION

1. Thanks to the list of specific indicators, 4 detailed dashboards enable experts to conduct in-depth analyses of flexicurity in a particular Member State in terms of job quality, de-segmentation or transition quality

2. The synthesis indicators and the calculation of the score for each of them may help policy makers to monitor their actions on the labour market

A twofold analytical toolA twofold analytical tool