class schemas and employment relations comparisons between the esec and the egp class schemas using...
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Class Schemas and Employment RelationsComparisons between the ESeC and the EGP class schemas using European data
By Erik Bihagen, Magnus Nermo, & Robert EriksonSwedish Institute for Social Research, SOFI, Stockholm University
Bled 29-30 June, 2006
The purpose of this paper
To compare the ESeC schema with the EGP schema.
To what extent are respondents allocated to equivalent classes with the two class schemas?
Compare empirical outcomes related to employment relationships: (1) requirements of specific human capital (SHC)
(2) monitoring problems (MP)(3) age gradients in wage
Theoretical assumptions (for employees)
Both class schemas aims at grouping occupations with similarities in: requirements of specific human capital (SHC) levels of monitoring problems (MP)
Employees are offered long-term benefits by the employer in: Occupations with high requirements of SHC in order to keep
replacements costs low. Occupations characterized by a high level of MP as a way to
keep work incentives high.
Types of employment relationships; Service relationship; high SHC + high MP Labour contract; low SHC + low MP Mixed contract; (low SHC + high MP) or (high SHC + low MP)
Data: The European Social Survey (ESS)ESS round 2 (edition 2) 22 European countries Sample size for employees age 20-60 with valid ISCO
codes 15.772 Class is based on 3 digit ISCO and additional
information on supervisory tasks ESeC is coded using ESeC version 4.0 EGP is coded using a widely used algorithm (based on
ISCO-88) developed by Ganzeboom & Treiman (1996 in Social Science Research)
Relevant measures of employment relations
Table 1. Seven classes of employees in EGP and ESeC
ESeC EGP Employment relationships
1 Higher salariat occupations
I Higher grade Professional etc. Service
relationship2 Lower salariat occupations
II Lower grade Professional etc.
3 Intermediate occupations
IIIa Higher grade routine non-manual
Mixed Contract
6 Lower supervisory and lower technician occupations
V Lower technical, and manual supervisory
7 Lower services, sales and clerical occupations
IIIb Lower grade routine non-manual
Labour contract8 Lower technical
occupationsVI Skilled manual
9 Routine occupations VII Non-skilled manualNote: IIIb is here characterized by a labour contract in accordance with Goldthorpe (2000).
Figure 2. The relative class distributions for Europe (for the 22 countries included in the ESS data)
0
5
10
15
20
25
0
5
10
15
20
25
30
ESEC1/EGP I ESEC2/EGP II ESeC3/EGP IIIa ESeC6/EGP V ESeC7/EGP IIIb ESeC8/EGP VI ESeC9/EGP VII
%
ESeC
EGP
Table 2 Cross-tabulation between EGP and ESeC. All 22 countries included in the ESS data. (percent)
EGP
ESeC I II IIIa V IIIb VI VII
1 high serv
58 9
2 low serv
37 67 16
3 mixed-clerical
8 61 11
6 mixed-supervis
5 15 100 2 14
7 labour-service
17 65 5 7
8 labour-lo tech
86 6
9 labour-routine
6 23 7 74
100 100 100 100 100 100 100
Two dimensions of employment relations in ESS
Specific human capital If somebody with the right education and
qualifications replaced you in your job, how long would it take for them to learn to do the job reasonably well?
Monitoring problems index … how much the management at your work allows
you to decide how your own daily work is organised?
About the work organization… My work is closely supervised
Figure 1. Expected location of ESeC classes according to theoretical assumptions regarding specific human capital and monitoring problems.
ESeC8ESeC7
ESeC6
ESeC3
ESeC2ESeC1
ESeC9
-1
-0,5
0
0,5
1
-1 -0,8 -0,6 -0,4 -0,2 0 0,2 0,4 0,6 0,8 1
Monitoring problems
Spec
ific
hum
an c
apita
l
EGP VII
EGP VI
EGP IIIb
EGP V
EGP IIIa
EGP II
EGP I
ESeC9
ESeC1
ESeC2
ESeC3
ESeC6
ESeC7
ESeC8
-1
-0,5
0
0,5
1
-1 -0,5 0 0,5 1
Figure 3. Location of ESeC and EGP classes according to estimated levels of specific human capital and ‘monitoring problems’ (based on estimates from OLS regressions for a person in the age of 40) for all countries in ESS
ESeC8
ESeC7
ESeC6
ESeC3
ESeC2ESeC1
ESeC9
-1
-0,5
0
0,5
1
-1 -0,8 -0,6 -0,4 -0,2 0 0,2 0,4 0,6 0,8 1
Monitoring problems
Spec
ific
hum
an c
apita
l
EGP VII
EGP VI
EGP IIIb
EGP V
EGP IIIa
EGP II
EGP I
ESeC9
ESeC1
ESeC2
ESeC3
ESeC6
ESeC7
ESeC8
-1
-0,5
0
0,5
1
-1 -0,5 0 0,5 1
Figure 3. Location of ESeC and EGP classes according to estimated levels of specific human capital and ‘monitoring problems’ (based on estimates from OLS regressions for a person in the age of 40) for all countries in ESS
EGP VII
EGP VI
EGP IIIb
EGP V
EGP IIIa
EGP II
EGP I
ESeC9
ESeC1ESeC2
ESeC3
ESeC6
ESeC7
ESeC8
-1
-0,5
0
0,5
1
-1 -0,8 -0,6 -0,4 -0,2 0 0,2 0,4 0,6 0,8 1
Monitoring problems
Spec
ific
hum
an c
apita
l
EGP VII
EGP VI
EGP IIIb
EGP V
EGP IIIa
EGP II
EGP I
ESeC9
ESeC1
ESeC2
ESeC3
ESeC6
ESeC7
ESeC8
-1
-0,5
0
0,5
1
-1 -0,5 0 0,5
Figure 4. Location of ESeC and EGP classes according to SHC and MP for Central Europe (Austria, Belgium, Switzerland, Germany, Luxembourg, Netherlands)
EGP VII
EGP VI
EGP IIIb
EGP V
EGP IIIa
EGP II
EGP I
ESeC9
ESeC1
ESeC2
ESeC3
ESeC6
ESeC7
ESeC8
-1
-0,5
0
0,5
1
-1 -0,8 -0,6 -0,4 -0,2 0 0,2 0,4 0,6 0,8 1
Monitoring problems
Spec
ific
hum
an c
apita
l
EGP VII
EGP VI
EGP IIIb
EGP IIIa
EGP II
ESeC2
ESeC3
ESeC6
ESeC7
ESeC8
Figure 5. Location of ESeC and EGP classes according to estimated levels of SHC and MP for Northern Europe (Denmark, Finland, Iceland, Norway, Sweden)
ESeC8
ESeC7
ESeC6
ESeC3
ESeC2
ESeC1
ESeC9
EGP IEGP II
EGP IIIa
EGP V
EGP IIIb
EGP VI
EGP VII
-1
-0,5
0
0,5
1
-1 -0,8 -0,6 -0,4 -0,2 0 0,2 0,4 0,6 0,8 1
Monitoring problems
Spec
ific
hum
an c
apita
l
EGP VII
EGP VI
EGP IIIb
EGP IIIa
EGP II
ESeC2
ESeC3
ESeC6
ESeC7
ESeC8
Figure 6. Location of ESeC and EGP classes according to estimated levels of SHC and MP for Eastern Europe (Czech Republic, Estonia, Poland, Slovenia, Slovakia, Ukraine)
EGP VII
EGP VI
EGP IIIb
EGP V
EGP IIIa
EGP II
EGP I
ESeC9
ESeC1
ESeC2
ESeC3
ESeC6
ESeC7
ESeC8
-1
-0,5
0
0,5
1
-1 -0,8 -0,6 -0,4 -0,2 0 0,2 0,4 0,6 0,8 1
Monitoring problems
Spec
ific
hum
an c
apita
l
EGP VII
EGP VI
EGP IIIb
EGP IIIa
EGP II
ESeC2
ESeC3
ESeC6
ESeC7
ESeC8
Figure 7. Location of ESeC and EGP classes according to estimated levels of SHC and MP for United Kingdom and Ireland
EGP VII
EGP VI
EGP IIIb
EGP V
EGP IIIa
EGP II
EGP I
ESeC9
ESeC1ESeC2
ESeC3
ESeC6
ESeC7
ESeC8
-1
-0,5
0
0,5
1
-1 -0,8 -0,6 -0,4 -0,2 0 0,2 0,4 0,6 0,8 1
Monitoring problems
Spec
ific
hum
an c
apita
l
EGP VII
EGP VI
EGP IIIb
EGP IIIa
EGP II
ESeC2
ESeC3
ESeC6
ESeC7
ESeC8
Figure 8. Location of ESeC and EGP classes according to estimated levels of SHC and MP for Southern Europe (Spain, Greece, Portugal)
EGP VII
EGP VI
EGP IIIb
EGP V
EGP IIIa
EGP II
EGP I
ESeC9
ESeC1
ESeC2
ESeC3
ESeC6
ESeC7
ESeC8
-1
-0,5
0
0,5
1
-1 -0,8 -0,6 -0,4 -0,2 0 0,2 0,4 0,6 0,8 1
Monitoring problems
Spec
ific
hum
an c
apita
l
The proportion in ESeC 6 and the explanatory power of the ESeC class schema with six different ways of using information on supervisory status
02
468
10
121416
1820
no sup
erviso
r dist
inctio
n, SC
one su
bord
inate
two su
bord
inate
s
three
subor
dinates
four
subor
dinates
five s
ubor
dinate
s
percent in ESeC 6
R2 * 100; MP
R2 * 100; SHC
The location of ESeC 6 depending on the number of subordinates (All 22 Countries)
5 4321
0
-1
-0.5
0
0.5
1
-1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1
monitoring problems
spec
ific
hum
an c
apita
l
Figure 9. Estimated age gradients in hourly wages, Central Europe (Belgium, Switzerland, Germany (ref cat), Luxembourg, Netherlands)
0
5
10
15
20
25
25 30 35 40 45 50 55
age
Eur
o
ESeC 1
ESeC 2
ESeC 3
ESeC 6
ESeC 7
ESeC 8
ESeC 9
Figure 9. Estimated age gradients in hourly wages, Central Europe(Belgium, Switzerland, Germany (ref cat), Luxembourg, Netherlands)
0
5
10
15
20
25
25 30 35 40 45 50 55
age
Eur
o
EGP I
EGP II
EGP IIIa
EGP V
EGP IIIb
EGP VI
EGP VII
Figure 10. Estimated age gradients in hourly wages, Northern Europe (Denmark, Finland, Norway, Sweden (ref cat))
0
5
10
15
20
25
25 30 35 40 45 50 55
age
Euro
ESeC 1
ESeC 2
ESeC 3
ESeC 6
ESeC 7
ESeC 8
ESeC 9
Figure 10. Estimated age gradients in hourly wages, Northern Europe (Denmark, Finland, Norway, Sweden (ref cat))
0
5
10
15
20
25
25 30 35 40 45 50 55
age
Eu
ro
EGP I
EGP II
EGP IIIa
EGP V
EGP IIIb
EGP VI
EGP VII
Figure 11. Estimated age gradients in hourly wages, Eastern Europe (Estonia, Poland (ref cat), Slovakia, Ukraine)
0
0,5
1
1,5
2
2,5
3
3,5
4
25 30 35 40 45 50
age
Eur
o
ESeC 1
ESeC 2
ESeC 3
ESeC 6
ESeC 7
ESeC 8
ESeC 9
Figure 11. Estimated age gradients in hourly wages, Eastern Europe (Estonia, Poland (ref cat), Slovakia, Ukraine)
0
0,5
1
1,5
2
2,5
3
3,5
4
25 30 35 40 45 50
age
Eur
o
EGP I
EGP II
EGP IIIa
EGP V
EGP IIIb
EGP VI
EGP VII
Figure 12. Estimated age gradients in hourly wages, United Kingdom and Ireland (ref cat)
0
5
10
15
20
25
30
35
25 30 35 40 45 50 55
age
Eur
o
ESeC 1
ESeC 2
ESeC 3
ESeC 6
ESeC 7
ESeC 8
ESeC 9
Figure 12. Estimated age gradients in hourly wages, United Kingdom and Ireland (ref cat)
0
5
10
15
20
25
30
35
25 30 35 40 45 50 55
age
Eur
o
EGP I
EGP II
EGP IIIa
EGP V
EGP IIIb
EGP VI
EGP VII
Figure 13. Estimated age gradients in hourly wages, Southern Europe(only Spain)
0
5
10
15
20
25 30 35 40 45 50 55
age
Eur
o
ESeC 1
ESeC 2
ESeC 3
ESeC 6
ESeC 7
ESeC 8
ESeC 9
Figure 13. Estimated age gradients in hourly wages, Southern Europe (only Spain)
0
5
10
15
20
25 30 35 40 45 50 55
age
Eur
o
EGP I
EGP II
EGP IIIa
EGP V
EGP IIIb
EGP VI
EGP VII
Main Findings
Striking similarities between EGP and ESeC; a vast majority allocated in the same basic contracts similarly associated with dimensions of employment
relations have a similar relation to ‘wage dynamics’.
But; EGP V is troublesome in the EGP schema. ESeC 6 is more in
line with our expectations throughout most of our analyses.
The most advantaged class, the higher salariat, in ESeC is smaller, and more distinct when it comes to empirical outcomes.
The explained variation of SHC, MP and wage are somewhat stronger when class is measured by ESeC than EGP.