ILO Department of Statistics

Measuring Quality of Employment:Sub-dimension 4b – Social Protection

Monica D. CastilloSenior Statistician, ILO Department of Statistics

Email: castillom@ilo.org

Meeting of the Group of Experts on Measuring Quality of EmploymentSeventh session, 11-13 September 2013Palais des Nations, Geneva

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Contents

• Brief introduction to the sub-dimension• Indicators with no or very minor (non-substantial) changes

since 2011• Indicators that have been removed• Indicators with substantial changes• New indicators• Indicator sheets and glossary• Issues for discussion

Brief introduction to Sub-dimension 4b – Social Protection (1)

• Covers:– Small set of indicators on workers that contribute to social protection schemes for

contingencies of old age or unemployment only• Workers contributing to schemes (2 indicators)• Amount of insurance payment (1 indicator)

• Does not cover: – Worker contributions to social protection for contingencies caused by sickness, old age,

survival, and disability (pension); maternity, employment injury, death of a family member (if not long-term benefit or pension);

– Social protection indicators related to a lack of access or unaffordable access to health care

– Social protection indicators on insufficient family support, particularly for children and adult dependants

– Social protection measures related to general poverty and social exclusion.

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Three indicators included:

• 4.b1 Percentage of employed persons contributing to a pension scheme

• 4.b2 Percentage of employees who are active contributors to unemployment insurance

• 4.b3 Mean unemployment insurance payment as a percentage of mean earnings

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Brief introduction to Sub-dimension 4b – Social Protection (2)

Indicators with no or very minor (non-substantial) changes since 2011

Two indicators with minor changes:1) Previous title: Share of employees covered by unemployment insurance

Current title: 4.b2 Percentage of employees who are active contributors to unemployment insurance

– Language changes made for greater concept precision

2) Previous title: Average weekly unemployment insurance payment as a share of average weekly wage

Current title: 4.b3 Mean unemployment insurance payment as a percentage of mean earnings

– Language changes made for greater concept precision and “monthly” is now suggested in the formula (not indicated in the new title) over “weekly”

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Indicators that have been removed since 2011

• Only one indicator removed

• Indicator name: Public social security expenditure as a share of GDP

• Reason: At Nov. 2012 EG meeting, it was decided to remove it from sub-dimension 4b since it is not directly related to the measurement of QE

• Suggestion at last EG meeting: Include as a context indicator (it is now part of the suggested list)

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Indicators with substantial changes• Only one indicator with substantial changes

• Previous title: Share of economically active population contributing to a pension fund

• Current title: 4.b1 Percentage of employed persons contributing to a pension scheme

• Reason: Comments received from reviewers suggested changing EAP to employed persons to be consistent with the QE measurement framework.

• Suggestion: include a new context indicator to cover percentage of EAP contributing to a pension scheme (not yet included)

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New indicators

• No new indicators added to date

• Proposal: suggest for consideration the inclusion of two new indicators for countries where relevant:– Percentage of employed persons who are active contributors to a health insurance

scheme– Percentage of employed persons whose families are covered by a health insurance

scheme through the employed person‘s contribution to the scheme.

• Justification: universal healthcare systems are not available in all states for all workers or their families

• NOTE: Interpretation guidelines should indicate the need to analyse these indicators (if selected by a country) jointly with an indicator on the existence and coverage of a public healthcare system

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Indicator sheets and glossary (1)

• Indicators refer exclusively to contributory social protection schemes for the contingencies of old age and unemployment only– Essential to take into account any existing non-contrib. schemes for a

more complete picture of social protection of employed persons

• Two of three indicators defined only by employed/employee contributors to social protection schemes – thus may present a partial view of scheme contributors

• Different recommended sources for numerator and denominator in 2/3 indicators– Not ideal: potential for differences in coverage, data reference periods, etc.

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Indicator sheets and glossary (2)

• Differences in concept definitions, geo. coverage, coverage of beneficiaries, and reference period will affect int’l data comparability

• EU-LFS: not designed to produce estimates for the calculation of these indicators

• 28 terms are defined in the glossary– Links included– Note included regarding the 19th ICLS where revised draft

standards on labour force and work statistics will be discussed for adoption

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Issues for discussion

• Indicator 4.b1: change to “employed” or keep EAP (or labour force)?

• If 4.b1 is changed to “employed”, ILO recommends adding a new context indicator on “percentage of unemployed persons contributing to a pension scheme”.

• Should we consider adding two new indicators?:– Percentage of employed persons who are active contributors to a health

insurance scheme– Percentage of employed persons whose families are covered by a health

insurance scheme through the employed person‘s contribution to the scheme.

• Should any other social protection indicators for other types of contingencies be covered in this sub-dimension? (e.g. disability, maternity, childcare or family care, employment injury, death?)

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Thank you for your attention

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