the oecd job quality framework: defining, measuring and assessing job … · 2018-11-07 ·...
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THE OECD JOB QUALITY FRAMEWORK:
DEFINING, MEASURING AND ASSESSING
JOB QUALITY AND ITS LINKS WELL-BEING
Hande Inanc, OECD Statistics Directorate
INGRID Summer School, 9-13 May 2016
Quality of Working Life and Vulnerabilities
HOW GOOD IS YOUR JOB? MEASURING AND ASSESSING JOB QUALITY
OECD Better Life Initiative
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From how many jobs to how good jobs are... -Laeken indicators (2001)
-BUSINESSEUROPE’s Job Quality Indicators (2001)
-ETUI’s job quality index (2008)
-EMCO’s job quality measure (2010)
-Eurofound’s Job Quality index (2012)
-UNECE’s handbook for Measuring Quality of Employment (2014)
-OECD’s Job Quality Framework (2015*)
*Launched in 2013
• G20 Labour Ministers’ Declaration (Sep 2015, Ankara): “Quality jobs are important as a key driver of greater well-being for individuals and society”
• G20 Leaders Summit (Nov 2015, Antalya): “improving job quality among three dimensions, namely promoting the quality of earnings, reducing labour market insecurity and promoting good working conditions and a health society”
The importance of job quality in the policy debate
1. What makes a quality job?
The OECD Job Quality Framework
OECD project on job quality, labour market
performance and well-being
• Aim: to bring job quality to the forefront of the policy debate on
economic performance, i.e. labour market performance should be
assessed in terms of more and better jobs
• Why job quality matters?
– key element of individual well-being (i.e. an end in its own right)
– determines worker commitment and productivity (i.e. as a means to
better economic performance)
• So far limited attention to job quality in policy debate due the
difficulties of defining and measuring it
– Multi-dimensional nature of job quality
– Comparability of job quality indicators over time, across countries and
groups
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Challenges: • Conceptual: job quality is multi-dimensional
– what are the key dimensions? What is the relationship between these dimensions? How each of these dimensions affects people’s well-being?
• Measurement: job quality measures should be outcome-based, i.e. work as experienced by workers rather than procedures
– Both material (“work-related economic security”) and immaterial aspects (“quality of life at work”)
– Analysis should be both static (point-in-time) and dynamic (transitions, persistence)
• Perspective: Micro (focus primarily on the quality of outcomes for each person)
– Requires analysing not only average, but also distribution
– Requires looking at the role of workers, jobs, firms, environmental characteristics
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OECD project on job quality, labour market
performance and well-being
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Job quality, job quantity and well-being
Labour market
security
Quality of the
work environment
Well-being
Labour market performance
Earnings
quality
Employment /
unemployment
Job quantity Job quality
Under-employment
2. Measuring Job quality
2.1 Earnings quality
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Measuring Earnings Quality:
• Earnings quality captures the extent to which earnings contribute
to workers' well-being in terms of average earnings and
their distribution across the workforce.
Average earnings
-> measured as hourly earnings in
constant prices, at constant PPPs
Earnings Inequality
-> Measured using generalised means
framework (Atkinson, 1970)
-Allows giving more weight to the bottom
of the distribution, thereby taking account
of both the level and its distribution
Earnings Quality
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• Life satisfaction increases with the level of earnings
– Holds both across countries as well as between persons within
countries
• For a given level of average earnings, overall well-being
tends to be higher the more equal its distribution
– Life satisfaction rises at a decreasing rate with earnings
(“saturation effect”)
– People tend to display an intrinsic dislike of high inequality in
society (“inequality aversion”)
Earnings quality should take account of
both average earnings and its distribution
Earnings Quality in the OECD countries
Note. The data refer to: 2012 for France, Italy, Poland, Spain and Switzerland; and 2010 for Estonia, Luxembourg, Netherlands, Slovenia and Turkey. Generalized means
approach is used as an aggregation tool to compute earnings quality measures, assuming a high inequality aversion.
Source: OECD Job Quality database (2016).
PPP-adjusted gross hourly earnings in USD, 2013 or latest year available
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
0
5
10
15
20
25
30
35
40
Earnings quality Average earnings Earnings inequality (right axis)
USD, PPPs %
2. Measuring Job Quality
2.2 Labour market (in)security
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Measuring labour market (in)security:
Unemployment risk and insurance
• Labour market security captures those aspects of economic
security related to the risks of job loss and its economic cost for
workers. It is defined by the risks of unemployment and benefits
received in case of unemployment.
Unemployment risk
- probability of becoming unemployed
- probability of staying unemployed
-> measured using data on unemployment
inflows and outflows
Effective unemployment insurance
- accessibility of benefits
- their generosity and maximum duration
- the progressivity of the tax system
->use OECD benefit-recipiency database
and OECD taxes-benefits models
Expected cost of unemployment
15
Unemployment risk and insurance have
important implications for well being
Estimated effects of unemployment risk on life satisfaction and the
compensating effects of effective unemployment insurance.
Note. The well-being effect is measured in terms of standard deviations in life satisfaction.
Source: OECD Employment Outlook 2014. OECD estimates based on the European Union Statistics on Income and Living Conditions (EU-SILC) and the
European Social Survey,
Labour market insecurity in the OECD countries
Note. Data on Chile refers to 2011 instead of 2013.
Source: OECD Job Quality database (2016).
Risk of becoming unemployed and its expected cost as a share of previous earnings, 2013
0
10
20
30
40
50
60
70
80
90
100
0
5
10
15
20
25
30
35
40
Labour market insecurity Unemployment risk Unemployment insurance (right axis)
% %
2. Measuring Job quality
2.3 Quality of the working environment
Measuring quality of the working environment
OECD’s approach to Quality of Working Environment
• Job demands aspects of the job that require sustained physical
and psychological efforts
• Job resources refer to those job attributes that lead to personal
accomplishment or that are instrumental in achieving work
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• Depends on balance between job demands which impair health
and job resources which mitigate their effects
Measuring quality of the working environment
Job demands
- time pressure
- physical health risks
- (emotional demands)
- (workplace intimidation)
Job resources
- work autonomy & learning
- social support at work
- (good management practices)
- (task clarity)
Index of job strain
combination of excessive job demands & insufficient resources
that increases risk of health impairment
Measuring quality of the working
environment
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Job strain, as the result of…
… too many job demands … and too few job resources
Time
pressure
Work usually more than 50 hours per week
Difficult to take an hour or two off during working
hours for personal or family matters
Work at very high speed and to tight deadline
Work
autonomy
and learning
opportunities
Can choose or change the order of tasks
Can choose or change methods of work
Job involves learning new things
Employer provided training or on-the-job
training
Physical
health risk
factors
Tiring and painful positions
Carrying or moving heavy loads
Exposed to vibrations from hand tools, machinery
Exposure to high noise
Exposure to high or low temperature
Social
support at
work
Colleagues help and support
Managers help and support
Workplace
intimidation
Verbal abuse
Threats and humiliating behaviours
Bullying or harassment
Good
management
practices
Well-defined work goals
Feedbacks from manager
Manager good at planning and organising
work
Quality of the working environment in
the OECD countries
Note. Data on Turkey are based on results of the 2005 European Working Conditions Surveys (EWCS).
Source: OECD Job Quality database (2016) based on the 6th European Working Conditions Survey (Forthcoming) for 2015 and International Social Survey Program
Work Orientations Module III for 2005.
Incidence of job strain, 2015
0
10
20
30
40
50
60
70
80
Job strain Excessive demands Insufficient resources%
EU countries Other OECD countries (2005)
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Job strain and physical health (I): ‘My work impairs my health’
0
10
20
30
40
50
60
High demandsLow resources
High demandsHigh resources
Low demandsLow resources
Low demandsHigh resources
%
Source: OECD Calculations using the EWCS 5th Wave
Job strain and physical health (I): ‘My work impairs my health’
0
10
20
30
40
50
60
70
80
90
IRL
GB
R
NLD IT
A
BE
L
FIN
DE
U
TU
R
DN
K
LUX
FR
A
SW
E
NO
R
ES
P
PR
T
AU
T
CZ
E
SV
K
GR
C
PO
L
HU
N
ES
T
SV
N
All workers Workers in strained jobs
Source: OECD Calculations using the EWCS 5th Wave
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Job strain and physical health (II): ‘total number of days absent from work for reasons of health
problems?’
0
1
2
3
4
5
6
7
8
9
10
11
12
High demandsLow resources
High demandsHigh resources
Low demandsLow resources
Low demandsHigh resources
Number of days
Source: OECD Calculations using the EWCS 5th Wave
Job strain and physical health (II): ‘total number of days absent from work for reasons of health
problems?’
0
5
10
15
20
25
30
IRL
GB
R
NLD IT
A
BE
L
FIN
DE
U
TU
R
DN
K
LUX
FR
A
SW
E
NO
R
ES
P
PR
T
AU
T
CZ
E
SV
K
GR
C
PO
L
HU
N
ES
T
SV
N
All workers Workers in strained jobs
Source: OECD Calculations using the EWCS 5th Wave
Specific dimensions of ‘subjective well-
being’
http://www.oecd.org/statistics/guidelines-on-measuring-subjective-well-being.htm
“Good mental states, including all of the
various evaluations, positive and negative,
that people make of their lives, and the
affective reactions of people to their
experiences.”
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Job demands and SWB
3.7
3.8
3.9
4.0
4.1
4.2
4.3
4.4
4.5
Workpressure
Physical health risk factors
Workplaceintimidation
Positive affect
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Workpressure
Physical health risk factors
Workplaceintimidation
Negative affect
0102030405060708090
100
Workpressure
Physical health risk factors
Workplaceintimidation
Job Satisfaction
*Dark bars represent ‘high demands’ in each dimension
Source: EWCS 2010
Positive affect: Felt cheerful/good spirits,
calm/relaxed, active/vigorous last 2 weeks
Negative affect: Feel stress at work
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Job resources and SWB
0102030405060708090
100
Workautonomy
Task clarity Management practices
Colleagues support
Job Satisfaction
3.8
3.9
4.0
4.1
4.2
4.3
4.4
4.5
4.6
Workautonomy
Task clarity Management practices
Colleagues support
Positive affect
2.7
2.8
2.8
2.9
2.9
3.0
3.0
3.1
3.1
Workautonomy
Task clarity Management practices
Colleagues support
Negative affect
Source: EWCS 2010
Positive affect: Felt cheerful/good spirits,
calm/relaxed, active/vigorous last 2 weeks
Negative affect: Feel stress at work
*Dark bars represent ‘high resources’ in each dimension 28
• Job quality has increasingly became a prominent topic in policy debate
• Its link with worker well-being is more and more appreciated by policy makers
• Significant improvement in defining and measuring job quality
• Data needs: comparably and timely international data
Summary
On average, a person from an OECD country spends 37 hours a week at work, and an increasingly larger share of their adult lives in paid-work. Therefore, work is strongly related to the quality of individuals’ lives and their well-being. Moreover, quality jobs are an important driver of increased labour force participation, productivity and economic performance. The OECD has developed a framework to measure and assess the quality of jobs that considers three objective and measurable dimensions. Together, they provide a comprehensive assessment of job quality. Earnings quality captures the extent to which earnings contribute to workers' well-being in
terms of average earnings and their distribution across the workforce. Labour market security captures those aspects of economic security related to the risks of
job loss and its economic cost for workers. It is defined by the risks of unemployment and benefits received in case of unemployment.
Quality of the working environment captures non-economic aspects of jobs including the nature and content of the work performed, working-time arrangements and workplace relationships. These are measured as incidence of job strain characterised as high job demands with low job resources.
Just released! New data show importance of quality as well as quantity of jobs and how both evolved during crisis
The project is a joint undertaking between the OECD Directorate for Employment, Labour and Social Affairs and the OECD Statistics Directorate. Tools Key findings: How good is your job? Measuring and assessing job quality (PDF) Job Quality Database Inventory on the Quality of the Working Environment For more information News Release: http://www.oecd.org/employment/the-crisis-has-had-a-lasting-impact-on-job-quality-new-oecd-figures-show.htm Job Quality page: http://www.oecd.org/employment/job-quality.htm Video: What is a good quality job?
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OECD Job Quality Database
OECD Inventory on the Quality of the
Working Environment
