How to measure quality in labour market transitions?

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

2 INTRODUCTION

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

4 General objective Designing indicators likely to improve and/or supplement existing flexicurity indicators by focusing on four main themes: job quality quality of transition de-segmentation of the labour market life-long learning

5 Specific objectives Designing indicators via an inductive and participatory process Taking into consideration institutional contexts Strengthening the longitudinal perspective Integrating subjective and deliberative aspects

6 Defining flexicurity The 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 in labour market transitions Flexicurity= a policy strategy that encourages positive and quality transitions in a given institutional context

7 The key concepts of flexicurity INPUT (no job/existing job)

8 The key concepts of flexicurity INPUT (no job/existing job) OUTPUT (job quality)

9 The key concepts of flexicurity INPUT (no job/existing job) OUTPUT (job quality)

10 The key concepts of flexicurity INPUT (no job/existing job) OUTPUT (job quality)

11 The key concepts of flexicurity INPUT (no job/existing job) CONTEXT (in which LLL) OUTPUT (job quality)

12 FLEXICURITY INDICATORS

13 Labour market de-segmentation Sum of all positive transitions (towards or within employment) Indicators of: status access to learning income

14 Sum of all positive transitions

15 Sum of all positive transitions

16 De-segmentation indicators T1 T2 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)

17 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 t 1 to t 2 ) Data gathered at the individual level Use of Labour Force Survey (LFS) with panels in all European countries

18 Job quality 2 main sources : Davoine, L. (2007), La qualité de l emploi : une perspective européenne, Phd thesis, Université Paris 1, Panthéon-Sorbonne Muñoz 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)

19 Job quality indicators

20 Job quality Job quality = employment AND work Data gathered at the individual level Proposed inclusion of questions concerning work into LFS => one single source, more reliable than EWCS

21 Quality of transitions Attempt to characterize the process itself between t 1 and t 2, 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 transitions Data gathered at the individual level

22

23 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 actions Perception of security during the transition Possibility of acquiring new skills and experience

24 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)?

25 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 dialogue Data gathered at meso and/or macro levels

26 Contextual dimensions! " $ % & # " ' (% % )*% * & " + *, "

27 PROPOSED OUTPUTS

28 Detailed dashboards with specific indicators De-segmentation of the labour market Job quality Quality of transitions Context (including LLL)

29 Synthesis indicators Basic components Institutional context 1. Labour market de-segmentation 2. Job quality 3. Quality of transitions 4. Development of lifelong learning 5. Extent of social dialogue 6. Activation 7. Decommodification 8. Defamilialisation

30 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 includes A graphic presentation of synthesis indicators (flexicurity radars) allows us to characterize the quality in labour market transitions within a given institutional context (= flexicurity policy)

31 Fictional example

32 CONCLUSION

33 Quality in labour market transitions Job quality Quality of transitions

34 Quality in labour market transitions Job quality Quality of transitions Poor +

35 Quality in labour market transitions Job quality Quality of transitions Poor Painful +

36 Quality in labour market transitions Job quality Quality of transitions Poor Painful + Inefficient

37 Quality in labour market transitions Job quality Quality of transitions Poor Painful + Inefficient High

38 A twofold analytical tool 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, desegmentation or transition quality 2. The synthesis indicators and the calculation of a score for each of them may help both national and EU policy makers to monitor their actions on the labour market

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