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Social Indicators Research
Published in: Social Indicators Research 1/2014

01-08-2014

Challenges in Constructing a Multi-dimensional European Job Quality Index

Authors: Janine Leschke, Andrew Watt

Published in: Social Indicators Research | Issue 1/2014

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Abstract

There are few attempts to benchmark job quality in a multi-dimensional perspective across Europe. Against this background, we have created a synthetic job quality index (JQI) for the EU27 countries in an attempt to shed light on the question of how European countries compare with each other and how they are developing over time in terms of job quality. Taking account of the multi-faceted nature of job quality, the JQI is compiled on the basis of six sub-indices which cover the most important dimensions of job quality as identified in the literature. The paper addresses the methods used to construct the JQI and make it comparable over time. It presents the results for 2010 and briefly addresses changes over time to illustrate the potential and limits of a multidimensional European JQI. It also considers alternative specifications for various sub-indices and tests for the impact of changes in the indicators used on the outcomes. Overall, the findings appear to confirm the feasibility and desirability of attempting to assess job quality by means of a composite index that can be periodically updated. The key strength of this approach is the possibility to monitor and benchmark EU countries’ overall job quality performances and the outcomes in six sub-dimensions of job quality and compare them with each other, across gender and over time. At the same time, the limitations of such a composite index need to be borne in mind. The most important challenges are the availability (over time), timeliness and periodicity, comparability and disaggregation of data.
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Appendix
Available only for authorised users
Footnotes
1
The Laeken indicators go well beyond the issue of job quality in that they include, for example, information on employment, education and child-care, while at the same time, since they were inevitably the result of political compromise, they disregard important dimensions of job quality such as wages. Furthermore, they are not assembled into a single index that would allow EU countries to be benchmarked in terms of job quality.
 
2
For a discussion on the disadvantages of using a single measure such as the declared level of satisfaction with one’s job see Muñoz de Bustillo et al. 2011.
 
3
Indeed, the validity of distinguishing between objective and subjective characteristics has been questioned recently (Eurofound 2012).
 
4
Further disaggregation, particularly by level of education and sector of employment would be useful, but is not possible across all 6 dimensions of the JQI.
 
5
Expressed mathematically the formula for indicator i and country a is: (valueia−mini)/(maxi−mini).
 
6
The working poor measure is available by gender; however, due to the fact that this measure is based on a household concept, for this analysis we use the national totals only.
 
7
It is important to reiterate that we consider in this sub-index only those part-time workers who were unable to find a full-time job. We do not take account of part-time workers who are working part-time due to the fact that they are looking after children or incapacitated adults or because of other family and personal responsibilities. Adopting the latter option would have increased the gender differences even further.
 
8
In order to structure the presentation of the data, we make frequent reference to clusters of countries based loosely on the classification developed in the wake of the seminal work by Esping-Andersen (1990) and refinements of this approach (Ferrera 1996; Esping-Andersen 1999). We distinguish between the Nordic (or social democratic) countries (Denmark, Finland, Sweden), the Anglo-Saxon (or liberal market) countries (UK and Ireland), the Continental (or Conservative/Corporatist) countries (Austria, Belgium, France, Germany, Netherlands, Luxembourg), the Southern European (or Mediterranean) countries (Greece, Portugal, Spain, Italy), and the Central and Eastern European countries (Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia). For a fuller discussion in the context of job quality, the reader is referred to Leschke and Watt 2008b (28ff.) where analysis showed a considerable relevance of such clusters, particularly for the Nordic and Anglo-Saxon countries, to some degree for the Continental group, and rather less so for the southern countries, alongside quite considerable divergence within the Central and Eastern European country group.
 
9
For a detailed analysis of changes over time in the four indicators that make up this sub-index refer to Leschke et al. 2012, Sect. 5 .
 
10
The extent of skills development is not independent of the extent and formalisation of initial education which differs between European countries. We try to take account of this, to some extent at least, by restricting the training data to the adult population.
 
11
To some extent the UK ranking may reflect comparatively poor initial education and training systems which are then compensated for via more frequent training courses during working life; as noted, data restrictions mean that duration and quality of training are not covered.
 
12
Due to changes in the EWCS, the indicator of workers’ involvement in decisions on work organisation had to be dropped, however.
 
13
These are all countries where the trade unions have an important responsibility in the payment of welfare benefits, and particularly the unemployment benefit system (Ghent system).
 
14
A small adjustment is made to allow for the fact that the average score across all countries on each of the sub-indices varies somewhat; for instance, the average score is rather higher than the notional average of 0.5 in the case of wages and rather lower for skill development. This adjustment ensures that equal significance is given to all six elements.
 
15
However there are a few exceptions. In Malta, Luxembourg and Bulgaria the improvement in the JQI and in Lithuania the deterioration was due solely to women. In the Czech Republic the improvement was almost only amongst men. In Spain and Hungary, while overall job quality rose for men, it fell for women; Slovenia experienced the reverse (not shown).
 
16
In the case of Ireland, the improvement in ‘wages’ largely reflects the fact that, while in Europe as a whole the share of working poor—which is 30 % of the sub-index—rose, in Ireland it fell. This may also be a compositional effect (job losses at the bottom, income losses at the top of the wage distribution).
 
17
Since the publication of the first JQI, we have benefited from the feedback of numerous colleagues at academic conferences and on other occasions and have discussed the advantages and disadvantages of certain choices.
 
18
NACE sectors B to N. If the coverage of sectors is extended (B–S) the number of missing countries is so high as to make any comparison dubious.
 
19
For an in-depth study on this item of the working conditions survey refer to Fagan et al. (2011).
 
20
Indeed, looking at the raw data, in all Nordic countries the response behaviour of men and women is equal whereas in most other countries women are more likely to respond positively to this variable.
 
21
These items are as follows: “Does your job involve handling angry clients?”, “Do you know what is expected of you at work?”, “Does your job involve tasks that are in conflict with your personal values ?”, “Does your job require that you hide your feelings ?”, “If you make mistakes at work, could it cause physical injuries to people?”, “If you make mistakes at work could it cause financial loss of the company” (Eurofound 2010).
 
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Metadata
Title
Challenges in Constructing a Multi-dimensional European Job Quality Index
Authors
Janine Leschke
Andrew Watt
Publication date
01-08-2014
Publisher
Springer Netherlands
Published in
Social Indicators Research / Issue 1/2014
Print ISSN: 0303-8300
Electronic ISSN: 1573-0921
DOI
https://doi.org/10.1007/s11205-013-0405-9

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