Job Quality in Turkey between 2005 and 2010 HIVA-KU Leuven Adrien - PowerPoint PPT Presentation

Job Quality in Turkey between 2005 and 2010 HIVA-KU Leuven Adrien FRONTENAUD PhD candidate in international economics, ÉRUDITE, University of Paris-Est Mame-la-Vallée (UPEM), Institute for Labour Studies and Public Policies (Tepp institute, FR n°3126 CNRS).

Definition of Emerging Countries (1) • According to Julien Vercueil (2012), more than 50 countries, economies, and/or political entities comprise the emerging markets of the world contributing over 60 percent of the world’s population and at least 45 percent of its gross domestic product (GDP). Brazil, Russia, India, China, Mexico, Indonesia, Turkey , and Poland are among the largest emerging market economies.

Definition of Emerging countries (2) • Emerging economies have as common traits: - implementing economic reforms; - stabilizing the political climate; - shifting balance of economic power from sellers to buyers.

Emerging countries sample s and Losch (2008) criteria Source: Reslinger (2013), adapted to Gabas et Losch (2008). — — Source: Reslinger (2013), adapted to Gabas et Losch (2008). — Vercueil (2012) criteria : GDP per capita between 10 and 70% of GDP per capita of OECD members (PPP).

Aims • Construct a job quality index in Turkey in 2005 and 2010. • Why? Because I want to compare: - Over time - Between countries - Between formal and informal workers - Between educational level • What kind of index ? How can I construct this index ? Exploration of 5 different indexes

Job Quality: new approach From 1999 : the broadly concept of Decent Work (ILO). • Quality of employment seems to be associated with the • multidimensional operationalization of the political objective of decent work (Osterman 2013; Burchell et al. 2014). Macro-institutional comparisons with the concept of QoE • (Gallie 2007; Goos, Maning and Salomons 2009; Green et al. 2013).

Job Quality: an interpretation of labor institutions

9 Dimensions of Job Quality in Turkey Nine dimensions are included by using EWCS data: • 1) Income Level 2) Ergonomic risks 3) Bio-chemical risks 4) Ambient risks 5) Fixed workplace 6) Work Time and Family Time 7) Stability 8) Flexibility 9) Other job

5 approaches to job quality Job Characteristics Preferences Aspirations Fully Subjective Job Quality ü ü ü Indicator Fully Objective Job Quality ü Indicator (Equal Weights) Two-level factor analysis ü Average Preference Objective +/- ü Job Quality Indicator Equivalent Income Job ü ü Quality

Option 1. Fully subjective job quality index � : fully subjective job quality , which is self-reported individual — �� � job satisfaction. — This subjective approach takes into account that workers can have different preferences for certain job characteristics. — For example: two workers with similar preferences for well-paying, meaningful jobs might still rate the job quality differently, due to different aspirations rooted in parental class background.

Option 2. Fully objective job quality index � , �� : fully objective job quality , constructed from equally- — �� � weighted job characteristics. — It is an example of a normative weighting approach . — All dimensions are of equal importance. — Fully objective job quality indicator does not take into account individual preferences nor aspirations.

Option 3. Second Stage Factor analysis STAGE 2 STAGE 1 MCA Factor Analysis Variables Dimensions Factor Analysis Job quality index Are you exposed 1) Ergonomic risks at work to: 1) Vibrations from hand tools, machinery, etc.? Does your main job involve: 2) Painful or tiring positions 3) Carrying or moving heavy loads

Second Stage: Factor analysis (1) Factor Eigenvalue Difference Proportion Cumulative 0,66607 0,6530 0,6530 Factor1 1,59698 Factor2 0,93091 0,38584 0,3807 1,0337 Factor3 0,54507 0,41347 0,2229 1,2566 Factor4 0,13160 0,09737 0,0538 1,3104 Factor5 0,03423 0,10528 0,0140 1,3244 Factor6 -0,07105 0,11101 -0,0291 1,2954 Factor7 -0,18206 0,02527 -0,0744 1,2209 Factor8 -0,20733 0,12562 -0,0848 1,1361 Factor9 -0,33294 . -0,1361 1,0000

Second Stage: Factor analysis (2) Rotated factor loadings (pattern matrix) and unique variances Variable Factor1 Uniqueness Bio Chemical Risks 0,7016 0,5078 Ergonomic Risks 0,6418 0,5881 Ambient Risks 0,7731 0,4023 Fixed Workplace 0,162 0,9738 Standard Working 0,1451 0,9789 Time Having another Job -0,004 1 Flexibility 0,1082 0,9883 Stability 0,029 0,9992 Wage 0,188 0,9647

Option 4. Average preference objective job quality index � , � : Average preference objective job quality, which uses a — �� � regression coefficients interacted with group characteristics as weights. — Dependent variable (Job satisfaction) = Independent variables (job characteristics + worker characteristics + interaction). — Assume preferences ~ worker characteristics (age, gender, education). — Average preference JQ: simulate JS with (fixed) mean worker characteristics.

Option 5. Equivalent income job quality index �� : Equivalent income job quality, which “puts a price on job — �� � quality”, assuming that an individual is willing to trade his salary for a basket of job characteristics. — The general idea is that (worker preferences for) job characteristics can be reformulated in terms of equivalent income, i.e. the wages of a worker is willing to trade for better (worst) job characteristics. — We create a counterfactual by changing (fixing) the job characteristics and then restore the equation by adjusting the wage variable.

Indifference curve D A Y

D C B A Y

D B A Y

Figure: Equivalent incomes Source: Schokkaert, E., Ootegem, L. V. & Verhofstadt, E. (2011). Preferences and Subjective Satisfaction: Measuring Well-being on the Job for Policy Evaluation. CESifo Economic Studies, 57(4), 683-714.

5 approaches to job quality J ob Characteristics Preferences Aspirations ü ü ü Fully Subjective J ob Q uality index Fully O bjective J ob Q uality index ü (EqualW eights) Average Preference O bjective J ob ü +/- Q uality index ü ü Equivalent Income J ob Q uality ü Two-level factor analysis

Graphic Job Quality correlations HIVA-KU Leuven, December 07 3

Spearman's rank correlation coefficient between job quality indexes Factor Fully Fully Equivalent Average preference analysis job subjective job objective job income job objective job quality quality quality quality quality Factor analysis job 1 quality Fully subjective job 0,15 1 quality Fully objective job 0,22 1 0,84 quality Average preference 0,43 0,30 0,69 1 objective job quality Equivalent income job 0,35 0,31 0,58 0,89 1 quality

Employment status types according to job quality indexes Equivalent Factor analysis Fully subjective Fully objective Average preference Status income job job quality job quality job quality objective job quality quality 0,064 0,139 0,320 0,504 0,423 Contract -0,041 -0,085 -0,039 -0,150 -0,139 No contract Self- 0,004 0,003 -0,198 -0,210 -0,157 employed

Summary of education according to Job Quality indexes Factor analysis Fully subjective Fully objective Average preference objective Equivalent income Education job quality job quality job quality job quality job quality 0 0,22 -0,68 -0,39 -0,74 -0,65 1 -0,18 -0,22 -0,31 -0,42 -0,39 2 -0,26 -0,03 -0,31 -0,31 -0,26 3 0,09 0,04 0,13 0,14 0,17 5 0,42 0,36 0,73 0,93 0,73 ISCED codes: 0) Pre-primary education 1) Primary education or first stage of basic education 2) Lower secondary or second stage of basic education 3) (Upper) secondary education 5) First stage of tertiary education

Other Issues By using multinomial logit model, we want to explore • if the proportion of formal, informal, self-employed workers has increased or decreased between 2005 and 2010 in Turkey according to the nine dimensions of job quality. Has the quality of working life improved in Turkey, • Croatia, between 2005 and 2010? By using multilevel analysis and my job quality index.

Thank you for your attention