Methodology for the multidimensional characterization of the Quality of Employment in Ecuador Methodology for th the multidimensional ch characterization of th the Quality of Employment in in Ecu cuador Obando Car Ob arlos Amores Cés ésar . Bangkok, September 10 2019 1
Methodology for the multidimensional characterization of the Quality of Employment in Ecuador CONTENTS 1. Introduction 2. Objetives 3. Theoretical framework 4. Discussion and Results 5. Conclusions 2
Methodology for the multidimensional characterization of the Quality of Employment in Ecuador 1. . In Introduct ction Quality of Employment What is it ? How to quantify it ? How to measure it ? In Ecuador: Who really have a good or poor quality of employment?
Methodology for the multidimensional characterization of the Quality of Employment in Ecuador 1. . In Introduct ction 1.0 Quality of Employment- Prespectives State Company Workers • Human and • Have • Stability labor rights productive • Social benefits and versatile • Economic • Economic workers growth satisfaction • Poverty • Personal satisfaction
Methodology for the multidimensional characterization of the Quality of Employment in Ecuador 1. . In Introduction – Problem statement Conceptual framework of the Ecuadorian labor market. ENEMDU Databases (INEC) ) Conceptual and methodological elements of the ILO, concerning decent work Conceptual framework of the QOE Conceptual and methodological Methodology for elements of the Europe Union the concerning decent work QOE index calculation Characterization Conceptual and methodological of Employment elements of studies in Latin America (QOE) Quality (QOE) Conceptual and methodological QOE characterization elements based on studies conducted in Ecuador (poverty and well-being indexes ) Theory of categorical principal component analysis (CATPCA) 5
Methodology for the multidimensional characterization of the Quality of Employment in Ecuador 1. Introduction 1.1 Ecuadorian labor market Adequate Time related Underemployment Income related Other unadequate Employment Unadequate Economically employment Active Unpaid Population Undefinded Open Unemployment Hidden Fig 1.2 – EAP Clasification (INEC, 2014) 6
Methodology for the multidimensional characterization of the Quality of Employment in Ecuador 1. Introduction 1.1 Ecuadorian Labor Market Table 1. 1.1.1 1.1 History of Hi of Em Employment and and Une Unemployment survey (E (ENEMDU) Año Area Self – rep Se epresented Cit ities Per eriodicity In Inference le level 198 1987 Urban Quito, Guayaquil, Cuenca Annual Self-represented cities 19 1988 Urban Quito, Guayaquil, Cuenca, Machala Annual Self-represented cities 19 1989 Urban Quito, Guayaquil, Cuenca, Machala Annual Self-represented cities 1990 19 Urban, Rural Quito, Guayaquil, Cuenca, Machala Annual National & Self-represented cities 19 1991 to to 20 2002 Urban Quito, Guayaquil, Cuenca, Machala Annual National & Self-represented cities 20 2003 Urban & rural Quito, Guayaquil, Cuenca, Machala Biannual National & Self-represented cities 20 2004 to to 20 2006 Urban & rural Quito, Guayaquil, Cuenca, Machala Quarterly National & Self-represented cities 200 2007 to to 201 2016 Urban & rural Quito, Guayaquil, Cuenca, Machala, Ambato Quarterly National & Self-represented cities Source: Instituto Nacional de Estadística y Censos (INEC) 7
Methodology for the multidimensional characterization of the Quality of Employment in Ecuador 1. . In Introduction 1.1 Ecuadorian Labor Market Table 1.1.2 Mai Main vari ariables in invest stigated by by ENEMDU surv survey No Variable Population No Variable Population 1 Area Total Population 16 Inactivity condition Inactive population 5+ 2 Natural region Total Population 17 Occupational position Occupied population 5+ Total Population 3 Province Occupied population 5+ 18 Type of contract 4 Main cities Total Population 19 Workplace Occupied population 5+ 5 Gender Total Population 20 Number of workers Occupied population 5+ Total Population 6 Age Occupied population 5+ 21 Existence of accounting records 7 Family relationship Total Population 22 Unit regiter of taxpayers (RUC) Occupied population 5+ 8 Social Security Total Population 23 Number of jobs Occupied population 5+ 12+ population 9 Civil Status Occupied population 5+ 24 Working hours in reference week 10 Level of instruction 5+ population 25 Job satisfaction Occupied population 5+ 5+ population 11 Ethnicity 26 Work income Occupied population 5+ 5+ population 12 Worked last week (reference week) Occupied population 5+ 27 Economic sector 13 Job search management Unemployment 5+ 28 Occupational group Occupied population 5+ No job 5+ 14 Reason for no job search 29 Activity branch Occupied population 5+ 15 Job availability Inactive population 5+ Total population 30 Activity condition Source: Instituto Nacional de Estadística y Censos (INEC) 8
Methodology for the multidimensional characterization of the Quality of Employment in Ecuador 1. Introduction 1.1 Ecuadorian Labor Market Nat ational Occupation, , underemployment an and d une nemployment rat ates Table 1.1.3 Main Indicators 60,0 53,6 Natio ational 2012 20 2013 20 2014 2015 20 2016 49,3 48,7 48,0 50,0 46,9 49,3 Gross participation rate 45,6 43,8 44,6 45,7 47,1 47,9 46,5 46,5 Global participation rate 61,7 62,1 64,5 65,8 67,3 40,0 41,2 Gross occupancy rate 59,1 59,5 62,0 62,6 63,8 Global occupancy rate 95,9 95,8 96,2 95,2 94,8 30,0 Full occupancy rate 46,5 47,9 49,3 46,5 41,2 19,9 20,0 Inadequate occupancy rate 49,3 48,0 46,9 48,7 53,6 14,0 12,9 11,6 Underemployment rate 9,0 11,6 12,9 14,0 19,9 9,0 10,0 Unemployment rate 4,1 4,2 3,8 4,8 5,2 5,2 4,8 4,1 4,2 3,8 Open unemployment rate 3,1 3,0 3,0 3,7 4,1 0,0 Hidden unemployment rate 1,0 1,2 0,8 1,1 1,1 2012 2013 2014 2015 2016 Tasa de Ocupación Plena Tasa de Ocupación Inadecuada Tasa de Subempleo Tasa de Desempleo Source: INEC - ENEMDU Survey- December Source: INEC 9
Methodology for the multidimensional characterization of the Quality of Employment in Ecuador 1. Introduction 1.2 ILO – Decent Work • Jun 1999 Origin • 87ª International Working Conference General • Promote economies at the service of the people Objetive (freedom, equity, security and dignity) • Workers rights Strategic • Employment opportunities Objetives • Social protection (ILO, 2013) • Social dialogue
Methodology for the multidimensional characterization of the Quality of Employment in Ecuador 1. Introduction 1.2 ILO – Decent Work • Employment opportunities • Adequate income and productive work • Decent Work Hours • Reconciliation of work, family life and personal life • Work that should be abolished Indicators • Stability and work safety • Opportunities and treatment in employment • Safe working environment • Social Security • Social dialogue and representation of workers and employers 11
Methodology for the multidimensional characterization of the Quality of Employment in Ecuador 1. Introduction 1.3 European Union – Quality of Employment (EU, 2010) • Lisbon European Council Origin • March 2000 • Improve the quality of employment in the countries of the region General • Become one of the most competitive and dynamic economies in Objetives the world • Intrinsic quality of work (level of satisfaction) Features • Quality of work in the organization (absence of risks) • Quality in the conformation of employment (salary, stability, ..) 12
Methodology for the multidimensional characterization of the Quality of Employment in Ecuador 1. Introduction European Union – Quality of Employment • Calculate the distance of each case with respect to a theoretical reference case that Sintetic represents the worst possible conditions, under the assumptions of: Indicator • Completeness: Consider all the properties of the incident variables. • Goodness: The simple indicators of each variable are statistically good. DP2 • Objectivity: What is sought with the synthetic indicator can be achieved through simple indicators. Bernardo Peña Trapero 1977 • Linearity: There is a linear relationship between the incident variables. Tabla 1.3.1 Ranking de calidad de empleo al 2005 m The nu number of of cas ases País DP2 Ranking Dinamarca 5,0922 1 n The number of variables Holanda 5,6986 2 Finlandia 8,0839 3 Luxemburgo 8,1880 4 The value of variable i for the case j x ij Bélgica 9,0352 5 Austria 9,0863 6 Suecia 9,1971 7 σ i The standard deviation of variable i Irlanda 9,3536 8 Reino Unido 9,4727 9 Alemania 10,1054 10 2 Determination coefficient of the regression X i against X i−1 , X i−2 , … , X 1 R i,i−1,…,1 Malta 12,0746 11 Chipre 12,5906 12 España 12,6417 13 Francia 12,8994 14 𝑜 Eslovenia 14,0342 15 𝑒 𝑗 𝜏 𝑗 Portugal 14,4937 16 Then: 2 ൗ 𝐸𝑄 2 = 1 − 𝑆 𝑗,𝑗−1,…,1 Italia 14,8114 17 Estonia 15,4877 18 𝑗=1 Hungría 15,6266 19 2 = 0, 𝑥𝑗𝑢ℎ 𝑆 1 𝑒 𝑗 = 𝑦 𝑗𝑘 − 𝑦 𝑗∗ , 𝑦 𝑗∗ 𝑤𝑏𝑚𝑣𝑓 𝑝𝑔 𝑠𝑓𝑔𝑓𝑠𝑓𝑜𝑑𝑓 𝑗𝑜 𝑤𝑏𝑠𝑗𝑏𝑐𝑚𝑓 𝑌 𝑗 República Checa 15,6606 20
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