Page 142 - ePaper
P. 142
Employment and Social Developments in Europe 2014
15
available ( ). On average, this indica- Chart 4: Involuntary temporary work and transitions from temporary
tor remained fairly constant over the to permanent contracts
period at around 0.3, but ranging from
about 0.2 (e.g. Sweden, Finland) to more 80
than 0.4 (e.g. Romania, Portugal) — with 70 MT
a higher value indicating higher inequal- 60 EE RO
ity. Since the beginning of the decade, UK LT
inequality has decreased substantially in 50 HR LV
the Baltic countries and France, while it Transitions from temporary to permanent contracts, % 40 AT DE SI SE HU CZ SK
has increased in Cyprus and Italy. 30 LU FI BG BE PT EL
3.1.2. Job and career security 20 NL EU-28 PL IT CY
effects on commitment, 10 FR ES
enhanced firm-specific 0
skills and productivity 0 20 40 60 80 100
Involuntary temporary work, %
Job security strengthens workers’ com- Sources: Eurostat LFS, table lfsa_etgar and ilc_lvhl32. Data for involuntary temporary employment is for
1
mitment and the opportunities to acquire 2013 ( ); data for transitions if for 2011. Transitions data for Denmark and Ireland is missing.
firm-specific skills, which in turn may Note: 15 to 64 years age group; % of total temporary workers.
-
enhance individual and team perfor ( ) Involuntary temporary work used in this subsection is based on the Eurostat concept. In particular,
1
mance, with a positive impact on pro- employees with temporary contracts are those who declare themselves as having a fixed-term
employment contract (see below) or a job which will terminate if certain objective criteria are
ductivity (e.g. Auer et al., 2005; Brown met, such as completion of an assignment or return of the employee who was temporarily
16
et al., 2011) ( ). In contrast, involuntary replaced (for more details check the Eurostat metadata available at http://epp.eurostat.ec.europa.
eu/cache/ITY_SDDS/EN/lfsa_esms.htm. Employees with fixed-term contracts: Following Eurostat,
part-time work or long spells of inactivity/ the concept of fixed-term contract is only applicable to employees, not to the self-employed.
unemployment between temporary jobs) In some countries, contracts of this type are settled only in specific cases, e.g. for public-sector
jobs, apprentices or other trainees within an enterprise. Given wide institutional discrepancies,
may erode human capital and lead to the concepts of ‘temporary employment’ and ‘work contract of limited duration’ (or ‘permanent
poor mental health and low life satisfac- employment’ and ‘work contract of unlimited duration’) describe situations which, in different
institutional contexts, may be considered similar. For the reference definitions, please consult
tion (e.g. Green, 2011; Sverke et. al, 2006), the EU-LFS explanatory notes at http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/
negatively affecting personal performance EU_labour_force_survey_-_methodology#LFS_explanatory_notes
and overall productivity. Moreover, invol-
untary part-time work or long spells of transition from temporary to permanent productivity and growth (see for instance
inactivity/unemployment between tem- contracts is particularly difficult in Spain, OECD, 2014).
porary jobs decrease the household work Greece, Cyprus and Portugal. In contrast,
intensity and increase the risk of in-work Austria, Germany, the Netherlands and Chart 5 shows the unfavourable changes
poverty and social exclusion. Job security Estonia have low rates of involuntary observed in the majority of the Mem-
may, nevertheless, induce shirking in some temporary employment and high transi- ber States during the recent crisis ( ).
21
circumstances if not counteracted by spe - tion rates to permanent employment ( ). Involuntary temporary work increased
19
cific measures (e.g. Yellen, 1984; Shapiro while the transition to more stable
and Stiglitz, 1984; IchoNo and Riphahn, Temporary work needs not necessarily employment contracts fell. The situation
17
2005)( ). be a negative job feature. If, for example, appears to have deteriorated further in
the reason for temporary employment the Southern countries (Greece, Spain,
A high proportion of workers in Spain, of young people is that they are in edu- Cyprus) and Slovakia, followed by Bul-
Greece, Portugal, Cyprus, Romania and cation or training (as in Germany, Aus- garia, the Czech Republic, Hungary and
Slovakia are on involuntary temporary tria and Denmark)( ) or on a probation Latvia. Noticeable changes are also seen
20
18
22 23
contracts (Chart 4) ( ). Moreover, the period, then a temporary job can be seen in Luxembourg and Italy( )( ).
as a stepping stone to more stable forms
15
( ) Earnings distribution is not to be confused of employment. However, if upward tran - Chart 6 shows a positive change in at
with distribution of income, wealth or sitions in pay level and/or contract type least one of the indicators for a limited
opportunities. For a comprehensive study on
24
the latter, see, for example, the GINI project are impeded and the labour market is number of Member States ( ). In Austria,
available at http://www.gini-research.org/ highly polarised, the prospects for career
articles/home
21
16
( ) Using macro-data covering advancement and perceptions about ( ) Note that this chart draws from different
13 European countries between 1992 and the quality of their jobs will be poorer. surveys covering data for 2013 and 2011.
22
2002, Auer et al. (2005) report a positive ( ) The share of employees aged 15–24 in
(though eventually decreasing) relationship This may reduce motivation, and thus temporary contracts due to education or
between job tenure and productivity. Using training in all temporary employees aged
micro-data from 2004, Brown et al. (2011) 15–24 decreased substantially in Italy (from
show strong employee commitment decreases 54 % to 40 %) and Luxembourg (from 52 %
the probability that labour productivity is below ( ) However, there is a high gender imbalance to 44 %) between 2007 and 2013.
19
the sample mean by about 10 pps. in transition rates to permanent contract in ( ) These trends may reflect an increased
23
17
( ) Note that job security need not exclude Estonia (see Annex 3, Chart A3.5). tendency of firms to use temporary
internal job flexibility. For example, ( ) In 2013, the share of employees aged contracts to absorb more easily shocks in
20
it is possible that short-time working 15–24 in temporary contracts due to product (and hence also in labour) demand
arrangements adopted during an economic education or training in all temporary during the crisis, especially in countries
downturn can have a positive impact on employees aged 15–24 was 85 % (though where employment protection legislation
long-run labour productivity to the extent this figure is flagged as unreliable by is much stricter for permanent than for
that the free time is used for skill formation. Eurostat), 80 % and 54 % in Germany, temporary contracts.
( ) Note that this chart draws from different Austria and Denmark. This percentage ( ) Note that this chart draws from different
18
24
surveys covering data for 2013 and 2011. remained stable between 2007 and 2013. surveys covering data for 2013 and 2011.
140
15
available ( ). On average, this indica- Chart 4: Involuntary temporary work and transitions from temporary
tor remained fairly constant over the to permanent contracts
period at around 0.3, but ranging from
about 0.2 (e.g. Sweden, Finland) to more 80
than 0.4 (e.g. Romania, Portugal) — with 70 MT
a higher value indicating higher inequal- 60 EE RO
ity. Since the beginning of the decade, UK LT
inequality has decreased substantially in 50 HR LV
the Baltic countries and France, while it Transitions from temporary to permanent contracts, % 40 AT DE SI SE HU CZ SK
has increased in Cyprus and Italy. 30 LU FI BG BE PT EL
3.1.2. Job and career security 20 NL EU-28 PL IT CY
effects on commitment, 10 FR ES
enhanced firm-specific 0
skills and productivity 0 20 40 60 80 100
Involuntary temporary work, %
Job security strengthens workers’ com- Sources: Eurostat LFS, table lfsa_etgar and ilc_lvhl32. Data for involuntary temporary employment is for
1
mitment and the opportunities to acquire 2013 ( ); data for transitions if for 2011. Transitions data for Denmark and Ireland is missing.
firm-specific skills, which in turn may Note: 15 to 64 years age group; % of total temporary workers.
-
enhance individual and team perfor ( ) Involuntary temporary work used in this subsection is based on the Eurostat concept. In particular,
1
mance, with a positive impact on pro- employees with temporary contracts are those who declare themselves as having a fixed-term
employment contract (see below) or a job which will terminate if certain objective criteria are
ductivity (e.g. Auer et al., 2005; Brown met, such as completion of an assignment or return of the employee who was temporarily
16
et al., 2011) ( ). In contrast, involuntary replaced (for more details check the Eurostat metadata available at http://epp.eurostat.ec.europa.
eu/cache/ITY_SDDS/EN/lfsa_esms.htm. Employees with fixed-term contracts: Following Eurostat,
part-time work or long spells of inactivity/ the concept of fixed-term contract is only applicable to employees, not to the self-employed.
unemployment between temporary jobs) In some countries, contracts of this type are settled only in specific cases, e.g. for public-sector
jobs, apprentices or other trainees within an enterprise. Given wide institutional discrepancies,
may erode human capital and lead to the concepts of ‘temporary employment’ and ‘work contract of limited duration’ (or ‘permanent
poor mental health and low life satisfac- employment’ and ‘work contract of unlimited duration’) describe situations which, in different
institutional contexts, may be considered similar. For the reference definitions, please consult
tion (e.g. Green, 2011; Sverke et. al, 2006), the EU-LFS explanatory notes at http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/
negatively affecting personal performance EU_labour_force_survey_-_methodology#LFS_explanatory_notes
and overall productivity. Moreover, invol-
untary part-time work or long spells of transition from temporary to permanent productivity and growth (see for instance
inactivity/unemployment between tem- contracts is particularly difficult in Spain, OECD, 2014).
porary jobs decrease the household work Greece, Cyprus and Portugal. In contrast,
intensity and increase the risk of in-work Austria, Germany, the Netherlands and Chart 5 shows the unfavourable changes
poverty and social exclusion. Job security Estonia have low rates of involuntary observed in the majority of the Mem-
may, nevertheless, induce shirking in some temporary employment and high transi- ber States during the recent crisis ( ).
21
circumstances if not counteracted by spe - tion rates to permanent employment ( ). Involuntary temporary work increased
19
cific measures (e.g. Yellen, 1984; Shapiro while the transition to more stable
and Stiglitz, 1984; IchoNo and Riphahn, Temporary work needs not necessarily employment contracts fell. The situation
17
2005)( ). be a negative job feature. If, for example, appears to have deteriorated further in
the reason for temporary employment the Southern countries (Greece, Spain,
A high proportion of workers in Spain, of young people is that they are in edu- Cyprus) and Slovakia, followed by Bul-
Greece, Portugal, Cyprus, Romania and cation or training (as in Germany, Aus- garia, the Czech Republic, Hungary and
Slovakia are on involuntary temporary tria and Denmark)( ) or on a probation Latvia. Noticeable changes are also seen
20
18
22 23
contracts (Chart 4) ( ). Moreover, the period, then a temporary job can be seen in Luxembourg and Italy( )( ).
as a stepping stone to more stable forms
15
( ) Earnings distribution is not to be confused of employment. However, if upward tran - Chart 6 shows a positive change in at
with distribution of income, wealth or sitions in pay level and/or contract type least one of the indicators for a limited
opportunities. For a comprehensive study on
24
the latter, see, for example, the GINI project are impeded and the labour market is number of Member States ( ). In Austria,
available at http://www.gini-research.org/ highly polarised, the prospects for career
articles/home
21
16
( ) Using macro-data covering advancement and perceptions about ( ) Note that this chart draws from different
13 European countries between 1992 and the quality of their jobs will be poorer. surveys covering data for 2013 and 2011.
22
2002, Auer et al. (2005) report a positive ( ) The share of employees aged 15–24 in
(though eventually decreasing) relationship This may reduce motivation, and thus temporary contracts due to education or
between job tenure and productivity. Using training in all temporary employees aged
micro-data from 2004, Brown et al. (2011) 15–24 decreased substantially in Italy (from
show strong employee commitment decreases 54 % to 40 %) and Luxembourg (from 52 %
the probability that labour productivity is below ( ) However, there is a high gender imbalance to 44 %) between 2007 and 2013.
19
the sample mean by about 10 pps. in transition rates to permanent contract in ( ) These trends may reflect an increased
23
17
( ) Note that job security need not exclude Estonia (see Annex 3, Chart A3.5). tendency of firms to use temporary
internal job flexibility. For example, ( ) In 2013, the share of employees aged contracts to absorb more easily shocks in
20
it is possible that short-time working 15–24 in temporary contracts due to product (and hence also in labour) demand
arrangements adopted during an economic education or training in all temporary during the crisis, especially in countries
downturn can have a positive impact on employees aged 15–24 was 85 % (though where employment protection legislation
long-run labour productivity to the extent this figure is flagged as unreliable by is much stricter for permanent than for
that the free time is used for skill formation. Eurostat), 80 % and 54 % in Germany, temporary contracts.
( ) Note that this chart draws from different Austria and Denmark. This percentage ( ) Note that this chart draws from different
18
24
surveys covering data for 2013 and 2011. remained stable between 2007 and 2013. surveys covering data for 2013 and 2011.
140
