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Chapter 3: The future of work in Europe: job quality and work organisation for a smart, sustainable and inclusive growth
OECD Job quality indicator unemployment, and unemployment indicators from data on individuals to
insurance, which takes into account allow going beyond average tendencies.
A recent ongoing project, ‘Defining, meas - both benefit coverage among the
uring and assessing job quality and its unemployed and benefit generosity. Chart A1.1, Chart A1.2 and Chart
links to labour market performance and A1.3 report the values of the three job
well-being’ within the OECD, co-funded • Quality of the working environment quality measures (earnings quality,
by the European Union, started in Sep- captures non-economic aspects of labour market insecurity and job strain)
tember 2013 and will run for two years. job quality and includes factors that for each country in the dataset.
It starts from the insights provided by relate to the nature and content
the EU flagship initiative New Skills and of work performed, working-time Chart A1.4 plots the cross-country aver-
Jobs in Europe, the OECD Re-assessed arrangements and workplace rela - ages of different measures of job quality
Jobs Strategy and the OECD Better Life tionships. Jobs that are characterised for different worker characteristics. For
Initiative( ). by a high level of job demands such more details, see OECD 2014.
106
as time pressure or physical health
The new OECD framework for measur- risk factors, combined with insuf- Overall, job quality outcomes vary sub-
ing and assessing job quality considers ficient job resources to accomplish stantially across OECD countries across
three dimensions of job quality that are job duties, such as work autonomy each of the three dimensions:
both important for worker well-being and good workplace relationships,
and relevant for policy, and together constitute a major health risk fac - • Denmark, Finland, Germany, Luxem-
allow for a comprehensive assessment tor for workers. Therefore, the OECD bourg, the Netherlands, New Zealand,
of job quality. measures the quality of the work- Norway, Sweden and Switzerland are
ing environment by incidence of job among the best performers. These
• Earnings quality refers to the extent strain, which is a combination of high countries do relatively well along at
to which employment contributes to job demands and few job resources. least two of the three main dimen-
the material living standards of work - sions of job quality, without any
ers and their families. While the aver - While the three dimensions of job quality outcomes in the bottom-10 of the
age level of earnings provides a key are key elements of the new framework, ranking across OECD countries.
benchmark for assessing the degree their actual measurement is flexible
to which having a job ensures good and can be adapted according to the • Australia, Austria, Belgium, Canada,
living conditions, the way earnings are purpose for which they are being used, the Czech Republic, France, Ireland,
distributed across the workforce also data availability and different choices Israel, Italy, Japan, Korea, Mexico, Slo -
matters for well-being. Therefore, the for weighting together the different venia, the United Kingdom and the
OECD measures earnings quality by sub-components. In order to ensure that United States display average perfor -
a synthetic index that accounts for indicators of job quality are conceptually mance. Over the three main dimen-
both the level of earnings and their sound and relevant for policy, the frame - sions of job quality, these countries
distribution across the workforce. work provides three guiding principles. display no more than one outcome in
These are to: i) focus on outcomes expe- either the top-10 or the bottom-10 of
• Labour market security captures rienced by workers as opposed to drivers the ranking across OECD countries,
those aspects of economic security of job quality; ii) emphasise the objec- except for Ireland and Korea where
that are related to the risk of job loss tive features of job quality; and iii) derive the picture is more mixed.
and its consequences for workers and
their families. For OECD countries, 1
labour market insecurity is defined in Chart A1.1: Earnings quality ( )
terms of the risk of becoming unem- (PPP-adjusted gross hourly earnings in USD, 2010)
ployed and its expected cost. The 30
latter depends both on the expected
duration of unemployment and the 25
degree of public unemployment insur -
ance. Labour market security is there - 20
fore defined in terms of the risk of % 15
unemployment, which encompasses
both the risk of becoming unem- 10
ployed and the expected duration of
5
106
( ) The project is structured into seven work
packages: 1. Job quality: what does it 0
mean and how can it be measured? DK BE IE NL LU DE FI SE UK FR IT AT EL ES SI PT PL CZ SK EE HU LT LV
2. Measuring work-related economic security
and its determinants. 3. Measuring quality Source: OECD, Employment Outlook 2014.
of working life and its determinants. Note: Moderate inequality aversion; see OECD 2014.
4. Reassessing labour market performance
when accounting for job quality. 1
5. Maintenance of a permanent database ( ) Earnings Quality is measured as the Harmonic Mean of the earnings distribution in each country.
on job quality. 6. The role of policies and Like other types of ‘general means’, the harmonic mean can be expressed as a function of the
institutions for job quality and employment simple arithmetic mean and of a measure of earnings inequality. As such, it lends itself to being an
performance. 7. Job quality in emerging encompassing measure of earnings quality, since it captures both the average of earnings and their
economies. distribution. See Section 2.1 in Chapter 3 of Employment Outlook 2014 for a detailed discussion.
173
OECD Job quality indicator unemployment, and unemployment indicators from data on individuals to
insurance, which takes into account allow going beyond average tendencies.
A recent ongoing project, ‘Defining, meas - both benefit coverage among the
uring and assessing job quality and its unemployed and benefit generosity. Chart A1.1, Chart A1.2 and Chart
links to labour market performance and A1.3 report the values of the three job
well-being’ within the OECD, co-funded • Quality of the working environment quality measures (earnings quality,
by the European Union, started in Sep- captures non-economic aspects of labour market insecurity and job strain)
tember 2013 and will run for two years. job quality and includes factors that for each country in the dataset.
It starts from the insights provided by relate to the nature and content
the EU flagship initiative New Skills and of work performed, working-time Chart A1.4 plots the cross-country aver-
Jobs in Europe, the OECD Re-assessed arrangements and workplace rela - ages of different measures of job quality
Jobs Strategy and the OECD Better Life tionships. Jobs that are characterised for different worker characteristics. For
Initiative( ). by a high level of job demands such more details, see OECD 2014.
106
as time pressure or physical health
The new OECD framework for measur- risk factors, combined with insuf- Overall, job quality outcomes vary sub-
ing and assessing job quality considers ficient job resources to accomplish stantially across OECD countries across
three dimensions of job quality that are job duties, such as work autonomy each of the three dimensions:
both important for worker well-being and good workplace relationships,
and relevant for policy, and together constitute a major health risk fac - • Denmark, Finland, Germany, Luxem-
allow for a comprehensive assessment tor for workers. Therefore, the OECD bourg, the Netherlands, New Zealand,
of job quality. measures the quality of the work- Norway, Sweden and Switzerland are
ing environment by incidence of job among the best performers. These
• Earnings quality refers to the extent strain, which is a combination of high countries do relatively well along at
to which employment contributes to job demands and few job resources. least two of the three main dimen-
the material living standards of work - sions of job quality, without any
ers and their families. While the aver - While the three dimensions of job quality outcomes in the bottom-10 of the
age level of earnings provides a key are key elements of the new framework, ranking across OECD countries.
benchmark for assessing the degree their actual measurement is flexible
to which having a job ensures good and can be adapted according to the • Australia, Austria, Belgium, Canada,
living conditions, the way earnings are purpose for which they are being used, the Czech Republic, France, Ireland,
distributed across the workforce also data availability and different choices Israel, Italy, Japan, Korea, Mexico, Slo -
matters for well-being. Therefore, the for weighting together the different venia, the United Kingdom and the
OECD measures earnings quality by sub-components. In order to ensure that United States display average perfor -
a synthetic index that accounts for indicators of job quality are conceptually mance. Over the three main dimen-
both the level of earnings and their sound and relevant for policy, the frame - sions of job quality, these countries
distribution across the workforce. work provides three guiding principles. display no more than one outcome in
These are to: i) focus on outcomes expe- either the top-10 or the bottom-10 of
• Labour market security captures rienced by workers as opposed to drivers the ranking across OECD countries,
those aspects of economic security of job quality; ii) emphasise the objec- except for Ireland and Korea where
that are related to the risk of job loss tive features of job quality; and iii) derive the picture is more mixed.
and its consequences for workers and
their families. For OECD countries, 1
labour market insecurity is defined in Chart A1.1: Earnings quality ( )
terms of the risk of becoming unem- (PPP-adjusted gross hourly earnings in USD, 2010)
ployed and its expected cost. The 30
latter depends both on the expected
duration of unemployment and the 25
degree of public unemployment insur -
ance. Labour market security is there - 20
fore defined in terms of the risk of % 15
unemployment, which encompasses
both the risk of becoming unem- 10
ployed and the expected duration of
5
106
( ) The project is structured into seven work
packages: 1. Job quality: what does it 0
mean and how can it be measured? DK BE IE NL LU DE FI SE UK FR IT AT EL ES SI PT PL CZ SK EE HU LT LV
2. Measuring work-related economic security
and its determinants. 3. Measuring quality Source: OECD, Employment Outlook 2014.
of working life and its determinants. Note: Moderate inequality aversion; see OECD 2014.
4. Reassessing labour market performance
when accounting for job quality. 1
5. Maintenance of a permanent database ( ) Earnings Quality is measured as the Harmonic Mean of the earnings distribution in each country.
on job quality. 6. The role of policies and Like other types of ‘general means’, the harmonic mean can be expressed as a function of the
institutions for job quality and employment simple arithmetic mean and of a measure of earnings inequality. As such, it lends itself to being an
performance. 7. Job quality in emerging encompassing measure of earnings quality, since it captures both the average of earnings and their
economies. distribution. See Section 2.1 in Chapter 3 of Employment Outlook 2014 for a detailed discussion.
173
