Abstract
This paper proposes a methodology for measuring Quality of Employment (QoE) deprivation from a multidimensional perspective in six Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama) using a dataset specifically designed to measure employment conditions. Building on previous work on multidimensional poverty and employment indicators, the paper uses the Alkire/Foster (AF) method to construct a synthetic indicator of the QoE at an individual level. It selects four dimensions that must be considered as essential to QoE deprivation: income, job stability, job security and employment conditions. These dimensions then subdivide into several indicators, a threshold for each indicator and dimension is established before defining an overall cut-off line that allows for the calculation of composite levels of deprivation. The results generated by this indicator show that Central American countries can be divided into three distinct and robust performance groups in terms of their QoE deprivation. Overall, approximately 60% of the deprivation levels are attributable to non-income variables, such as occupational status and job tenure. The methodology used can allow policymakers to identify and focus on the most vulnerable workers in a labour market and highlights the fact that having a formal written contract is no guarantee of good job quality, particularly in the case of women.
Highlights
In recent decades, the social indicators research literature on labour markets in developed countries has devoted increasing attention to the concept of job quality, interchangeably referred to as decent work or the quality of employment (QoE).1 In developing countries, research on this issue is incipient
It uses the Alkire/Foster method for measuring multidimensional poverty (Alkire & Foster, 2011) to define such an index and presents initial results that show how Central American countries can be categorised into three groups of very poor, poor and reasonable overall job quality that are relatively consistent with their level of development
The lowest average deprivation rates are associated with high environmental/physical risk and unemployment, which affect approximately 10% of the labour force. Together these trends indicate that in Central America Quality of Employment (QoE) deprivation is strongly affected by the lack of social protection and income, which can seriously stymie the development of individual capabilities
Summary
The social indicators research literature on labour markets in developed countries has devoted increasing attention to the concept of job quality, interchangeably referred to as decent work or the quality of employment (QoE). In developing countries, research on this issue is incipient. The social indicators research literature on labour markets in developed countries has devoted increasing attention to the concept of job quality, interchangeably referred to as decent work or the quality of employment (QoE).. This article aims to contribute to this emerging literature by proposing a measure of QoE deprivation in Central America. It uses the Alkire/Foster method for measuring multidimensional poverty (Alkire & Foster, 2011) to define such an index and presents initial results that show how Central American countries can be categorised into three groups of very poor, poor and reasonable overall job quality that are relatively consistent with their level of development. The article concludes by showing how a QoE index can be used by policy makers
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