income and non-wage benefits from employment task force on measurement of quality of employment...
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Income and non-wage benefits from employment
Task Force on Measurement of Quality of Employment
Paris, June 12 and 13
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It may be obvious but…It may be obvious but…
A survey of 2,500 Canadians1:
• 6 in 10 said good pay was “very important” in a job
• Over half said benefits were “very important”
• Pay and benefits among most significant “job quality deficits”
1 Changing Employment Relationships Survey, Canadian Policy Research Networks
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Income from employment Income from employment indicators:indicators:Evaluated:1. Share of employed working below ½ median hourly earnings2. Share of employees paid at or below the minimum wage
Proposed:1. Average wages2. Distribution of wages by quintile
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Results of indicator evaluationResults of indicator evaluation
Share of employed working below ½ median hourly earnings
Useful Strength in providing simple relative measure Too simple? Should there be an age cut-off? Should
household-level be considered?
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Results of indicator evaluationResults of indicator evaluationShare of employees paid at or below minimum wage Useful, simple measure Too simple? Should there be an age cut-off? In some Canadian jurisdictions, minimum wages set very,
very low, so very few people in this indicator (0.7% in Alberta) Duplicative?
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Share earning minimum wage Share earning minimum wage or lessor less
0
0.5
1
1.5
2
2.5
3
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
CanadaAlberta
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Results of indicator evaluationResults of indicator evaluation
Average wages of employees Felt that there was a need to go beyond relative
measurement – what are people actually making? Should household-level be considered? How to make international or inter-regional
comparisons, given regional living cost differences?
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Average wage growth relative Average wage growth relative to pricesto prices
90
95
100
105
110
115
120Ju
n-02
Oct
-02
Feb
-03
Jun-
03
Oct
-03
Feb
-04
Jun-
04
Oct
-04
Feb
-05
Jun-
05
Oct
-05
Feb
-06
Jun-
06
Oct
-06
Feb
-07
Jun-
07
Oct
-07
Feb
-08
PricesWeekly wages
Weekly wages, prices June 2002=100
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Results of indicator evaluationResults of indicator evaluation
Distribution of wages by quintile Felt that there was a need for more sophisticated
measurement or relative earnings Comparing top quintile to bottom would allow wage
polarization analysis Too complicated?
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Fastest wage growth among Fastest wage growth among the best paid 1/5 of employeesthe best paid 1/5 of employees
0
1
2
3
4
5
6
7
8
9
10
1st quintile 2nd quintile 3rd quintile 4th quintile 5th quintile
Real wage growth (%),1997 to 2007
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Non-wage benefits from Non-wage benefits from employment indicators:employment indicators:Evaluated:1. Share of employees entitled to paid annual leave2. Average length of paid annual leave
Proposed:1. Share of employees receiving supplemental medical insurance
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Results of indicator evaluationResults of indicator evaluation
Share of employees entitled to paid annual leave Perhaps the most important “non-wage benefit”,
so very relevant Entitlement data needs to be combined with
estimates based on actual behaviour (next indicator)
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Results of indicator evaluationResults of indicator evaluation
Average length of paid annual leave
Perhaps the most important “non-wage benefit”, so very relevant
Supplement to entitlement data
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Entitlement and use of annual Entitlement and use of annual paid leavepaid leave
0
10
20
30
40
50
60
70
80
90
% of employees entitled to paidannual leave
% of employees taking paidannual leave
Average number of days of paidannual leave entitlement
Average number of days of paidannual leave taken
2001
2003
2005
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Income and non-wage benefits from employment
What do you think??