tilburg university, department of social and cultural studies / osa – institute for labour studies...
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Tilburg University, Department of Social and Cultural Studies /
OSA – Institute for Labour Studies
Conceptualization and Measurement of Flexicurity in a Comparative Perspective
Seminar Flexicurity Network Copenhagen, June 9, 2006
Ruud . J. A. Muffels & Ton Wilthagen
1. Job mobility and Work Security: Trade-Off or Double-Bind
2. Flexicurity in a life course perspective
Research focus in both projects
• Exploring the role and performance of welfare states /
policy regimes in maintaining flexibility and work and
income security using longitudinal data (paneldata;
lifecourse-data)
• Based on a dynamic approach: define flexicurity not in
a static way but in a lifecourse perspective
• Define a broad set of dynamic ‘outcome’ indicators on
both: flexibility and security. Not EPL but tenure or
job mobility should be used as indicators
Life course proofing of flexicurity arrangements
• Life-course proofing: long-term effects of working time arrangements such as part-time work, career breaks (care and educational leave schemes) and working in non-standard jobs.
• Short and long-term effects on future wages and income; on participation in employment; on occupational level of jobs (careers), on job quality, life satisfaction and health
• Main underlying question: Is there a ‘trade-off’ or a ‘double bind’ relationship between the aims of creating a flexible labor market and safeguarding employment security for all people over their life-time?
Dynamic indicatorsFlexibility:
– Job-to-job mobility (internal, external);
– Professional status mobility;
– Contractmobility
Work Security:
– Employment stability; unempl. spells;
– Exit and (Re)-Entry: w.r.t. employment; working hours;
quality of work
– Income security; well-being; quality of life; social
participation & integration (e.g. spells of low/high income,
well-being etc.);
Policy indicators: availability and use of policy measures
• Availability (opportunity set)
– EPL; Labour Market and Social Security Policies; Firm’s
HRM policies; Self-regulation (market; individual; civil
society)
• Usage/take-up
– Job tenure; usage of: LM/SS arangements; Working Time
Options; Vocational Training; Quality of Working Conditions
• Construction of policy index on availability and usage
• Outcomes/effects: assess differences across countries and changes
in policies over time; find homogenous clusters; use clusters in job
mobility and exit/re-entry analyses
“Much security” (secure jobs, active LMP, generous UIB)
‘Little security’(insecure jobs, active LMP, low UIB benefits)
‘Much flexibility’(high job mobility, loose EPL etc.)
Social Democratic regime
Liberal regime
Transition countries
‘Little Flexibility’(low job mobility, tight EPL HRM etc.)
Corporatist Continental European regime
Traditionalist Southern European regime
Table 1: The ‘flexicurity’ combination of employment regulation and work/income security in different
employment regimes
Two contrasting perspectives
– Trade-off thesis: trade-off between flexibility and
security due to increased competition and a process
of skill-biased technological change
_ Flexicurity thesis: double bind between flexibility
and security: due to the ‘knowledge-based economy,
flexibility is required to be competitive and to afford
work/income security which on its turn is required
to sustain high levels of flexibility
Low work security(exit high / (re-)entry low)
High work security (exit low / (re-)entry high)
Low flexibility(low job mobility)
High flexibility(high job mobility)
II = Trade-off I = Flexicurity
III = Inflexicurity
IV = Trade-off
Fig. 1. The theoretical relationship between flexibility and security
Work security below EU-average
Work security above EU-average
Job Mobility below EU-average
Job Mobility above EU-average
II = Trade-off(tightly regulated LM,active LM policies)
I = Flexicurity(activating policies, high employability)
III = Inflexicurity(tightly regulated, segmented LM)
IV = Trade-off(no regulation, no active LM policies)
Social-democratic
Southern,traditionalist
Anglo-Saxon,Liberal
Corporatist, continental
Fig. 2: The contended location of the welfare regimes in the ‘flexicurity’ quadrant
Transition countries
Australian/antipodean
Measures using ECHP• Job Mobility (JM)
– Occupational mobility [JM] (based on occupational class [EGP] :
– Contract Mobility [CM] (mobility between employment contracts: flexible job; permanent job; self-employment)
• Work Security (WS)– Staying in employment – Moving into more secure employment
between t and t+1 for each of the pairs of years of observation
Add: Income security; Working conditions
Ten ‘flexicurity’ indicators
Flexibility • 1. Internal job-to-job mobility• 2. External job mobility• 3. Occupational class mobility• 4. Wage mobility (based on hourly real earnings)• 5. Contract mobility
Work and income security• 6. Working time flexibility• 7. Labour market stability and mobility • 8. Job quality. Maintaining or moving into a better job• 9. Social protection related mobility • 10. Work-life balance related mobility (caring; educaton)
Measure for Work Security changes
o=origin state; d=destination state; m=number of destination states
o,d: 1 = permanent job; 2 = flexible job; 3 = self-employment; 4 = out-of-work
= - 100% : nobody occupies a job because all people moved out into non-work during the observation period
= + 100% : nobody stayed not-working because everybody got a job during the observation period
od
m
do ood
m
do o ExitEntryWS
1;11;1
Fig. 3: Indices for job mobility (JM), contract mobility (CM) andwork security (WS) by country
0
5
10
15
20
25
30
35
40
45
50
55
60
DK NL FIN IRL UK BE GE FR AU GR SP IT POCountries
Per
cen
tag
e
Job Mobility (JM) Contract Mobility (CM) Work Security (WS)
Work Security
Job Mobility
EU-WS
EU-JM
Exit
Entry
Contract Mobility
EU-CM
Fig. 4: Indices for job mobility (JM), contract mobility (CM) andwork security (WS) by regime type
0
5
10
15
20
25
30
35
40
45
50
55
60
SocDem Liberal Corporatist SouthernRegimes
Per
cen
tag
e
Job Mobility (JM) Work Security (WS) Contract Mobility (CM)
Work Security
Job Mobility
Contract Mobility
EU-WS
EU-CM
EU-JM
SD
SOU
LIB
COR
DK
FR
GE
FIN
IT
NL
UK
IRL
BE
GRSP
PO
AU
Inflexicurity
Trade-off
Trade-off
Flexicurity
Work security above EU-average
Job Mobility above EU-average
Job Mobility below EU-average
Work security below EU-average
Fig. 5: The empirical derived location of twelve European countries and four regime types within the ‘flexicurity’ quadrant
Conclusions and discussion
• Define dynamic ‘outcome’ indicators for measuring the attained balance between flexibility and security
• Define a broad set of dimensions of the ‘flexicurity’ concept like the ten dimensions proposed here
• Shift the focus from short-term to long-term or life-course
indicators and measure the effects of particular life course events on future careers (using panel and LC data)
• Apply the measures on comparative data with a sufficient number of countries to find country clusters and to test whether policies matter and whether regimes change over time