2 | Erhel & Guergoat-Larivière
In 2001, the European Union created a set of job quality indicators in order to monitor and
compare the performances of member states in this field, which are known as the “Laeken
indicators”.
Although most socio-economic approaches build on multidimensional definitions of job quality,
there is still a debate about whether we should account for several constitutive dimensions or
summarise job quality by a single variable, which would be the wage level according to
traditional neo classical economics, or job satisfaction according to happiness economics. In a
recent study, the Dublin Foundation defines job quality on the basis of the hourly wage
(Eurofound, 2008).
In the present Working Document, we use a multivariate approach to job quality that seems
consistent with the indicators defined in the Laeken perspective and with the discussions
between member states. We will follow the lines of previous research and the report for DG
Employment (Davoine, Erhel, 2008; Davoine, Erhel, Guergoat, 2008a and b; Employment in
Europe 2008 Chapter 4) and define job quality using four main components:
• socio-economic security (i.e. decent wages and secure transitions);
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• skills and training opportunities;
• working conditions;
• ability to combine work and family life, and promotion of gender equality.
Socio-economic security is composed of indicators on wages and contracts, but also of some
subjective indicators, such as job satisfaction. The second dimension is about education and
training, and gathers indicators on both initial and continuous education. The third dimension is
for working conditions (accidents, work intensity, long working hours, health at risk etc.). The
last dimension encompasses indicators on gender equality (such as the gender employment gap
and pay gap) and on work-family reconciliation (childcare structures etc.). Each of these four
dimensions comprises some Laeken indicators, but also some complementary indicators to
illustrate certain dimensions of job quality that were missing in the Laeken definition.
This paper uses and develops this approach to job quality. After a presentation of the main
existing results in section 2 (based on Davoine et al., 2008a and b), we present new evidence
concerning the positive correlations between job quality and labour market analysis, as well as a
disaggregated approach by social groups, showing inter-individual heterogeneity in job quality
indicators.
2. Mapping job quality in the EU27
Comparative studies show the existence of several regimes of job quality in Europe. In Davoine
et al. (2008a and b), the 27 EU member states divide into four clusters. The methodology that is
used in this research is based first on Principal Components Analysis (PCA) and second on
classification.1 Figure 1 maps job quality in Europe in the first two dimensions of the PCA.
Furthermore, the cluster analysis divides the 27 EU member states into four clusters. Figures 2
and 3 show the position of each cluster according to some main indicators of job quality.
In this analysis (Davoine et al., 2008b), a northern cluster includes Sweden, Denmark, Finland,
the Netherlands and the United Kingdom. A southern cluster is composed of Spain, Italy,
Portugal, Greece and Malta. A continental cluster groups Germany, France, Belgium,
Luxembourg, Austria, Ireland, Slovenia and Cyprus. The New Member States (NMS) are thus
The list of indicators used to implement this methodology can be found in the annex to this report.