A Multidimensional Index of Labor Vulnerability (Decent Work) for Mexico

Transcription

1 A Multidimensional Index of Labor Vulnerability (Decent Work) for Mexico By Araceli Ortega Díaz XIII Encuentro Internacional de Estadísticas de Género: Bases empíricas para políticas públicas orientadas al empoderamiento económico de las mujeres Aguascalientes, México 8, 9 y 10 de octubre de 2012

2 Index 1. Introduction. 2. Labour regulations. 3. Different existing macro indexes to measure decent work. 4. Proposed Index based on the National Survey of Employment and Occupation (ENOE). 5. Dimensions to be Measured: a) Monetary b) Non Monetary 6. Calculation. 7. Conclusions. This work is based on a research sponsored by INMUJERES in Mexico.

3 Introduction We are interested in investigating the wellbeing of the labour force in Mexico, classifying every worker according to their vulnerability conditions based on the norms and labour laws, national and internationally dictated by the ILO, the Mexican Labour Law and the Mexican Constitution. According to different definitions of decent work (ILO 1999, 2010), Somavia (2000), Anker, Chernyshev, Egger, Mehran y Ritter (2003), Bescond, Chataignier & Mehran (2003), Sen (2000), Ghai (2005), (Abramo, 2006), all authors coincide that decent work has to include the following characteristics:...to count with labour opportunities that enhance productivity, generates a decent income, protection and security for the worker s family, better labour expectations and society integration, freedom to express you opinions, organization and participation in the decisions, equality of opportunities, and equal treatment independently of gender...

4 Labour Regulation. Table 1. International Labour Laws Labour Law topics Unions freedom Hours of work Collective Negotiation Security and health of labour Forced labour Social Security Child Labour Maternity protection Equal opportunities and treatment Social Policy Third party consultation Migrant workers Labour Administration HIV/AIDS Labour Inspection Sea workers Employment Policies Fisherman Labour promotion Labour at ports Formation and labour orientation Indigenous population and tribes Employment security Other categories of particular workers Wages and salaries Source: Chávez-González-Ortega-Sánchez (2012) with ILO data. [1] [2] [3]

5 Labour Regulation. Table 2. Regulation of Labour Relations in article 123 of Mexican Constitution Basic principles under which labour relations are developed and regulated - article 123 Federal Constitution of 1917 Right to a decent work and socially useful. Duration of labour - maximum 8 hours daily Duration of labour at night - maximum 7 hours (reformed 1974). Prohibition of labour in minors of 14 years (reformed 1962). At least one day of rest for every 6 of work. Labour during pregnancy (reformed 1974). Minimum wages (reformed 1986). For same type of work corresponds the same salary, without having nationality nor sex. Right to utilities participation (reformed 1962). Wages paid in legal currency. Increase in labour hours by extraordinary circumstances. Obligation of enterprises (agriculture, industry or miner) to provide comfortable housing according to law (reformed 1972). Obligation of enterprises to provide training (reformed 1978). Source: Chávez-González-Ortega-Sánchez (2012) with information of Mexican Constitution.

6 Labour Regulation (cont...) Table 2. Regulation of Labour Relations in article 123 of Mexican Constitution Basic principles under which labour relations are developed and regulated - article 123 Federal Constitution of 1917 The entrepreneurs will be responsible for the professional accidents or sickness of workers caused by executing their job, and are obligated to give compensations for that.. The entrepreneur should comply with hygiene and security in their facilities. Workers and entrepreneurs have the right to form unions or professional associations to defend their interests. Workers and entrepreneurs have the right to strike. Conflicts related to capital and labour are solved in the conciliation and arbitrage meetings. Any unjustified firing should comply with the contract and compensation of 3 months of wage (reformed 1962). Some conditions do not apply eve though they could be specified in a contract: inhuman labour schedules, non remunerated work, more than a week to received daily payment, obligation to pay for consumption articles in an specific store, keep from receiving the wage, etc. In Social security law there will be specifications of invalids, elderly, life, involuntary cessation, sickness and accidents, nursery services, and any other that protects workers wellbeing (reformed 1974). Labour conditions of workers in the Federal Government

7 Labour Regulation (cont...) Table 3. Ratified Labour Agreements by Mexico Decent Work Element Ratified Agreement in ILO Mexico Labour Opportunities Government Agreements in favour of full employment C. 122 No Unemployment Insurance C. 102 yes Labour that should be abolished Child Labour C. 138, C. 182 No, yes Forced Labour C. 29, C. 105 Yes, yes Adequate Income and productive labour Minimum legal wage C. 131 Yes Hours of decent work (Segment A) Maximum number of labour C. 1 No Social security Pensions C. 102 Yes Incapability to work due to sickness C. 102 Yes Incapability to work due to an accident C. 102 Yes Equality of opportunities in labour conditions Legislation related to no discrimination due to gender C. 100, C. 111 yes, yes Legislation related to no discrimination due to race, ethnicity, religion or national origin C. 100, C. 111 Yes, yes Combination of work and family life Maternity leave C. 183 No Labour in a secure environment Security in labour and health security C. 155, C. 102 Yes, yes Inspection in labour C. 81, C. 129 No, no Participation Union freedom and right to syndication C.87 Yes Right to collective bargaining C. 98 No Third part consultation C. 144 Yes (yes,no)

8 WHAT HAS BEEN MEASURE? Table 4. Different existing macro indexes to measure decent work Index Aggregation Labor Opportunities Activity rate Employment rate Juvenile employment rate Under employment rate Non agriculture employment Source: Author s elaboration based on Anker, Chernyshev, Egger, Mehran y Ritter, 2003.

9 WHAT HAS BEEN MEASURE? (cont ) Table 4. Different existing macro indexes to measure decent work Index Inadmissible Job Children without education according to their employment status (percentages by age 10-14) Child labor rate : employed and selfemployed. (percentages by age) Aggregation Stability and Job security Less than a year in current job Temporal job Conciliation between work and family life Women (20-49) employment rate with children, where children age is lower than compulsory school age. Source: Author s elaboration based on Anker, Chernyshev, Egger, Mehran y Ritter, 2003.

10 WHAT HAS BEEN MEASURE? (cont ) Table 4. Different existing macro indexes to measure decent work Index Remuneration and Productive work Low remuneration rate (income per hour lower that the median) Mean income of professionals Aggregation Excessive labor hours (more that 48 hours involuntarily worked) Involuntary Underemployment rate Rate of training in the last 12 months Source: Author s elaboration based on Anker, Chernyshev, Egger, Mehran y Ritter, 2003.

11 WHAT HAS BEEN MEASURE? (cont ) Table 4. Different existing macro indexes to measure decent work Index Fair treatment in the place of work Segregation rate by sex (non agriculture sector) Percentage of women in directive positions (non agriculture sector) Percentage of women with remunerated work (non agriculture sector) Ratio between men and women wages Aggregation Source: Author s elaboration based on Anker, Chernyshev, Egger, Mehran y Ritter, 2003.

12 WHAT HAS BEEN MEASURE? (cont ) Table 4. Different existing macro indexes to measure decent work Job Safeness Index Deadly accidents rate for labor causes (accidents by every 100,000 remunerated workers) Labor inspection (inspectors per every 100,000 remunerated and insured workers ) Percentage of remunerated and insured workers Labor relations Percentage of workers affiliated to a labor union Percentage of workers covered by collective work negotiation. Strikes (by every 1,000 remunerated worker) Aggregation

13 WHAT HAS BEEN MEASURE? (cont ) Table 4. Different existing macro indexes to measure decent work Social Protection Index Public spending in social security (% of GDP) Percentage of population that receive a pension (economic inactive,65 year old or more) Percentage of active population that participates in a pension fund. Mean annual pension Aggregation Source: Author s elaboration based on Anker, Chernyshev, Egger, Mehran y Ritter, 2003.

14 WHAT HAS BEEN MEASURE? (cont ) Table 4. Different existing macro indexes to measure decent work Index Socioeconomic environment of decent work Production Increase by worker Aggregation Inflation Composition of employment by economic sector Income inequality Poverty Labor in the informal sector Source: Author s using Anker, Chernyshev, Egger, Mehran y Ritter, 2003

15 Indexes proposed to measure dimensions of decent work For Mexico we can measure with certain confidence level the following dimensions using the National Survey of Occupation and Employment: 1. Income 2. Hours of work 3. Social Security 4. Work and family life 5. Insufficient work (underemployment) 6. Protection to worker s rights 7. Respect to worker s rights 8. Employment stability 9. Regulation: be affiliated to a union 10. Labor that should be abolish (12 and 13 year olds) 11. Find a job easily (unemployment spells) 12. Compatibility with formal education From these dimensions we could measure the first eight due to its relevance for all working population.

16 DATA: Table 6 Definitions of Decent Work that are possible to calculate with The National Survey of Employment and Occupation in Mexico ENOE OIT 1999a DEFINICION DE TRABAJO DECENTE Anker, Ermid Somavi Chernyshev, a a (2000) Egger, Mehran (2000) y Ritter (2003) OIT 1999b Bescond, Chataignier y Mehran (2003) Sen (2000) Ghai (2005) Abramo (2006). Convenios Ratificados Trabajo Productivo X X X X Suficiente X x x Protección a los derechos de los trabajadores X X x x x Respeto a los derechos de los trabajadores X X x x Ingresos adecuados /suficientes X X X X X x x x Protección Social Adecuada X X X X X X x x Formas efectivas de protección social x x x Participación en decisiones que afectan a los trabajadores X X X X Condiciones de Libertad X Libertad Sindical X X X x x x Dialogo social Negociación colectiva X x x x Trabajo seguro X X X x x x Oportunidades del trabajo X Con equidad, no discriminación en la contratación X X X x x x Los niños no deben trabajar X X X x x x Jornada no excesiva X X x x x Encontrar empleo rapidamente X x x Derechos universales X X Mejores perspectivas de desarrollo e integración a la sociedad X X X Pleno empleo Trabajo forzoso X Inspección X X Derecho de negociación colectiva X X x x x Consultas tripartitas X X Art 123 ENOE CA* ENOE CB** * Cuestionario Ampliado **Cuestionario Básico

17 Who do we classify? Source: Authors based on INEGI(2002)

18 Tabl6.4 Panels of ENOE 2005 to 2011 Panel Quarters Trimestres que comprende Panel 2005 T-105 T-205 T-305 T-405 T-106 Panel 2006 T-106 T-206 T-306 T-406 T-107 Panel 2007 T-107 T-207 T-307 T-407 T-108 Panel 2008 T-108 T-208 T-308 T-408 T-109 Panel 2009 T-109 T-209 T-309 T-409 T-110 Panel 2010 T-110 T-210 T-310 T-410 T-111 Fuente: Chávez-González-Ortega-Sánchez (2012) con base en ENOE

19 Decent Work Index II Vulnerable by Minimum Labor Standards (MEL) I Non decent work III Decent Work IV Vulnerable by Minimum Wage Violation line to Minimum Wage (VSM) 7 Dimensions of Labor Violation 1 0 1) Hours worked, 2) social security, 3) work and family life, 4) sufficient work (underemployment), 5) Rights protection, 6) respect to rights, y 7) stability in employment (less than a year in current job). Source : Ortega et al (2012)

20 Extreme non decent work V Extreme not decent work Poverty line of employment (ITLP) 7 Dimensiones de Violación Laboral 4 0 1) Hours worked, 2) social security, 3) work and family life, 4) sufficient work (underemployment), 5) Rights protection, 6) respect to rights, y 7) stability in employment (less than a year in current job). Fuente : Ortega et al (2012)

21 Quadrants of Work Classification 100% 90% % 70% 60% 50% 40% 30% % 10% % Men 05 Women 05 Men 06 Women 06 Men 07 Women 07 Men 08 Women 08 Men 09 Women 09 Men 10 Women 10 Non Decent Work Work vulnerable MEL Decent Work Vulnerable by Wage Source : Ortega et al (2012)

22 I. Non decent work:. Percentage by educational level and gender for age group 25 to % % 80% % 60% 50% 40% 30% 20% 10% 0% Men Women Men Women Men Women Men Women Men Women Men Women Incomplete primary Complete primary Complete Secondary Highschool and higher Unspecified Source : Ortega et al (2012)

23 I. Non decent work. Distribution by in and out of labor market, by gender for age group 25 to % 90% 80% % 60% % 40% 30% 20% 10% % Men Women Men Women Men Women Men Women Men Women Men Women quarters occupied At least 1 quarter unemployed At least 1 quarter inactive Source : Ortega et al (2012)

24 I. Non decent work. Distribution by employment type, by gender for age group 25 to % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Men Women Men Women Men Women Men Women Men Women Men Women Uderemployed and remunerated Employer Self-employed Without payment Unespecified Source : Ortega et al (2012)

25 V. Extreme non decent work: Percentage by wage level and gender for age group 14 to % % 80% 70% 60% % % % 20% 10% % Men Women Men Women Men Women Men Women Men Women Men Women Until 1 minimum wage more tha 1 to 2 minimum wage More than 2 to 3 minimum wage More than 3 to 5 minimum wage More than 5 minimum wages No wage Unespecified Source : Ortega et al (2012)

26 V. Extreme non decent work:. Percentage by wage level and gender for age group 25 to % % % % % 50% 40% % 20% 10% % Men Women Men Women Men Women Men Women Men Women Men Women Until 1 minimum wage more tha 1 to 2 minimum wage More than 2 to 3 minimum wage More than 3 to 5 minimum wage More than 5 minimum wages No wage Unespecified Source : Ortega et al (2012) Fuente : Ortega et al (2012)

27 100% 90% 80% 70% 60% V. Extreme non decent work:. Percentage by occupation and gender for age group 25 to % % 30% 20% % 0% Men Women Men Women Men Women Men Women Men Women Men Women Profesionals, Tecnicians, Art Education Public Charge and Directors Office Industry, artisants and apprentice Comerce Transport Opperator Personal Services Protection and surveillance Agriculture Unespecified Source : Ortega et al (2012)

28 MEL:. Distribution by employment type, by gender for age group 25 to % % 80% % % 50% 40% % % 10% 0% Men Woman Men Woman Men Woman Men Woman Men Woman Men Woman Subordinated and remunerated Employers Self-employed Without payment Unespecified Source : Ortega et al (2012)

29 MEL:. Distribution by employment type, PANEL 05, 2 nd quarter Number of Violations (MEL) Total Subordinated and Remunerated Employer Self-Employed Non Remunerate d 0 5.6% 9.2% 0.0% 0.0% 0.0% % 25.1% 0.0% 0.0% 0.0% 2 8.5% 13.8% 0.5% 0.0% 0.6% % 12.0% 66.4% 58.2% 46.1% % 28.7% 31.4% 39.2% 50.7% 5 7.5% 10.6% 1.7% 2.6% 2.6% 6 0.4% 0.7% 0.0% 0.0% 0.0% Total 100.0% 100.0% 100.0% 100.0% 100.0% 1) Hours worked, 2) social security, 3) work and family life, 4) sufficient work (underemployment), 5) Rights protection, 6) respect to rights, y 7) stability in employment (less than a year in current job). Source : Ortega et al (2012)

30 Some characteristics of extreme non decent work Women with extreme non decent work in all age groups receive lower income than men. Women work mostly in occupations related to personal services and men in industrial activities. Among workers with non decent jobs it is observed that with time, a higher proportion of workers have more year of education. Men have jobs with higher duration than women. There is a higher proportion of women with non decent work that are in non remunerated activities. Fuente : Ortega et al (2012)

31 Dimensions: Poverty labor line ITLP MINIMUM WELFARE FOOD BASQUET VALUE ut105 = ut107 = ut109 = ut111 = rt105 = rt107 = rt109 = rt111 = ut205 = ut207 = ut209 = ut211 = rt205 = rt207 = rt209 = rt211 = ut305 = ut307 = ut309 = rt305 = rt307 = rt309 = ut405 = ut407 = ut409 = rt405 = rt407 = rt409 = ut106 = ut108 = ut110 = rt106 = rt108 = rt110 = ut206 = ut208 = ut210 = rt206 = rt208 = rt210 = ut306 = ut308 = ut310 = rt306 = rt308 = rt310 = ut406 = ut408 = ut410 = rt406 = rt408 = rt410 = Source: Authors own elaboration with CONEVAL data

32 Dimensions: Hours excesive hours= 1 number of hours worked >60 and age >16 1 without a day of rest for every 6 days of work 1 work more than 7 hours in an evening job 1 work more than 6 hours diarias y edad [12,16] 0 in other case (eoc)

33 Dimensions: Social Security without social security 1 have no access to credit for a mortgage 1 have no access to a nursery 1 have no access to maternity of paternity leave 1 have no access to a retirement fund (SAR /AFORE) 1 have no access to life insurance 1 have no access to health services 0 eoc

34 Dimensions: Social Security Table 6.2 Correlation between variables in the dimension of social security House Mortgag e Nursery Maternit y Retirem ent Life Insuran ce Health without SS House Mortgage 1 Nursery Maternity Retirement Life insurance Health Without SS

35 Dimensions: Social Security We observe that the variables such as credit for mortgage, retirement funds, and health services are highly correlated, and explain more of this dimension than variable of maternity leave and nursery. An analysis of principal components also help us to see that this three variables explain most of the variance of social security, and combined showed that 64.33% of people don't have social security. Therefore these three factor are: without social security 1 without access to credit for a mortgage o 1 without access to a pension fund(sar /AFORE) o 1 without access to health services 0 oec

36 Dimensions: Conciliation of Work and Family life conciliation of work and family= 1 without access to nursery 1 without access to maternity/paternity leave 0 has access to nursery and maternity leave

37 Dimensions: Insufficient work insufficiente work = 1 if is underemployed 0 eoc

38 Dimensions: Protection to labor rights work without contract= 1 has no contract 0 eoc

39 Dimensions: Respect to rights no respect for rights 1 economic sector is related to alcohol, bad manners, unsupervised rolling job unhealthy conditios, non industrial evening job, and age [12-16) 1 industrial evening job and age do not have annual bonus (aguinaldo) 1 do not have paid vacations 1 do not have utilities share and is in th eprivate sector 1 work on Sunday and age [12,16] 0 eoc

40 Dimensions: Work Stability Unstable job= 1 has less than a year in current job 1 has more than a year in current job and the contract is temporal 0 has more than a year in current job and its a permanent contract

41 Thank you COMMENTS