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Consequences of temporary and part-time workin Finland from an employee perspective
 

Consequences of temporary and part-time workin Finland from an employee perspective

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Presentation by Merja Kauhanen (Research coordinator, Labour Institute for Economic Research, Finland) on the occasion of the EESC LMO conference on "Typical and atypical work contracts - advantages ...

Presentation by Merja Kauhanen (Research coordinator, Labour Institute for Economic Research, Finland) on the occasion of the EESC LMO conference on "Typical and atypical work contracts - advantages and disadvantages from the labour market perspective" in Warsaw, Poland, on 8/9 April 2013.

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    Consequences of temporary and part-time workin Finland from an employee perspective Consequences of temporary and part-time workin Finland from an employee perspective Presentation Transcript

    • Consequences of temporary and part-time workin Finland from an employee perspectiveLMO conference "Typical and atypical work contracts -advantages and disadvantages from the labour marketperspective" 8-9 April 2013Merja Kauhanen, Labour Institute for Economic Research, HelsinkiFinland LABOUR INSTITUTE FOR ECONOMIC RESEARCH
    • Outline of the presentation• How common temporary and part-time work is in Finland & reasons for doing temporary and part-time work• Consequences of temporary and part-time work from an employee perspective How temporary jobs are experienced by employees Quality of jobs (core indicators) by type of contract Wages & poverty risks Are temporary jobs bridges or traps? Transitions from these jobs• Policy implications LABOUR INSTITUTE FOR ECONOMIC RESEARCH
    • Atypical employment relationships in Finland in 2011 Both genders Female Male (1000) % (1000) % (1000) %Wage and salary earners 2143 100 1091 100 1052 100Permanent full-time job 1585 74.0 734 67.3 851 80.9Atypical total 511 26.0 356 32.7 201 19.1 Permanent part-time 221 10.3 155 14.2 66 6.3 Temporary full-time job 251 11.7 146 13.4 105 10.0 Temporary part-time job 85 4.0 56 5.1 30 2.8 Temporary total 336 15.7 202 18.5 135 12.8 Part-time total 307 14.3 211 19.3 96 9.2Source: Statistics Finland, LFS LABOUR INSTITUTE FOR ECONOMIC RESEARCH
    • 0 5 10 15 20 25 30 35 40 % Spain Poland Portugal Cyprus Slovenia Netherlands Finland Sweden France Germany EU15 ItalyLABOUR INSTITUTE EU27 2011 (Eurostat, LFS) Greece Ireland Belgium Female Austria Czech Republic Male Denmark Hungary Luxembourg Malta Slovakia United Kingdom LatviaFOR ECONOMIC RESEARCH Bulgaria Share of temporary workers by gender in Estonia Lithuania Romania
    • 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 Netherlands 80,0 % Germany AustriaUnited Kingdom Sweden EU15 Denmark Luxembourg Ireland EU27 France ItalyLABOUR INSTITUTE (Eurostat, LFS) Malta Spain Finland Portugal Estonia Slovenia Cyprus Poland Latvia Females Romania Greece Lithuania Males HungaryCzech RepublicFOR ECONOMIC RESEARCH Slovakia Bulgaria Share of part-time workers by gender in 2011
    • Reason for doing temporary job: could not find apermanent job by gender and age in 2011, %(Statistics Finland, LFS) %100 90 87,5 Female Male 80,0 78,4 78,6 80 76,7 69,2 70 65,5 64,3 60,8 60 57,5 50 42,6 39,7 40 30 20 10 0 15-64 15-24 25-34 35-44 45-54 55-64 LABOUR INSTITUTE FOR ECONOMIC RESEARCH
    • Reasons for doing part-time work by gender in Finland in 2011 (Statistics Finland, LFS) %40,0 36,735,0 Females Males30,0 28,4 26,7 26,0 24,425,0 23,020,015,0 13,2 10,010,0 9,3 5,0 2,2 0,0 Could not find a full-time In education or training Looking after children or Own illness or disability Wants to work part-time job incapacitated adults for other reasons LABOUR INSTITUTE FOR ECONOMIC RESEARCH
    • Experiences of temporary jobs by employees(Finnish Quality of Work Life Survey, 2008) Female Male (%) (%)Financial insecurity is strenuous 60 52Insecurity puts under mental strain 45 34Makes it difficult to make future plans 56 54Misses the security related to permanentemployment relationship 70 62Fixed-term employment is associated withthe positive feeling of non-commitment 52 57 LABOUR INSTITUTE FOR ECONOMIC RESEARCH
    • Economic and social consequences oftemporary and part-time work arrangements The growth of temporary and part-time employment has raised interest in the economic and social consequences of these work arrangements. One essential question in this context is the quality of jobs and worker well-being Temporary and part-time workers constitute a very heterogeneous group and there are differences in labour market status and quality of jobs within these groups LABOUR INSTITUTE FOR ECONOMIC RESEARCH
    • Indicators of job quality• Core indicators (Green, 2006): i) wages (including fairness of wages) ii) the skills involved in a job (including lifelong learning and career development) iii) job autonomy iv) work effort v) low risks and security (employment security and physical security) vi) justice (e.g. equality, non-discrimination) LABOUR INSTITUTE FOR ECONOMIC RESEARCH
    • Skills development indicators: perceived training possibilities and participation in employer-funded training (Kauhanen and Nätti, 2011): Distinct differences in the perceived skills development possibilities by the type of employment relationship Good training possibilities by the type of Participation in employer-funded training employment relationship by the type of employment relationship 0,5 0,7 0,45 0,6 0,4Ennustettu todennäköisyys Ennustettu todennäköisyys 0,35 0,5 0,3 0,4 0,25 0,3 0,2 0,15 0,2 Involuntary part-time Involuntary temporary Other temporary Other temporary 0,1 Involuntary part-time Involuntary part-time Other part-time 0,1 Other part-time Permanent full-time Permanent full-time 0,05 0 0 1997 2003 2008 1997 2003 2008 LABOUR INSTITUTE FOR ECONOMIC RESEARCH
    • Skills development indicators: possibilities to learn and grow at work and career prospects (Kauhanen and Nätti, 2011) Good opportunities to learn and grow at Good career prospects by the type of work by the type of employment employment relationship relationship 0,5 0,14 0,45 0,12 0,4Ennustettu todennäköisyys Ennustettu todennäköisyys 0,35 0,1 0,3 0,08 0,25 0,2 0,06 0,15 Involuntary temporary 0,04 Other temporary Involuntary temporary 0,1 Involuntary part-time Other temporary Other part-time Involuntary part-time 0,05 Permanent full-time 0,02 Other part-time Permanent full-time 0 0 1997 2003 2008 1997 2003 2008 LABOUR INSTITUTE FOR ECONOMIC RESEARCH
    • Job autonomy and threat of unemployment (Kauhanen andNätti, 2011)Distinct differences in the perceived job autonomy and threat ofunemployment by the type of employment relationship Job autonomy by the type of employment Threat of unemployment by the type of relationship employment relationship 0,35 0,8 0,3 0,7Ennustettu todennäköisyys 0,6 Ennustettu todennäköisyys 0,25 Involuntary temporary Other temporary Involuntary part-time 0,5 Other part-time 0,2 Permanent full-time 0,4 0,15 0,3 0,1 Involuntary temporary 0,2 Other temporary Involuntary part-time 0,05 Other part-time Permanent full-time 0,1 0 0 1997 2003 2008 1997 2003 2008 LABOUR INSTITUTE FOR ECONOMIC RESEARCH
    • Wages• Temporary work: The average wage of temporary workers lags those of permanent workers even after controlling for the individual and job characteristics in Finland. Wage penalty was on average around seven percent in 2007 (Statistics Finland)• Part-time work: Lower working hours -> lower wages LABOUR INSTITUTE FOR ECONOMIC RESEARCH
    • In-work poverty risk by type of contract in 2007 (source: Workingpoor in Europe): Part-time and temporary workers havesubstantially higher in-work poverty risks than full-time andpermanent workers % 16 15 14 13 Finland EU25 12 12 10 10 8 7 6 5 4 3 3 2 0 Full-time Part-time Permanent Temporary LABOUR INSTITUTE FOR ECONOMIC RESEARCH
    • Transitions from temporary jobs As regards consequences of atypical jobs an essential question is related to labour market mobility: do temporary jobs act a stepping stone to permanent employment or are they dead ends not helping workers to advance their working careers• Preliminary results (Kauhanen and Nätti, 2012): Involuntary temporary work seems to work better as a bridge to permanent employment for men than for women, for young workers compared to older ones, and for highly educated compared to those with low education. For older workers and workers with low education involuntary temporary jobs lead more often to a negative career development in the labour market, such as transitions to unemployment and outside labour force. LABOUR INSTITUTE FOR ECONOMIC RESEARCH
    • Policy implications In the labour market where an increasing number of workers are exposed to uncertainty and possible career interruptions the role of skills development is becoming increasingly important ->highlights the importance of providing equal opportunities for all workers to learn and get training at work, to update their skills, and to increase their human capital. Equal treatment in legislation & collective agreements LABOUR INSTITUTE FOR ECONOMIC RESEARCH
    • Thank you for your attention! LABOUR INSTITUTE FOR ECONOMIC RESEARCH