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Using data envelopment analysis to quantify ILO objectives and identify policies conducive to decent work in a globalizing world

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  • Thore, Sten
  • Tarverdyan, Ruzanna

Abstract

The International Labor Office, an arm of the UN based in Geneva, has as its goal the promotion of opportunities for women and men to obtain decent and productive work, in conditions of freedom, equity, security and human dignity. Since 1999, the ILO has conducted a series of studies of decent work. In 2001, the organization posed the global challenge of reducing the decent work deficit as measured by an employment gap, rights gap, a social protection gap, and a social dialogue gap. Using standard economic terms, "decent work" may be seen as an efficiency point along a generalized input-output function, dependent upon variables of both economic performance and economic and social policy. The decent work deficit of a given country (if any) is then obtained as the difference between an observed point and its projection on the efficiency frontier. Using data envelopment analysis (DEA), we fit a piecewise linear frontier to observations for 61 countries from all continents. Importantly, 27 of these countries lie on the decent work frontier; the remaining ones reveal conditions of decent work deficit. The possibilities of reducing such deficits by appropriate control of policy variables are discussed.

Suggested Citation

  • Thore, Sten & Tarverdyan, Ruzanna, 2009. "Using data envelopment analysis to quantify ILO objectives and identify policies conducive to decent work in a globalizing world," Socio-Economic Planning Sciences, Elsevier, vol. 43(3), pages 151-164, September.
  • Handle: RePEc:eee:soceps:v:43:y:2009:i:3:p:151-164
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    References listed on IDEAS

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    1. Sten Thore & Ruzanna Tarverdyan, 2008. "Using Data Envelopment Analysis To Screen The Possibility Of A Fair Globalization," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(1), pages 129-151.
    2. Knox Lovell, C. A., 1995. "Measuring the macroeconomic performance of the Taiwanese economy," International Journal of Production Economics, Elsevier, vol. 39(1-2), pages 165-178, April.
    3. Golany, Boaz & Thore, Sten, 1997. "The Economic and Social Performance of Nations: Efficiency and Returns to Scale," Socio-Economic Planning Sciences, Elsevier, vol. 31(3), pages 191-204, September.
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    Cited by:

    1. Hovhannes Toroyan & George C. Anayiotos, 2009. "Institutional Factors and Financial Sector Development; Evidence from Sub-Saharan Africa," IMF Working Papers 09/258, International Monetary Fund.

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