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Multidimensional Measure of Job Quality: Persistence and Heterogeneity in a Developing Country

  • Federico Huneeus
  • Oscar Landerretche
  • Esteban Puentes

We adapt the multidimensional poverty methodology to study job quality dynamics using a unique household survey panel for Chile. We use information on wages, type of contract, training and employment duration to build an aggregate job quality index. Panel data allow us to properly separate individual heterogeneity and true dependence. We estimate a dynamic panel with random effects finding higher job quality among larger and unionised firms. Moreover, labor history predicts job quality confirming the existence of persistence in job quality.

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File URL: http://www.econ.uchile.cl/uploads/publicacion/f22e2a5c1bd21f11e91f9c68ec931c937b20c36c.pdf
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Paper provided by University of Chile, Department of Economics in its series Working Papers with number wp357.

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Length: 34 pages
Date of creation: May 2012
Date of revision:
Handle: RePEc:udc:wpaper:wp357
Contact details of provider: Web page: http://www.econ.uchile.cl/

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  1. Clark, Andrew E., 2005. "Your money or your life : changing job quality in OECD Countries," CEPREMAP Working Papers (Docweb) 0511, CEPREMAP.
  2. Jones, Melanie K. & Jones, Richard J. & Latreille, Paul L. & Sloane, Peter J., 2008. "Training, Job Satisfaction and Workplace Performance in Britain: Evidence from WERS 2004," IZA Discussion Papers 3677, Institute for the Study of Labor (IZA).
  3. Basch, Michael & Paredes-Molina, Ricardo D., 1996. "Are there dual labor markets in Chile?: empirical evidence," Journal of Development Economics, Elsevier, vol. 50(2), pages 297-312, August.
  4. Günther, Isabel & Launov, Andrey, 2012. "Informal employment in developing countries," Journal of Development Economics, Elsevier, vol. 97(1), pages 88-98.
  5. Francis Green, 2001. "It's Been A Hard Day's Night: The Concentration and Intensification of Work in Late Twentieth-Century Britain," British Journal of Industrial Relations, London School of Economics, vol. 39(1), pages 53-80, 03.
  6. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
  7. Freeman, Richard B, 1978. "Job Satisfaction as an Economic Variable," American Economic Review, American Economic Association, vol. 68(2), pages 135-41, May.
  8. Mark B. Stewart, 2007. "The interrelated dynamics of unemployment and low-wage employment," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(3), pages 511-531.
  9. Maria Ana Lugo, 2007. "Employment: A proposal for internationally comparable indicators," OPHI Working Papers ophiwp003, Queen Elizabeth House, University of Oxford.
  10. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  11. Jean-Yves Duclos & David E. Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Poverty Comparisons," Economic Journal, Royal Economic Society, vol. 116(514), pages 943-968, October.
  12. A. Atkinson, 2003. "Multidimensional Deprivation: Contrasting Social Welfare and Counting Approaches," Journal of Economic Inequality, Springer, vol. 1(1), pages 51-65, April.
  13. Lea Cassar, 2010. "Revisiting Informality: Evidence from Employment Characteristics and Job Satisfaction in Chile," OPHI Working Papers ophiwp041, Queen Elizabeth House, University of Oxford.
  14. Dante Contreras, 2003. "Poverty and Inequality in a Rapid Growth Economy: Chile 1990-96," Journal of Development Studies, Taylor & Francis Journals, vol. 39(3), pages 181-200.
  15. Carro, Jesus M., 2007. "Estimating dynamic panel data discrete choice models with fixed effects," Journal of Econometrics, Elsevier, vol. 140(2), pages 503-528, October.
  16. Lucie Davoine & Christine Erhel & Mathilde Guergoat-Larivière, 2008. "A Taxonomy of European Labour Markets Using Quality Indicators," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00317280, HAL.
  17. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," Journal of Economic Inequality, Springer, vol. 1(1), pages 25-49, April.
  18. Bo E. Honoré & Ekaterini Kyriazidou, 2000. "Panel Data Discrete Choice Models with Lagged Dependent Variables," Econometrica, Econometric Society, vol. 68(4), pages 839-874, July.
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