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SMARTer Indicators for Decent Work in a Post-2015 Development Agenda: A Discussion and a Proposal

Author

Listed:
  • Ostermeier, Martin
  • Linde, Sarah
  • Lay, Jann
  • Prediger, Sebastian

Abstract

The aim of this paper is to contribute to the ongoing discussion about the design of a post-2015 development framework by proposing indicators to monitor employment outcomes. Our analysis of the current MDG employment indicators shows that measurement problems, the inappropriate use of aggregate statistics, ambiguous interpretability, and assumptions that often do not hold true in the context of developing countries are major shortcomings of the current indicators. Based on this critique, we develop a new set of indicators for productive employment and decent work. We propose four indicators: (i) the growth of labor value added per worker, (ii) the working poverty rate, (iii) (a) the share of workers receiving less than an absolute labor income and (b) the share of workers receiving less than 60 percent of the median labor income. We demonstrate the empirical application of these indicators using the country cases of Uganda and Peru.

Suggested Citation

  • Ostermeier, Martin & Linde, Sarah & Lay, Jann & Prediger, Sebastian, 2015. "SMARTer Indicators for Decent Work in a Post-2015 Development Agenda: A Discussion and a Proposal," GIGA Working Papers 266, GIGA German Institute of Global and Area Studies.
    • Handle: RePEc:zbw:gigawp:266
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    References listed on IDEAS

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    1. Brendan Burchell & Kirsten Sehnbruch & Agnieszka Piasna & Nurjk Agloni, 2014. "The quality of employment and decent work: definitions, methodologies, and ongoing debates," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 38(2), pages 459-477.
    2. Angus Deaton, 2005. "ERRATUM: Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 395-395, May.
    3. Shaohua Chen & Martin Ravallion, 2010. "The Developing World is Poorer than We Thought, But No Less Successful in the Fight Against Poverty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1577-1625.
    4. Azevedo, Joao Pedro & Inchauste, Gabriela & Olivieri, Sergio & Saavedra, Jaime & Winkler, Hernan, 2013. "Is labor income responsible for poverty reduction ? a decomposition approach," Policy Research Working Paper Series 6414, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy

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