Pilot study on workers’ well-being -An application of the capability approach- Giulia Bizzotto Vilfredo Pareto School of Economics New Directions in Welfare A conference for economists and policy makers St Catherine’s College, Oxford University, 29 June - 1 July 2009

Giulia Bizzotto Pilot study on workers' well-being2 Main topics. -Evaluation of employment characteristics in terms of individual well-being -Discussion of well-being conception -Measurement of well-being Main topics Theoretical framework Empirical model Results Future research’s directions Some references

Giulia Bizzotto Pilot study on workers' well-being3 Well-being conception. Rawls, J., (2001), “Justice as fairness”, Harvard University Press. primary goods → participation in society Roemer, J.E., (1998) “Equality of opportunity”, Harvard University Press. circumstances and effort → “…leveling the playing field…” Nussbaum, M.C., (1999), “Sex and social justice”, Oxford University Press. individual’s centrality and universalism Sen, A.K., (1992), “Inequality re-examined”, Clarendon Press, Oxford. freedom of choice → capability approach Main topics Theoretical framework Empirical model Results Future research’s directions Some references Well-being Capability approach A list of capabilities

Giulia Bizzotto Pilot study on workers' well-being4 Capability approach. Functionings → Individual beings and doings Capabilities → Freedom to be or to do Sen, A.K., (1992), “Inequality re-examined”, Clarendon Press, Oxford. Main topics Theoretical framework Empirical model Results Future research’s directions Some references Well-being Capability approach A list of capabilities

Giulia Bizzotto Pilot study on workers' well-being5 A list of capabilities for workers. Robeyns, I., (2003) “Sen's capability approach and gender inequality: Selecting relevant capabilities”, Feminist Economics, 9:2, 61 – Bodily health, integrity and safety 2.Mental well-being 3.Shelter and environment 4.Social relations 5.Family care 6.Political empowerment 7.Education and knowledge 8.Paid work 9.Time autonomy, leisure and personal projects 10.Control over resources 11.Being respected 12.Self-integration Main topics Theoretical framework Empirical model Results Future research’s directions Some references Well-being Capability approach A list of capabilities

Giulia Bizzotto Pilot study on workers' well-being6 A Mimic model of Workers well-being. Premises: Capabilities (y*) are latent and unobservable; Capabilities are influenced by external causes (x); Functionings (y) are observable and they are linked to capabilities. ζ Exogenous causes of capabilities x 1, …, x q Functionings y 1, …, y p Capabilities y* 1, …, y* m ΓΛ ε Measurement modelStructural model Di Tommaso, M.L., et al. (2009), “As bad as it gets: Well-being deprivation of sexually exploited trafficked women.” European Journal of Political Economy, 2009, 25, Main topics Theoretical framework Empirical model Results Future research’s directions Some references Mimic model Data Variables

Giulia Bizzotto Pilot study on workers' well-being7 Data: Workers of working age. Source: British Household Panel Survey (BHPS) Available waves :16 (17) – from 1991 to 2007 (2008) Wave selected: 14th – year 2004/05 Sample of workers of working age out of an original population of observations –Women: years old –Men : years old Main topics Theoretical framework Empirical model Results Future research’s directions Some references Mimic model Data Variables

Giulia Bizzotto Pilot study on workers' well-being8 Variables. Main topics Theoretical framework Empirical model Results Future research’s directions Some references Mimic model Data Variables

Giulia Bizzotto Pilot study on workers' well-being9 Estimates: λ. Factor loadings of capabilities’ indicators. b Base of Factor Analysis. *** Significant at least at 1% level. Main topics Theoretical framework Empirical model Results Future research’s directions Some references Factor loadings Coefficients

Giulia Bizzotto Pilot study on workers' well-being10 Estimates: γ. Coefficients of external causes. *** Significant at least at 1% level. ** Significant at least at 5% level. * Significant at least at 10% level. Main topics Theoretical framework Empirical model Results Future research’s directions Some references Factor loadings Coefficients

Giulia Bizzotto Pilot study on workers' well-being11 Future research’s directions: SEM. Krishnakumar, J., and Ballon, P., (2008), “Estimating basic capabilities: a structural equation model applied to Bolivia”, World Development Vol. 36, No. 6, pp. 992–1010, ζ ζ x x PHY PSY y ε ε y ε ε w w KNOW x ζ … x ζ JOB x ζ FAMILY x ζ Main topics Theoretical framework Empirical model Results Future research’s directions Some references

Giulia Bizzotto Pilot study on workers' well-being12 Some references. Alkire, S., and Black, R., (1997), “A practical reasoning theory of development ethics: Furthering the capabilities approach”, Journal of International Development, 9:2, 263 – 279. Di Tommaso, M.L., et al. (2009), “As bad as it gets: Well-being deprivation of sexually exploited trafficked women.” European Journal of Political Economy, 2009, 25, Di Tommaso, M.L., (2007), “Measuring the well being of children using a capability approach. An application to Indian data.” Journal of Socio Economics, 2007, vol 36, pp Krishnakumar, J., and Ballon, P., (2008), “Estimating basic capabilities: a structural equation model applied to Bolivia”, World Development Vol. 36, No. 6, pp. 992–1010, Nussbaum, M.C., (1999), “Sex and social justice”, Oxford University Press. Nussbaum, M.C., (2003), “Capabilities as fundamental entitlements: Sen and social justice”, Feminist Economics, 9 (2 – 3), 33 – 59. Nussbaum, M.C., and Sen, A.K., (1993), “The quality of life”, Clarendon Press, Oxford. Rawls, J., (2001), “Justice as fairness”, Harvard University Press, Cambridge, Mass. Robeyns, I., (2003) “Sen's capability approach and gender inequality: Selecting relevant capabilities”, Feminist Economics, 9:2, 61 – 92. Roemer, J.E., (1998) “Equality of opportunity”, Harvard University Press, Cambridge Mass., London England. Sen, A.K., (1985), “Commodities and capabilities”, North Holland, Amsterdam, New York, Oxford. Sen, A.K., (1992), “Inequality re-examined”, Clarendon Press, Oxford. Sen, A.K., (1997), “On economic inequality” - enlarged ed. with a substantial annex of Foster, J., and Sen, A.K., “On economic inequality after a quarter century”, Clarendon Press, Oxford. Sen, A.K, and Williams, B., (1990), “Utilitarianism and beyond” Cambridge University Press, Cambridge. Main topics Theoretical framework Empirical model Results Future research’s directions Some references