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Income and non-wage benefits from employment Task Force on Measurement of Quality of Employment Paris, June 12 and 13
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It may be obvious but… A survey of 2,500 Canadians 1 : 6 in 10 said good pay was “very important” in a job Over half said benefits were “very important” Pay and benefits among most significant “job quality deficits” 1 Changing Employment Relationships Survey, Canadian Policy Research Networks
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Income from employment indicators: Evaluated: 1. Share of employed working below ½ median hourly earnings 2. Share of employees paid at or below the minimum wage Proposed: 1. Average wages 2. Distribution of wages by quintile
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Results of indicator evaluation Share of employed working below ½ median hourly earnings Useful Strength in providing simple relative measure Too simple? Should there be an age cut-off? Should household-level be considered?
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Results of indicator evaluation Share of employees paid at or below minimum wage Useful, simple measure Too simple? Should there be an age cut-off? In some Canadian jurisdictions, minimum wages set very, very low, so very few people in this indicator (0.7% in Alberta) Duplicative?
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Share earning minimum wage or less
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Results of indicator evaluation Average wages of employees Felt that there was a need to go beyond relative measurement – what are people actually making? Should household-level be considered? How to make international or inter- regional comparisons, given regional living cost differences?
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Average wage growth relative to prices
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Results of indicator evaluation Distribution of wages by quintile Felt that there was a need for more sophisticated measurement or relative earnings Comparing top quintile to bottom would allow wage polarization analysis Too complicated?
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Fastest wage growth among the best paid 1/5 of employees
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Non-wage benefits from employment indicators: Evaluated: 1. Share of employees entitled to paid annual leave 2. Average length of paid annual leave Proposed: 1. Share of employees receiving supplemental medical insurance
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Results of indicator evaluation Share of employees entitled to paid annual leave Perhaps the most important “non- wage benefit”, so very relevant Entitlement data needs to be combined with estimates based on actual behaviour (next indicator)
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Results of indicator evaluation Average length of paid annual leave Perhaps the most important “non- wage benefit”, so very relevant Supplement to entitlement data
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Entitlement and use of annual paid leave
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Income and non-wage benefits from employment What do you think??
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