thinking inside the box? assessing mobility through typologies of employment organisation

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www.skope.ox.ac.uk Thinking inside the box? Assessing mobility through typologies of employment organisation Craig Holmes and Ken Mayhew SASE Annual Conference, Universidad Autónoma de Madrid, June 24 th 2011

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Thinking inside the box? Assessing mobility through typologies of employment organisation. Craig Holmes and Ken Mayhew. SASE Annual Conference, Universidad Aut ó noma de Madrid, June 24 th 2011. Introduction. - PowerPoint PPT Presentation

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Page 1: Thinking inside the box?  Assessing mobility through typologies of employment organisation

www.skope.ox.ac.uk

Thinking inside the box?

Assessing mobility through typologies of employment organisation

Craig Holmes and Ken Mayhew

SASE Annual Conference, Universidad Autónoma de Madrid, June 24th 2011

Page 2: Thinking inside the box?  Assessing mobility through typologies of employment organisation

www.skope.ox.ac.uk

Introduction

• Much of emphasis by UK policymakers for improving mobility is placed on the supply side – more human capital greater upward mobility

• Labour market segmentation theories place more emphasis on organisation of employment within firms and occupations

• Evidence of strongly segmented labour markets is limited• However, the organisation of employment in terms of

mechanisms for within-firm and across-firm transitions is still an important barrier to mobility

Page 3: Thinking inside the box?  Assessing mobility through typologies of employment organisation

www.skope.ox.ac.uk

Introduction

• LMS theories lead to a simply typology of jobs:– Internal labour markets– Occupational labour markets– Secondary segment

• Aims of this paper– Is this simple typology a useful tool for analysing mobility?– Has this changed over time?

Page 4: Thinking inside the box?  Assessing mobility through typologies of employment organisation

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Methodology

• UK Labour Force Survey• Two years: 1986 and 2008• 22 work characteristics over job quality; skills, education and

training; job transitions, and tenure• Factor analysis:

– Reduces the larger set of variables to a smaller set of underlying, unobserved factors

– Observed variables map onto different factors with different weights – Statistical software calculates weightings to explain as much variances

as possible– Use only factors that explain more than 1/22 of the total variance

Page 5: Thinking inside the box?  Assessing mobility through typologies of employment organisation

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Methodology

• Grouping analysis:– Mean factor scores by occupation– Groupings suggested by data (not formal cluster analysis)– Focus on most common occupations (by narrowest occupational title)

• Changes over time– New occupations– Common occupations across both time periods

Page 6: Thinking inside the box?  Assessing mobility through typologies of employment organisation

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Results

• Factor analysis:

PROMOTION TURNOVER INDUSTRY NON-SPEC

INTERNAL SECURITY TRADE PROFESSIONAL (1986 only)

SHIFT

INTRA-FIRM OCC CHANGE

INTRA-JOB FIRM CHANGE

INTRA-JOB INDUSTRY CHANGE

OTJ TRAINING FULL-TIME APPRENTICE PROF. QUALS SHIFT WORK

INTRA-FIRM JOB CHANGE

INTRA-OCC FIRM CHANGE

INTRA-OCC INDUSTRY CHANGE

DEGREE PERMANENT HOURS VARY PROF. QUALS(2008 only)

INTRA-INDUSTRY OCC CHANGE

INTRA-INDUSTRY FIRM CHANGE

UNPAID OT SELF EMPLOYED

INTRA-INDUSTRY JOB CHANGE

FULL-TIME

MORE RESPONS.

Page 7: Thinking inside the box?  Assessing mobility through typologies of employment organisation

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Results – grouping occupations

• 1986 – INTERNAL vs. TRADE:

Page 8: Thinking inside the box?  Assessing mobility through typologies of employment organisation

www.skope.ox.ac.uk

Results – grouping occupations

• 2008 – INTERNAL vs. TRADE:

Page 9: Thinking inside the box?  Assessing mobility through typologies of employment organisation

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Results – mobility

• Mean scores for PROMOTION (inter-firm job transitions), 1986 vs. 2008

Page 10: Thinking inside the box?  Assessing mobility through typologies of employment organisation

www.skope.ox.ac.uk

Results – mobility

• Mean scores for TURNOVER (across-firm job transitions), 1986 vs. 2008

Page 11: Thinking inside the box?  Assessing mobility through typologies of employment organisation

www.skope.ox.ac.uk

Results – mobility

• Mean scores for INDUSTRY NON-SPECIFIC (across-industry job transitions), 1986 vs. 2008

Page 12: Thinking inside the box?  Assessing mobility through typologies of employment organisation

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Results – common occupations over time

• For occupations with large employment shares in both samples, TRADE and INTERNAL scores are highly correlated

Development of occupational labour market

No development of occupational labour market

More internalised No occupations Nurses, manager-proprietors, cleaners, domestic and school helpers

Less internalised Electricians, motor mechanics, carpenters, production managers, software professionals

Sales representatives, office managers, clerks

Page 13: Thinking inside the box?  Assessing mobility through typologies of employment organisation

www.skope.ox.ac.uk

Results – common occupations over time

• Some of these changes are coupled with expected changes to security and mobility factor scores:– e.g. office managers and supervisors of clerks have seen falls in

PROMOTION and rise in TURNOVER

• However, not always coupled with expected changes to mobility or security scores:– Production managers and systems analysts do not have higher

TURNOVER– Marketing managers and cashiers have higher PROMOTION scores– Some skilled trades do not all have higher TURNOVER (e.g. carpenters)

or INDUSTRY NON-SPECIFIC (e.g. electricians)– Teachers, typists and chefs have large changes in these outcomes,

despite little change in TRADE or INTERNAL

Page 14: Thinking inside the box?  Assessing mobility through typologies of employment organisation

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Conclusion

• UK occupations across last thirty years can be grouped by methods of skill acquisition and relationship with employers– However, mobility and job security within these groups can vary

greatly and may contradict theory– Groupings have become less distinct over time hybrid groups,

weaker ILMs and OLMs.– Changes to employment organisation of occupations does not always

lead to predicted changes in security and mobility prospects• Two directions suggested by this analysis:

– Occupation factor scores may themselves be useful explanatory variables

– Can a better typology of employment be found? Could it be routed as well in theory as the ILM-OLM-secondary segment model?

Page 15: Thinking inside the box?  Assessing mobility through typologies of employment organisation

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Contact Details

Craig HolmesESRC Centre on Skills, Knowledge and Organisational

Performance (SKOPE), Department of Education,

Norham Gardens,Oxford

Email: [email protected]