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While there are fluctuations in all four countries, there was an increase in the percentage of employees directly benefiting from the minimum wage, i.e. whose pay is equal to the minimum wage. This greater level of compliance with the minimum wage, together with its growth in real terms, reinforces the effects of thi...
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7 MW/MEANMW/MEDIANMW/P10ARGENTINA20030.330.400.8020150.480.521.14BRAZIL20030.380.591.0020150.440.601.00CHILE20000.350.490.9320150.380.550.82URUGUAY20040.150.220.5420150.330.430.77 Some 6% of employees in Argentina earned less than the legal minimum wage in 2012 and around 7% earned the minimum wage. This means that th...
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For registered (i.e. formal) employees, 1.4% of them earned less than the minimum wage; for non-registered (i.e. informal) employees, this figure was 19%. The percentage of formal employees earning around the minimum wage was very low (3%) while this was the case for 20% of informal employees. This means that in 20...
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This figure had been almost 100% in 2003 owing to the very low value of the minimum wage, meaning that it was not “effective” in the sense defined earlier. In Brazil, compliance with minimum wage laws appears to be higher than in the other three countries; in 2011 only 1.8% of wage employees earned less than the minim...
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While, as is expected, compliance is universal among formal employees, the percentage of informal employees earning less than the minimum wage is also very small, only 10%. As in Argentina, the proportion of workers earning the minimum wage is higher among informal employees (18%) than formal employees (8%). This “li...
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In Chile, close to 4% of employees in 2011 earned less than the statutory minimum, while a similar percentage earned the minimum wage. Along with Brazil, Chile recorded the lowest percentage of informal employees earning less than the minimum wage. However, in Chile, unlike in Brazil, the percentage of informal emplo...
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Lastly, of the four countries, Uruguay has, in 2012, the highest percentage of employees earning more than the minimum wage (95%), while only 3% earn less than the minimum wage. This reflects the fact that nearly all formal employees earn more than the minimum wage. However, when it comes to informal employees, 20% e...
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Therefore, differences between the four countries regarding the distribution of full-time employees, in terms of their wages in relation to the minimum wage, is largely explained by the situation of informal employees, as the share of formal employees earning no more than the minimum wage is similar in all four cases.
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8 Table 3 Compliance with the minimum wage Source: Own elaboration based on Household Surveys 4.4 Econometric results To analyze the distribution effects of changes in the minimum wage, the semiparametric estimation method proposed by DiNardo, Fortin and Lemieux (1996) was used.
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We estimate counterfactual density functions to assess how the wage distribution would have been at the initial point in time (date t = 0) if, keeping individual attributes constant, the real minimum wage had been that of the final point in time (date t = 1). On the basis of this new counterfactual wage distribution, ...
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In this way, since we evaluate only changes in the minimum wage – holding constant other potential causes of change in wage distribution – it is possible to identify the distribution effects of the minimum wage by comparing the inequality indicators prevailing at the initial point in time with those resulting from the ...
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9 Results are presented in Table 4. The first column shows the wage distribution indicators used to evaluate the effect of the minimum wage, including the Gini index, the Theil index, and the P90/P10, P50/P10 and P90/P50 percentile ratios. In the second column, the actual values of these indicators are shown, for the...
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The next column shows the actual values at the final point in time (t = 1). The fifth column shows the absolute differences between the counterfactual and the initial values, and the statistical significance of the effect of the minimum wage on inequality. The sixth column shows the relative difference, expressed as ...
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Table 4 Distribution effects of the minimum wage Argentina Brazil Chile Uruguay Source: Own elaboration based on Household Surveys In all cases except Chile, the results suggest that the minimum wage had an equalizing effect, although the intensity of the effect varies between countries. In Argentina, Brazil and Urugu...
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The assumption that the minimum wage affects only those individuals earning less than or equal to the minimum wage may determine, at least in part, this latter result.
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10 StatisticsInitial yearCounterfactualFinal yearRelative variationsPercentage of total change explained by MWMean749.317782.4461030.50833.129***4%12%15.63516.22612.3214.16590-105.0004.0973.750-0.903*-18%72%0.3170.2260.1430.34850-102.1431.7562.000-0.387***-18%271%0.1180.0810.0000.14190-502.3332.3331.8750.0000%0%0.0780....
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yearRelative variationsPercentage of total change explained by Mean8012.3588059.69411094.22547.336***1%2%81.76686.55657.82030.57390-106.0005.4204.795-0.580-10%48%0.0550.2100.0890.20750-102.3202.1152.055-0.205***-9%77%0.0310.0830.0360.08390-502.5862.5622.333-0.023-1%9%0.0360.0420.0140.024Gini0.4220.4170.355-0.005***-1%7...
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A similar situation is observed with the Theil index, which contracted by 2.8 p.p (representing a decline of 10%). Meanwhile, the P50/P10 ratio also declined significantly, from 2.14 to 1.76. In this part of the distribution, the rise in the minimum wage accounts for 271 per cent of the decrease in the gap between th...
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The Gini index decreased by 2.4 p.p, i.e. a 5% drop from its initial value (Table 4). Importantly, the increase in the minimum wage accounts for 80% of the decrease in this indicator between 2003 and 2011, which is very high indeed. As in Argentina, the equalizing effect is seen exclusively in the lower tail of the ...
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the ninetieth and tenth percentiles – by about a third. As in Argentina, the results suggest that if the effect of the minimum wage alone had been considered, the P50/P10 ratio of the final year would have been even lower than actually observed. The importance of this factor in reducing wage inequality is associated,...
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where the effects of the minimum wage operate. Graph 4 Actual and counterfactual Kernel density functions Source: Own elaboration based on Household Surveys In Uruguay, the equalizing effects appear to be smaller than in Argentina and Brazil. The minimum wage accounted for about 7% of the decrease in the Gini index b...
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Again, the reduction in the gap between the ninetieth and 11 tenth distribution percentiles reflects exclusively what happened in the lower tail of the distribution, where the minimum wage accounted for 80% of the decrease. In the case of Chile, the very slight effects that changes in the value of the minimum wage had...
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It will be remembered that the increase in real terms in the minimum wage in this country was lower than in the other countries studied (about 40%, while in the other countries the increases were between 100% and 200%). Also, the minimum wage appears to become less “effective” in the second half of the period consider...
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These are some of the reasons why the increase in the minimum wage was not enough to bring about a significant change in the inequality indicators, which decreased less sharply than in the other three countries. Finally, Graph 4 provides a graphical representation of these changes, showing the initial wage density and...
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There is clearly a strong shift that occurs from the lower to the central part of the distribution as a result of the increase in the minimum wage, thereby illustrating the improvements in wage distribution, except in Chile. 5. Final remarks The aim of this article was to discuss the role of the minimum wage in Latin...
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The results obtained confirm that strengthening this labor institution was one of the factors associated with improvements in the wage distribution in these countries, with the exception of Chile where, although there was a decline in wage inequality associated with the minimum wage, the effects were not strong enough ...
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Most of the literature has focused on the effects of diminishing returns to education based on the analysis of supply and demand for different qualifications. This document suggests the importance of extending the analysis to consider also the role of labor institutions in the improved distribution seen in the region....
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It is important to note that the increase in the minimum wage in Latin America took place in a period of employment growth and – particularly in Argentina, Brazil and Uruguay – strong employment formalization. The combination of these two trends therefore casts doubt on the arguments calling for more flexible labor ma...
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Finally, while Latin America has shown highly positive labor market trends, the region continues to show high levels of employment precariousness and informality, low average wages and marked wage inequality. For this reason, policies to strengthen labor institutions should be accompanied by policies to promote employ...
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474 United Nations — Treaty Series • Nations Unies — Recueil des Traités 1979 No. 11821. CONVENTION (No. 131) CONCERNING MINIMUM WAGE FIXING, WITH SPECIAL REFERENCE TO DEVELOPING COUNTRIES. ADOPTED BY THE GENERAL CONFERENCE OF THE INTERNATIONAL LABOUR ORGANI SATION AT ITS FIFTY-FOURTH SESSION, GENEVA, 22 JUNE 19701...
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ADOPTED BY THE GENERAL CONFERENCE OF THE INTERNATIONAL LABOUR ORGANISATION AT ITS FIFTY-FIFTH SESSION, GENEVA, 30 OCTOBER 19702 RATIFICATIONS Instruments registered with the Director-General of the International Labour Office on: 8 June 1979 COSTA RICA (With effect from 8 June 1980.) No. 12677. CONVENTION (No. 136)...
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ADOPTED BY THE GEN ERAL CONFERENCE OF THE INTERNATIONAL LABOUR ORGANISATION AT ITS FIFTY-SIXTH SESSION, GENEVA, 23 JUNE 1971 s RATIFICATION Instrument registered with the Director-General of the International Labour Office on: 21 June 1979 ISRAEL (With effect from 21 June 1980.) 1 United Nations, Treaty Series, vol. ...
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2 Ibid., vol. 859, p. 95, and annex A in volumes 885, 940, 949, 958, 986, 1003, 1046, 1050, 1078 and 1102. 3 Ibid., vol. 885, p. 45, and annex A in volumes 894, 936, 945, 958, 965, 974, 990, 996, 1031, 1035, 1038, 1046 and 1050. Vol. 1141, A-11821, 12320,12677
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448 United Nations — Treaty Series • Nations Unies — Recueil des Traités 1976 No. 11821. CONVENTION (No. 131) CONCERNING MINIMUM WAGE FIXING, WITH SPECIAL REFERENCE TO DEVELOPING COUNTRIES. ADOPTED BY THE GENERAL CONFERENCE OF THE INTERNATIONAL LABOUR ORGANISATION AT ITS FIFTY-FOURTH SESSION, GENEVA, 22 JUNE 19701 ...
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No. 12659. CONVENTION (No. 135) CONCERNING PROTECTION AND FACILI TIES TO BE AFFORDED TO WORKERS' REPRESENTATIVES IN THE UNDERTAKING. ADOPTED BY THE GENERAL CONFERENCE OF THE INTERNATIONAL LABOUR ORGANISATION AT ITS FIFTY-SIXTH SESSION, GENEVA, 23 JUNE 1971 2 RATIFICATION Instrument registered with the Director-Gene...
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1 United Nations, Treaty Series, vol. 825, p. 77, and annex A in volumes 833, 854, 871, 885, 897, 940, 951,965, 986 and 1003. 2 Ibid., vol. 883, p. Ill, and annex A in volumes 894, 940, 958, 965, 970, 972, 974, 986, 990, 996 and 1007. Vol. 1010, A-11821, 12659
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Last updated: 2023-07-10 SDG indicator metadata (Harmonized metadata template - format version 1.1) 0. Indicator information (SDG_INDICATOR_INFO) 0.a. Goal (SDG_GOAL) Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all 0.b.
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Target (SDG_TARGET) Target 8.8: Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment 0.c. Indicator (SDG_INDICATOR) Indicator 8.8.2: Level of national compliance with labour rights (freedom of...
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Series (SDG_SERIES_DESCR) Not applicable 0.e. Metadata update (META_LAST_UPDATE) 2023-07-10 0.f. Related indicators (SDG_RELATED_INDICATORS) This indicator links with 8.8.1 & 8.b.1; 16.2.2; 16.10.1; 16.a.1; 16.b.1 0.g. International organisations(s) responsible for global monitoring (SDG_CUSTODIAN_AGENCIES) Internat...
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Definition, concepts, and classifications (IND_DEF_CON_CLASS) 2.a. Definition and concepts (STAT_CONC_DEF) Definition: The indicator measures the level of national compliance with fundamental rights at work (freedom of association and collective bargaining, FACB) for all ILO member states based on six international IL...
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It is based on the coding of textual sources against a list of evaluation criteria and then converting the coding into indicators. Concepts: Freedom of association and collective bargaining rights and their supervision Last updated: 2023-07-10 The principles of freedom of association and collective bargaining (FACB) a...
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These foundations have been established in the ILO’s Constitution (1919), the ILO Declaration of Philadelphia (1944), in two key ILO Conventions (namely the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87) and the Right to Organise and Collective Bargaining Convention, 1949 (No....
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They are also rights proclaimed in the Universal Declaration of Human Rights (1948) and other international and regional human rights instruments. With the adoption of the 1998 ILO Declaration, the promotion and realization of these fundamental principles and rights also became a constitutional obligation of all ILO m...
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They provide an essential foundation for social dialogue, effective labour market governance and realization of decent work. They are vital in enabling employers and workers to associate and efficiently negotiate work relations, to ensure that both employers and workers have an equal voice in negotiations, and that th...
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FACB rights are also salient because they are indispensable pillars of democracy as well as the process of democratization. FACB rights, together with other international labour standards, are backed by the ILO’s unique supervisory system. The ILO regularly examines the application of standards in member States and h...
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The ILO’s supervisory system includes two kinds of supervisory mechanisms: the regular system of supervision and the special procedures. The prior entails the examination of periodic reports submitted by member States on the measures taken to implement the provisions of ILO Conventions ratified by them.
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The special procedures, that is, representations, complaints and the special procedure for complaints regarding freedom of association through the Freedom of Association Committee, allow for the examination of violations on the basis of a submission of a representation or a complaint. 2.b.
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2.b. Unit of measure (UNIT_MEASURE) The unit of measurement is the number of coded evaluation criteria (see Tables 1-2 of https://www.ilo.org/wcmsp5/groups/public/---dgreports/--- stat/documents/meetingdocument/wcms_648636.pdf). 2.c. Classifications (CLASS_SYSTEM) Not applicable 3. Data source type and data collect...
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Reports of the Committee of Experts on the Application of Conventions and Recommendations; 2. Reports of the Conference Committee on the Application of Standards; 3. Country Baselines Under the ILO Declaration Annual Review; 4. Representations under Article 24 of the ILO Constitution; Last updated: 2023-07-10 5. Co...
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Report on the Committee on Freedom of Association. For non-ratifying countries, the method also codes relevant national legislation with the goal to offset information asymmetries between ratifying and non-ratifying countries as regards FACB rights in law. Ratifying countries are defined as those that have ratified b...
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Non-ratifying countries, on the other hand, fall into two categories, those that have ratified neither 87 nor 98 and those that have ratified only one of these Conventions. If a country has ratified only 87, its national legislation is coded for violations pertaining to 98, as violations under 87 fall under the remit ...
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Similarly, if a country has ratified only 98, its national legislation is coded for violations pertaining to 87. Note that for federal states, only federal-level legislation is coded. The coding of national legislation is carried out in close collaboration with the International Labour Office to ensure that it is don...
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In addition, countries may also make available information on national legislation when reporting on this indicator through Voluntary National Reports or national reporting platforms or any other national reports. 3.b.
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3.b. Data collection method (COLL_METHOD) Given that the statistical foundation of the indicator are the ILO textual sources (see above) and that those sources are themselves based on information provided by the Governments, workers’ and employers’ organizations, the data collection is carried out by the ILO. The dat...
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3.c. Data collection calendar (FREQ_COLL) Not applicable 3.d. Data release calendar (REL_CAL_POLICY) Data are released in February of each year. 3.e. Data providers (DATA_SOURCE) Given that the statistical foundation of the indicator are the ILO textual sources (see below) and that those sources are themselves base...
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3.f. Data compilers (COMPILING_ORG) International Labour Organization (ILO) 3.g. Institutional mandate (INST_MANDATE) Last updated: 2023-07-10 In 2018, the 20th International Conference of Labour Statisticians (ICLS) adopted a ‘Resolution concerning the methodology of the SDG indicator 8.8.2 on labour rights’.
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Point (b) of the resolution recommends that the International Labour Office communicate on behalf of the ICLS, the confirmation that the ILO should be the custodian agency for indicator 8.8.2, given that ILO textual sources are its statistical foundation.1 4. Other methodological considerations (OTHER_METHOD) 4.a.
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Rationale (RATIONALE) The indicator measures the level of national compliance with fundamental rights at work (freedom of association and collective bargaining, FACB) for all ILO member states based on the coding of six ILO supervisory body textual sources and also on national legislation against a list of evaluation c...
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4.b. Comment and limitations (REC_USE_LIM) Based on the consultation with the ILO’s tripartite constituents (i.e., representatives of government, employers’, and workers’ organizations), it was decided to prominently present the following chapeau text in the reporting of SDG indicator 8.8.2: “SDG indicator 8.8.2 seeks...
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It is based on six International Labour Organization (ILO) supervisory body textual sources and also on national legislation. National law is not enacted for the purpose of generating a statistical indicator of compliance with fundamental rights, nor were any of the ILO textual sources created for this purpose.
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Indicator 8.8.2 is compiled from these sources and its use does not constitute a waiver of the respective ILO Constituents’ divergent points of view on the sources’ conclusions.”2 To highlight the difference between ratifying and non-ratifying countries, the following additional clarification is provided: “SDG indicato...
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It should specifically be noted that reporting obligations of an ILO member State to the ILO’s supervisory system and thus ILO textual sources are different for ratifying and non‐ratifying ILO member States.”3 Based on the decisions adopted by the tripartite technical committee set up to further address refinements to ...
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P. 17 3 Idem. P. 18 4 Idem. PP.
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P. 18 4 Idem. PP. 1-2 of “Amendment: Refinements to the methodology for SDG indicator 8.8.2: Level of national compliance with labour rights (freedom of association and collective bargaining) based on ILO textual sources and national legislation, by sex and migrant status” Last updated: 2023-07-10 “The score should b...
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).”5 4.c. Method of computation (DATA_COMP) The method is based on the coding of textual sources (see above) against a list of evaluation criteria and then converting the coding into indicators. For the list of evaluation criteria, see Table 1 and 2 (pp. 6-12.)
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6-12.) at: https://www.ilo.org/wcmsp5/groups/public/---dgreports/--- stat/documents/meetingdocument/wcms_648636.pdf The indicator has a range from 0 to 10, with 0 being the best possible score (indicating higher levels of compliance with FACB rights) and 10 the worst (indicating lower levels of compliance with FACB ri...
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For the purpose of computation, in the first step, the coding of textual sources is transformed into a binary coding, with 1 assigned to observed non-compliance and 0 to no observed non-compliance (unweighted raw scores). The binary coding is then multiplied by the weights as derived from the Delphi method (weighted r...
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Using the Delphi Method to Construct Evaluation Criteria Weights The weights were constructed with the use of the Delphi method. The application of the Delphi method involved two rounds of surveys conducted via email of internationally-recognized experts in labour law having knowledge of the ILO’s supervisory system a...
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Applying the weights, normalization and default scores The raw coding uses the letters “a” through “g” (with each letter corresponding to one of the seven textual sources) to represent coded violations of FACB rights for each evaluation criteria, yielding a column of 180 cells for any given country and year.
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In order to apply the weights, any cell containing one or more letters is assigned a value of 1 and any blank cell for which there are no coded violations is assigned a value of 0, creating a binary coding column. The number of letters in a cell does not affect the construction of the binary coding column, in order to...
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The cells of the column of weights are then multiplied by corresponding cells of the binary coding column and summing across the cells of the resultant column yields a weighted non-normalized score for any given country and year. To normalize the indicators over time, 95 is assigned as the maximum weighted non-normali...
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This roughly equals to the maximum weighted non-normalized score of one-half of the countries having the most coded violations of FACB rights of workers and their organizations for the years 2000, 2005, 2009 and 2012. The highest weighted non-normalized score for several countries hovered around 80. On this basis, th...
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In the future, if any country should 5 Idem.
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P. 1 of “Amendment: Refinements to the methodology for SDG indicator 8.8.2: Level of national compliance with labour rights (freedom of association and collective bargaining) based on ILO textual sources and national legislation, by sex and migrant status” Last updated: 2023-07-10 receive a non-normalized score of grea...
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In terms of coding, this means that – both for workers and employers - the direct coding of “General prohibition of the right to establish and join organizations” in law automatically triggers the coding of “General prohibition of the development of independent organizations” in practice; the direct coding of “General ...
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Based on the decisions adopted by the tripartite technical committee set up to further address refinements to the methodology, in addition to the above normalization rules, a “load” of 3.5 will be added to the normalized score of the country in cases of all-encompassing violations of FACB rights, that is, for “General ...
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Table 1. Hypothetical Example of Coding and Indicator Construction (for a Single Country and Year) Evaluation Criteria 2 6 9 Ia. Fundamental civil liberties in law Infringements of trade unionists' basic freedoms Ib.
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Fundamental civil liberties in practice Killing or disappearance of trade unionists in relation to their trade union activities Other violent actions against trade unionists in relation to their trade union activities 12 Arrest, detention, imprisonment, charging and fining of trade unionists in relation to their trade ...
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Right of workers to establish and join organizations in law Exclusion of workers from the right to establish and join organizations Lack of adequate legal guarantees against anti-union discriminatory measures Infringements of the right to establish and join federations/confederations/international organizations IIb.
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Right of workers to establish and join organizations in practice Previous authorization requirements 24 30 33 37 Textual coding Binary coding Weights Binary coding x Weight s a af af af a a abf 1 1 1 1 1 1 1 1,93 1,93 2,00 2,00 1,82 1,82 1,95 1,95 1,86 1,86 1,75 1,75 1,73 1,73 af 1 1,70 1,70 6 The formula is thus: (x*1...
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Last updated: 2023-07-10 42 43 49 50 52 Committed against trade union officials re violation no. 41 Lack of guarantee of due process and/or justice re violation no. 41 IIIa. Other union activities in law Infringements of the right to freely elect representatives Infringements of the right to freely organize and cont...
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Right to collective bargaining in practice Exclusion of workers from the right to collective bargaining f f a ab ab a a Sum (non-normalized score) Normalized score (0 = best, 10 = worst)1 1 1 1 1 1 1 1 15 1,89 1,89 1,80 1,80 1,80 1,80 1,59 1,59 1,73 1,73 1,66 1,66 1,84 1,84 27,05 2,85 1 The formula used is: (x*10/95), ...
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4.d. Validation (DATA_VALIDATION) The indicator is based on three key premises: (i) definitional validity – the extent to which the evaluation criteria and their corresponding definitions accurately reflect the phenomena they are meant to measure; (ii) transparency – how readily a coded violation can be traced back to...
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Definitional validity. As these are meant to be indicators of international FACB rights, the evaluation criteria and their corresponding definitions are directly based on the ILO Constitution, ILO Conventions No. 87 and 98 and the related body of comments of the ILO supervisory bodies.7 Given that the ILO supervisory...
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