Multidimensional Measure of Job Quality: Persistence and Heterogeneity in a Developing Country

We adapt the multidimensional poverty methodology to study job quality dynamics using a unique household survey panel for Chile. We use information on wages, type of contract, training and employment duration to build an aggregate job quality index. Panel data allow us to properly separate individual heterogeneity and true dependence. We estimate a dynamic panel with random effects finding higher job quality among larger and unionised firms. Moreover, labor history predicts job quality confirming the existence of persistence in job quality.