Analysis of the Vocational and Residential Preferences of a Rural Population: Application of an Experimental Technique to Rural Slovenia

Abstract

This study applies choice experiments to the analysis of the relative importance of both monetary and non-monetary determinants of vocational choice and spatial labour supply. It identifies the determinants of individuals’ choice of jobs and places of residence, and provides a better understanding of how rural labour adjustments might be managed in a country in transition. The results indicate that while wages are the most important factor influencing employment choice, other determinants affecting working conditions and residence do have a counterbalancing impact on choice. Results suggest that sample respondents do appear to be relatively immobile between sectors and also in terms of migration and commuting. However, our results do identify a range of non-wage determinants that might be used to stimulate mobility.

Abstract

Analyse des préférences professionnelles et résidentielles de la population rurale: application d'une technique expérimentale en Slovénie rurale

Cette étude applique des expériences de choix à l'analyse de l'importance relative des déterminants à la fois monétaires et non monétaires du choix professionnel et de la main-d’œuvre spatiale disponible. Elle identifie les déterminants du choix des individus pour leurs emplois et lieux de résidence, et fournit une meilleure compréhension de la façon dont les ajustements en main-d’œuvre de zone rurale peuvent être gérés dans un pays en pleine transition. Les résultats indiquent que tandis que les salaires représentent le facteur le plus important dans l'influence du choix d'un emploi, d'autres déterminants affectant les conditions de travail et de résidence ont réellement un impact de force égale sur ce choix. Les résultats suggèrent que les répondants échantillonnés apparaissent bien comme étant relativement immobiles entre secteurs ainsi qu'au niveau de la migration et des trajets quotidiens. Toutefois, nos résultats identifient un éventail de déterminants non liés aux salaires qui peuvent s'utiliser pour stimuler la mobilité.

Abstract

Un análisis de preferencias vocacionales y residenciales de la población rural: aplicación de una técnica experimental en la Eslovenia rural

Este estudio aplica experimentos de elección al análisis de la importancia relativa de determinantes, tanto monetarias como no monetarias, en la elección vocacional y la oferta laboral espacial. Identifica las determinantes de las elecciones individuales de trabajo y lugar de residencia y proporciona una mejor comprensión de cómo podrían gestionarse los ajustes laborales rurales en un país en transición. Los resultados revelan que mientras los sueldos son el factor más importante en determinar la elección del empleo, otras determinantes que afectan las condiciones de trabajo y el lugar de residencia sí tienen un impacto desequilibrante en la elección. Los resultados sugieren que los respondientes de la muestra sí parecen ser relativamente inmóviles entre los sectores, y también en términos de migración y viajes diarios entre el lugar de residencia y el trabajo. Sin embargo, nuestros resultados identifican, por cierto, una gama de determinantes distintas al sueldo que podrían utilizarse para estimular la movilidad.

Keywords:

• Keywords: Choice experiments
• labour supply
• commuting
• rural

Keywords:

• C35
• J29
• P25
• R23

Acknowledgements

The research for this paper was supported by the EU Fifth Framework Programme, REAPBALK Project QLK-5-CT- 2001-01608. The authors are grateful to Emil Erjavec, Luka Juvancic and Vida Hocevar who organized the data collection and provided insights into the studied region, and Ales Zver who participated in the interviews.

Notes

1. The fractional factorial was formed with the SPSS software ‘Generate Orthogonal Design’ command.

2. The efficiency of shifted design has been acknowledged recently in the literature (Ferrini & Scarpa, 2005).

3. This is to say that the applied design was not ‘alternative specific’ (Zwerina et al., 1996).

4. The descriptive statistics are reported in Appendix Table A2.

5. The descriptive statistics are reported in Appendix Table A2.

6. The coding of variables is reported in Appendix Table A3.

7. The test resulted in a chi-squared statistic of 21.8261(19) with a probability P of 0.292996 when scenario A was excluded. When scenario B was excluded, the test produced a chi-squared statistic of 14.017(19) with a probability P of 0.7827. The critical chi-square value at the 95% level is 30.144 at 19 df.

8. The impact on the results of all-status quo respondents, dominant respondents and dominant options was assessed. This was done after the results were obtained as the a priori analysis of the cards did not reveal the presence of potential dominant options or unrealistic scenarios. This assessment indicated the lack of important differences. For this reason, all sample respondents and all designed choice cards were considered in the analysis. The results of the different variants of the model are available on request.

9. Detailed results of these tests are reported in Appendix Table A4.

10. Owing to the large number of interaction coefficients only the significant ones are reported in Table 4, while the remaining ones are reported in Appendix Table A5.

11. This suggests that commuting has an important cost that may have considerably affected the respondents’ strategy. As no indication of the cost of commuting was given to respondents, each respondent has likely considered their current commuting pattern and cost when trading-off among alternatives.