E-frame conference, Paris, 26-28 June 2012
Income inequalities
Denis Leythienne and Liviana Mattonetti (Eurostat)
E-frame conference, Paris, 26-28 June 2012
I. MILESTONES
2007: ‘Beyond GDP’ Conference (OECD/EC/EP/Club of Rome/WWF).
2008/2009: Stiglitz/Sen/Fitoussi Commission on the ‘Measurement of Economic Performance and Social Progress’. Communication of the Commission: ‘Beyond GDP’
2010: The European Council adopts Agenda 2020 for a ‘smart, sustainable and inclusive growth’
2011: Report of the ESS Sponsorship on SSF recommendations
2012: First implementation of ESS / Sponsorship recommendations in the field of material wellbeing
E-frame conference, Paris, 26-28 June 2012
II. EUROPEAN RECOMMENDATIONS
Main indicator of material wellbeing:
Household Gross Disposable Income (GDI)
Adjusted for social transfers in kind
(Goods and services in health, education etc… financed by government)
In real terms
(in PPS / deflated for comparisons over space / time)
Per capita (ideally per consumption unit)
E-frame conference, Paris, 26-28 June 2012
II. EUROPEAN RECOMMENDATIONS
Macro-aggregates
Publish and analyse annual data on adjusted GDI / actual consumption of households, per capita / CU, in Purchasing Power Standards (PPS)
Publish jointly, within the ESS, quarterly data on adjusted GDI of households per capita, in real terms, possibly seasonally adjusted
E-frame conference, Paris, 26-28 June 2012
II. EUROPEAN RECOMMENDATIONS
Income distribution
Use the adjusted GDI of households as the reference concept to link National Accounts (NA) data with social statistics
Agree at international level on a methodology to link NA data with social statistics in order to breakdown adjusted GDI by category of households
Estimate, in a second step, the growth rate of adjusted GDI / actual consumption by category of households
Collect, if deemed necessary, additional micro-data to better impute social transfers in kind at the micro level
E-frame conference, Paris, 26-28 June 2012
III. IMPLEMENTATION
Macro aggregates – quarterly data:
October 2012: Eurostat re-focuses its quarterly household news release on adjusted GDI per capita in real terms (seasonally adjusted)
2012/2014: The ESS implements a standard template for the dissemination of quarterly household data
Cumulated growth of GDP versus Gross Disposable Income of households (total / per capita)Euro area, in volume / real terms, seasonally adjusted data, 2005Q1= 100
100
101
102
103
104
105
106
107
108
109
110
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2005 2006 2007 2008 2009 2010
GDP Gross Disposable Income Gross Disposable Income per capita
E-frame conference, Paris, 26-28 June 2012
III. IMPLEMENTATION
Macro aggregates – annual data:
February 2012: Annual data on Adjusted GDI per capita in PPS released by Eurostat (t_nasa\tec00113 in Eurobase)
June 2012: Publication of a Statistics in Focus on the impact of the crisis on the material wellbeing of households (adjusted GDI and actual consumption)
Contribution of components to the 2007-2010 growth of adjusted GDI of households(Euro area, percentages)
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
BG PL NO SK CY SE FI BE
DK PT CZ SI FR RO NL
UK DE
EU 2
7 ES
EA17 A
T IE IT EE HU EL LT LV
Current taxes paid (-) Net wages
Gross operating surplus + gross mixed income (incl. other transfers) Net property income
Social transfers in kind received Social benefits
Gross adjusted disposable income
E-frame conference, Paris, 26-28 June 2012
III. IMPLEMENTATION
Income distribution:
Eurostat/OECD Expert Group (EGDNA) set-up to study the
methodological aspects of income distribution in OECD countries
A minima exercise carried out by Eurostat on the basis of harmonized data available at European level
End 2012/Early 2013: first results of EGDNA / Eurostat estimates for the breakdown of household income and consumption per household/CU by category of households
2013: improved imputation of social transfers in kind (Eurostat)
E-frame conference, Paris, 26-28 June 2012 11
Gross Disposable Income: EU-SILC coverage of NA totals(First results of the a minima exercise)
11
0
20
40
60
80
100BE
CZ
DK
DE
EE
IE
EL
ES
FR
IT
CY
LV
LT
LU
HU
NL
AT
PL
PT
SI
SK
FI
SE
UK
NO
CHB.6g
EU27
100%
EU-SILC in % of
NAPT 64.2EL 67.4SK 68.6LV 72.7CZ 73.9HU 74.2LT 74.3ES 75.8DE 77.0PL 77.9UK 78.2SI 80.0AT 80.4EU27 80.6IT 82.4BE 83.9FR 87.4NL 87.4EE 90.3IE 90.8FI 93.8CY 95.2LU 96.2CH 97.7DK 98.0SE 100.0NO 104.4
E-frame conference, Paris, 26-28 June 2012
III. IMPLEMENTATION
Next steps of the a minima exercise: July 2012: Breakdown of income data for a test country
– Imputations/adjustments on EU-SILC and NA data (e.g. property income / social transfers in kind)
– Sensitivity analysis
– Discussion of the results within the EGDNA framework
Autumn 2012: Extension of the breakdown to the remaining countries of EU27 and EFTA
December 2012: Publication of first results on income distribution within EU and EFTA countries
E-frame conference, Paris, 26-28 June 2012
Questions / Comments ?