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Regional Workshop for African Countries on Compilation Regional Workshop for African Countries on Compilation of Basic Economic Statistics of Basic Economic Statistics Pretoria, 23-26 July 2007 Pretoria, 23-26 July 2007 Administrative Data Administrative Data and their Use in and their Use in Economic Statistics Economic Statistics Vladimir Markhonko Vladimir Markhonko United Nations Statistics Division United Nations Statistics Division
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Page 1: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Regional Workshop for African Countries on Compilation of Basic Regional Workshop for African Countries on Compilation of Basic Economic StatisticsEconomic Statistics

Pretoria, 23-26 July 2007Pretoria, 23-26 July 2007

Administrative Data and Administrative Data and their Use in Economic their Use in Economic

StatisticsStatistics

Vladimir MarkhonkoVladimir MarkhonkoUnited Nations Statistics DivisionUnited Nations Statistics Division

Page 2: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 22

ContentsContents

DefinitionsDefinitions Advantages of using administrative Advantages of using administrative

datadata Common problemsCommon problems Quality of administrative dataQuality of administrative data Using administrative data in practiceUsing administrative data in practice ConclusionsConclusions

Page 3: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 33

Definition of

administrative data

narrow definition

wider definition

Page 4: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 44

Narrow Definition of Administrative Data

Data available in records of governmental agencies administering various governmental programmes

Examples: tax records, customs declarations, social security records

Page 5: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 55

Wider Definition of Wider Definition of Administrative DataAdministrative Data

Data available in records of

Governmental agencies +Organizations operating in private sector

Page 6: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 66

Administrative sources of data are sources containing information which is not primarily collected for statistical purposes.

Page 7: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 77

Reasons for a wider definitionReasons for a wider definition

Privatisation of some governmental Privatisation of some governmental functionsfunctions

Growth of private sector organizations Growth of private sector organizations collecting statistically significant data collecting statistically significant data

User interest in new types of data which User interest in new types of data which might not be collected by NSOsmight not be collected by NSOs

Cost efficiency Cost efficiency

Page 8: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 88

Benefits of Administrative DataBenefits of Administrative Data

CostCost Surveys / censuses are expensive, Surveys / censuses are expensive,

administrative data are often “free”administrative data are often “free”

Response burdenResponse burden Reduced burden on data suppliersReduced burden on data suppliers Statistics can be compiled more Statistics can be compiled more

frequently with no extra burdenfrequently with no extra burden

Page 9: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 99

CoverageCoverage Full coverage of target populationFull coverage of target population No survey errors and lower non-responseNo survey errors and lower non-response Better small-area dataBetter small-area data

Timeliness Timeliness can be improved for some types of data but can be improved for some types of data but

not for allnot for all

Public imagePublic image National statistical office is perceived as National statistical office is perceived as

more efficient both in terms of cutting costs more efficient both in terms of cutting costs and provision of better dataand provision of better data

Page 10: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 1010

An example: population census costs for An example: population census costs for some European countries in 2000-2001some European countries in 2000-2001

UKUK - €6.2 per person - €6.2 per person Austria - €6.9 per personAustria - €6.9 per person Finland - Finland - €0.2€0.2 per person per person

due to extensive use of administrative due to extensive use of administrative datadata

Source: Eurostat – Documentation of the 2000 Source: Eurostat – Documentation of the 2000 round of population and Housing censuses in the round of population and Housing censuses in the EU, EFTA and Candidate Countries; Table 22EU, EFTA and Candidate Countries; Table 22

Page 11: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 1111

Typical problemsTypical problems

Administrative units do not always Administrative units do not always coincide with statistical unitscoincide with statistical units

Need to perform data conversionNeed to perform data conversion Difficulty in profiling of the more Difficulty in profiling of the more

complex casescomplex cases Gives a better understanding of Gives a better understanding of

complex business structurescomplex business structures Expensive and needs trained staffExpensive and needs trained staff

Page 12: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 1212

Different definitions and classificationsDifferent definitions and classifications Conversion tables needed for different Conversion tables needed for different

classificationsclassifications Administrative and statistical priorities Administrative and statistical priorities

are often differentare often different TimelinessTimeliness

Data may arrive too lateData may arrive too late Data relate to a different time periodData relate to a different time period

Page 13: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 1313

Change managementChange management Risk of changes in government Risk of changes in government

policy, thresholds, definitions, policy, thresholds, definitions, coverage etc.coverage etc.

Need contingency plansNeed contingency plans

Data from multiple sourcesData from multiple sources Matching / linking issuesMatching / linking issues Data conflicts – priority rulesData conflicts – priority rules

Page 14: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 1414

Administrative data will be better Administrative data will be better than survey data in some aspects than survey data in some aspects but not in othersbut not in others

It is important to look at overall It is important to look at overall qualityquality

Do the data quality meet the needs Do the data quality meet the needs of users?of users?

Quality of Administrative Data

Page 15: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 1515

Three Aspects of QualityThree Aspects of Quality

Quality of incoming dataQuality of incoming data

Quality of processingQuality of processing(matching, merging, ...)(matching, merging, ...)

Quality of outputs - likely to be Quality of outputs - likely to be different to survey based outputs, different to survey based outputs, but are they better?but are they better?

Page 16: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 1616

Quality MeasurementQuality Measurement How to measure the quality of How to measure the quality of

data from administrative data from administrative sources?sources? Comparing sourcesComparing sources Quality check surveysQuality check surveys Knowledge of source (metadata)Knowledge of source (metadata) Quality reportsQuality reports

Page 17: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 1717

Using Administrative DataUsing Administrative Data Conversion to statistical concepts and Conversion to statistical concepts and

definitionsdefinitions Linking / MatchingLinking / Matching

Exact MatchingExact Matching - linking records from two - linking records from two or more sources, often using common or more sources, often using common identifiers – unique identifier of unitsidentifiers – unique identifier of units

Probabilistic MatchingProbabilistic Matching - determining the - determining the probability that records from different probability that records from different sources should match, using a sources should match, using a combination of variablescombination of variables

Page 18: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 1818

Shift in paradigm:Shift in paradigm:

Some statistical offices prefer first to Some statistical offices prefer first to create a database populated with create a database populated with administrative data and use statistical administrative data and use statistical surveys only to fill the gapssurveys only to fill the gaps

Implies a high degree of trust in quality Implies a high degree of trust in quality of administrative dataof administrative data

Page 19: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 1919

ConclusionsConclusions

Administrative sources should be Administrative sources should be defined in the widest sensedefined in the widest sense

There are many benefits in using There are many benefits in using administrative data, particularly the administrative data, particularly the reduced costs of data and better reduced costs of data and better coveragecoverage

There are problems when using There are problems when using administrative data, but an acceptable administrative data, but an acceptable solution usually can be foundsolution usually can be found

Page 20: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

Vladimir Markhonko 12/7/2007Vladimir Markhonko 12/7/2007 2020

Most problems can be solved by Most problems can be solved by effective planning and detailed effective planning and detailed knowledge of the sourceknowledge of the source

The benefits are greater than the The benefits are greater than the problems encounteredproblems encountered

UNSD plans to prepare a Handbook on UNSD plans to prepare a Handbook on Use of Administrative Data and put Use of Administrative Data and put good country practices on its website.good country practices on its website.

Page 21: Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, 23-26 July 2007 Administrative Data and their Use in Economic.

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Thank you for your attention.Thank you for your attention.


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