USAGE OF ADMINISTRATIVE USAGE OF ADMINISTRATIVE DATA IN EU-SILC SURVEYDATA IN EU-SILC SURVEY

Signe BāliņaSigne Bāliņa

University of LatviaUniversity of Latvia

EU-SILCEU-SILC

EU-SILC EU-SILC - - EEuropean uropean UUnion nion SStatistics tatistics on on IIncome and ncome and LLiving iving CConditionsonditions EU-SILC is expected to become the EU EU-SILC is expected to become the EU

reference source for comparative statistics reference source for comparative statistics on income distribution and social exclusion on income distribution and social exclusion at European levelat European level

The Main Purpose and Main TasksThe Main Purpose and Main Tasks

The main purposeThe main purpose To analyse the possibility of the usage of Latvian To analyse the possibility of the usage of Latvian

administrative registers for collecting income data administrative registers for collecting income data necessary for EU-SILC surveynecessary for EU-SILC survey

Main tasksMain tasks Gathering of information on existing administrative Gathering of information on existing administrative

income registers and the analysis of themincome registers and the analysis of them The analysis of possible links and integration The analysis of possible links and integration

between data from EU-SILC survey and between data from EU-SILC survey and administrative registersadministrative registers

EU-SILCEU-SILC

EU-SILC EU-SILC The reference population - all private households and their

current members (16+) Annual data:

Cross-sectional data pertaining to a given time or a certain time period with variables on income, poverty, social exclusion and other living conditions

Longitudinal data pertaining to individual-level changes over time, observed periodically over a four year period

Sample size in Latvia:Sample size in Latvia: 3750 3750 households per yearhouseholds per year 7650 persons (16+)7650 persons (16+)

EU-SILC EU-SILC PilotPilot

PopulationPopulation – – all private households and their all private households and their members members (16+)(16+)

The method of sampling – a two-stage stratified The method of sampling – a two-stage stratified random sample of householdsrandom sample of households

Sample sizeSample size 500 500 householdshouseholds The financial resources of the pilot survey allowed to The financial resources of the pilot survey allowed to

survey 200 responding households survey 200 responding households ((fromfrom 328, 328, response response level level 61%)61%)

In 200 responding households there were 505 persons In 200 responding households there were 505 persons from whom 408 persons (16+) from whom 408 persons (16+)

EU-SILC EU-SILC PilotPilot

The income data reference period in Latvian The income data reference period in Latvian pilot survey was the preceding calendar year pilot survey was the preceding calendar year (year 2003), which for the respondents is a (year 2003), which for the respondents is a clear and unambiguous categoryclear and unambiguous category

The information gathering methodThe information gathering method – – direct direct interviewinterview Household questionerHousehold questioner Person Person questionerquestioner

Identification of Persons and Related Identification of Persons and Related ProblemsProblems

All permanent residents of Latvia have a unique person All permanent residents of Latvia have a unique person identification codeidentification code The person ID code can be effectively used as a key variable for The person ID code can be effectively used as a key variable for

merging different data basesmerging different data bases During the interviews of the 1st wave of the EU-SILC pilot survey During the interviews of the 1st wave of the EU-SILC pilot survey

the person ID code was not registered: it was suspected that the person ID code was not registered: it was suspected that registration of the person ID code may significantly decrease the registration of the person ID code may significantly decrease the survey response ratesurvey response rate After the 1st wave the person ID code was identified for 311After the 1st wave the person ID code was identified for 311 persons persons

or or 60% 60% of respondentsof respondents In the 2nd wave respondents were asked also about their person ID In the 2nd wave respondents were asked also about their person ID

code:code: 485 person ID codes were identified485 person ID codes were identified For 20 persons identification of their person ID codes was impossibleFor 20 persons identification of their person ID codes was impossible

Income Information of Administrative Income Information of Administrative RegistersRegisters

The main information sourcesThe main information sources:: State Revenue Service (SRS)State Revenue Service (SRS)::

Monthly employers statutory declaration of income and tax about Monthly employers statutory declaration of income and tax about their employeestheir employees

Statutory annual income declarations for self-employed persons Statutory annual income declarations for self-employed persons (till April of the next calendar year)(till April of the next calendar year)

The annual tax declaration of any tax payer (on voluntary base)The annual tax declaration of any tax payer (on voluntary base) Specifying all income from different sourcesSpecifying all income from different sources Calculated and withhold taxesCalculated and withhold taxes Expenses redeemed from taxes (including contributions to Expenses redeemed from taxes (including contributions to

the private pension funds)the private pension funds) State Social Insurance Agency informationState Social Insurance Agency information (SSIA)(SSIA)

Different type of pensionsDifferent type of pensions Social benefits and allowances paid to Latvian residentsSocial benefits and allowances paid to Latvian residents

Information from SRSInformation from SRS

Information Information requested aboutrequested about 485 person485 person

Received income Received income and tax information and tax information about 201 persons, about 201 persons, from who were from who were 178 178 respondentrespondentss

Income source Frequency

Wages and salaries 189

Income declaration 13

Dividends 28

Income from partnership 1

Income from intellectual property

1

Pensions 8

Sickness benefits 1

Other incomes 1

TOTAL 242

Persons' Status at the Time of EU-SILC Persons' Status at the Time of EU-SILC Pilot Study, no Information from SRS Pilot Study, no Information from SRS

Darba un ikdienas aktivitātesDarba un ikdienas aktivitātes FrequencyFrequency

Working full time 88

Working part-time 66

Unemployed 1515

Pupil, student, further training, unpaid work experience 1818

In retirement or in early retirement 9797

Permanently disabled or/and unfit to work 44

Fulfilling domestic tasks 1212

Other inactive person 4545

Persons under 16 years 7979

TOTAL 284284

Possible Information from SSIAPossible Information from SSIA

The SSIA register contains income information of The SSIA register contains income information of several respondent groups of the EU-SILC survey:several respondent groups of the EU-SILC survey: pensioners – pensioners – 30.5%30.5% of respondents of respondents unemployed persons – unemployed persons – 7.5%7.5% of respondents of respondents persons receiving sickness benefits – persons receiving sickness benefits – 4.0%4.0% of respondents of respondents persons receiving disability benefits – persons receiving disability benefits – 3.3%3.3% of respondents of respondents persons receiving maternity benefit – persons receiving maternity benefit – 2.5%2.5% of respondents of respondents

In the SSIA register it is possible to find some income In the SSIA register it is possible to find some income information of more than information of more than 40%40% of all respondents of the of all respondents of the EU-SILC pilot surveyEU-SILC pilot survey

Information about Wages and Information about Wages and SalariesSalaries

EU-SILC TotalAvailable Not

Available

Information about wages

and salaries from SRS 128 59 187

Information about other type of income from SRS

1 13 14

TOTAL 129 72 201

Gross Wages and Salaries (Annual Data)Gross Wages and Salaries (Annual Data)

Frequency % Cumulative %

Gross income in EU-SILC > Gross income in SRS

13 18.8 18.8

10% 29 42.0 60.9

Gross income in SRS >

Gross income in EU-SILC 27 39.1 100.0

TOTAL 69 100.0

Gross Wages and SalariesGross Wages and Salaries, , Annual Annual Data (n=69)Data (n=69)

Coefficient of correlation Coefficient of correlation 0.983, p0.983, p-value-value < 0.01 < 0.01

SRSSRS:: AverageAverage wagewage Ls 2956.71 Ls 2956.71 MedianMedian Ls 1824.86 Ls 1824.86

EU-SILCEU-SILC AverageAverage wagewage Ls 2663.91 Ls 2663.91 MedianMedian Ls 1509.00 Ls 1509.00

Annual gross income (EU-SILC data)

400003000020000100000

An

nu

al g

ross

inco

me

(S

RS

da

ta)

40000

30000

20000

10000

0

Gross Wages and Salaries, Monthly DataGross Wages and Salaries, Monthly Data

Frequency % Cumulative %

Gross income in EU-SILC > Gross income in SRS

4 30.8 30.8

10% 5 38.5 69.2

Gross income in SRS >

Gross income in EU-SILC 4 30.8 100.0

TOTAL 13 100.0

Gross Wages and Salaries, Monthly Gross Wages and Salaries, Monthly Data (n=13)Data (n=13)

Coefficient of correlation Coefficient of correlation 0.1390.139,,== p p-value-value = = 0.6510.651 > 0.05 > 0.05

Gross wages and salaries, EU-SILC

70006000500040003000200010000

Gro

ss w

ag

es

an

d s

ala

rie

s, S

RS

5000

4000

3000

2000

1000

0

Net Wages and Salaries, Annual DataNet Wages and Salaries, Annual Data

Frequency % Cumulative %

Gross income in EU-SILC > Gross income in SRS

38 38 38

10% 28 28 66

Gross income in SRS >

Gross income in EU-SILC 34 34 100

TOTAL 100 100

Net Wages and SalariesNet Wages and Salaries, , Annual Data Annual Data (n=100)(n=100)

Coefficient of correlation Coefficient of correlation 0.884, p0.884, p-value-value < 0.01 < 0.01

SRSSRS:: Average wageAverage wage Ls 1944.98 Ls 1944.98 MediMediaan Ls 1211.21n Ls 1211.21

EU-SILCEU-SILC Average wageAverage wage Ls 2115.94 Ls 2115.94 MediMediaan Ls 1480.00n Ls 1480.00

Net wages and salaries, EU-SILC

3000020000100000

Ne

t w

ag

es

an

d s

ala

rie

s, S

RS

30000

20000

10000

0

Net Wages and SalariesNet Wages and Salaries, , Monthly Monthly Data (n=23)Data (n=23)

Coefficient of correlation Coefficient of correlation 0.80.86464, p, p-value-value < 0.0 < 0.011

Net wages and salaries, EU-SILC

50000400003000020000100000-10000

Ne

t w

ag

es

an

d s

ala

rie

s, S

RS

10000

8000

6000

4000

2000

0

ConclusionsConclusions

Inclusion of a person identification code in the EU-SILC Inclusion of a person identification code in the EU-SILC questionnaire is necessary questionnaire is necessary

It is no significant difference in annual gross/net wages It is no significant difference in annual gross/net wages and salaries from SRS and EU-SILC dataand salaries from SRS and EU-SILC data

It is a significant difference in annual gross/net wages It is a significant difference in annual gross/net wages and salaries from SRS and EU-SILC dataand salaries from SRS and EU-SILC data

It is necessary to solve the existing legislation It is necessary to solve the existing legislation problems in usage of the person level income data problems in usage of the person level income data from SSIA registerfrom SSIA register

ConclusionsConclusions

The usage of register dataThe usage of register data:: Allows significant reduction of the response burden Allows significant reduction of the response burden

for persons participating in the EU-SILC surveyfor persons participating in the EU-SILC survey Allows obtaining detailed and more complete Allows obtaining detailed and more complete

income data on wages and salariesincome data on wages and salaries Promotes the survey response ratePromotes the survey response rate Improves the total quality of the surveyImproves the total quality of the survey