Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data Luxemburg, 29-30 June 2009

administrative burden Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data The aim of action meeting users’ requirements reduction of administrative burden on enterprises data quality improvement Luxemburg, 29-30 June 2009

use administrative data for statistical surveys Method for improving quality of business statistics by wider use of administrative data The main expected result of the project is to work out methodological solutions which enable to use administrative data for statistical surveys on micro-enterprises direct source of data indirect source of data resulting in: reduction of the scope of the questionnaire (both subjective and objective scope), wider scope of statistical characteristics examined without the increase of administrative burden on enterprises. Luxemburg, 29-30 June 2009

INDIRECT USAGE OF ADMINISTRATIVE DATA AS A SOURCE Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data DIRECT SOURCE INDIRECT USAGE OF ADMINISTRATIVE DATA AS A SOURCE the use administrative data to fill survey variables of additional information (stratification information) to improve the efficiency of the sample design for indirect estimations and calculations on the base of micro-enterprises sample survey. of auxiliary variables Luxemburg, 29-30 June 2009

What actions have been carried out so far? Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data What actions have been carried out so far? Analysis and specification of users’ information needs. Analysis of the methodological consistency and conformity between administrative and statistical systems. Project of methodology for direct or indirect usage of administrative data. Formulation of the principles for data base of micro-enterprises. Luxemburg, 29-30 June 2009

1. Analysis and specification of users’ information needs: Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data 1. Analysis and specification of users’ information needs: Within the framework of the Project there was prepared survey questionnaire for user of statistical information referring to micro-enterprises. It contains following questions: General information about users of micro-enterprise statistic provided by public statistic; Information concerning the scope of disseminated data about micro-enterprises for example: which a field of economy they are interested, what information about micro-enterprise is or will be useful, what cross sections are needed, what publications are of the most interest; Information concerning quality aspects: about timelines, frequency, comparability, access and usefulness of metadata. Luxemburg, 29-30 June 2009

Administrative source recognized for potential usage Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data 2. Analysis of the methodological consistency and conformity between administrative and statistical systems. The MikroPik System was specially designed and built under the Project. We listed indispensable data sets by means of dedicated software containing the database of administrative systems metadata (MikroPIK). Terms and classifications Administrative source describing variables recognized for potential usage for statistical needs Luxemburg, 29-30 June 2009

Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data System MikroPIK serves verification of terms and classifications between administrative and statistical systems and consists of 3 applications: MikroPIK Administration – enables the management of people working in this system. Luxemburg, 29-30 June 2009

Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data MikroPIK Registration - enables the registration of statistical and administrative terms and classification MikroPIK Verification - enables comparison between terms and classifications found in statistical and administrative systems Luxemburg, 29-30 June 2009

Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data Picture 1. Photograph of MikroPIK Registration – concerning the registration of terms from administrative systems Luxemburg, 29-30 June 2009

Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data Picture 2. Photograph of MikroPIK Registration – concerning the registration of classifications from administrative systems Luxemburg, 29-30 June 2009

Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data Picture 3. Photograph of MikroPIK Verification – allows the review of connected terms from administrative and statistical systems. Luxemburg, 29-30 June 2009

Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data Picture 4. Application MikroPIK Verification – enables the connection of statistical and administrative terms. Luxemburg, 29-30 June 2009

The level of conformity of terms Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data Results of work connections between statistical and administrative terms The level of conformity of terms The number of terms identical 10 similar 38 corresponding 55 different 26 no conformity 13 Luxemburg, 29-30 June 2009

The level of conformity of terms Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data connections between statistical and administrative classifications The level of conformity of terms The number of terms identical 1 similar corresponding different no conformity 5 Luxemburg, 29-30 June 2009

Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data Examples of connections terms statistical administrative comments identical gender similar Employed on full time basis Personal wages and salaries Employed on time basis Revenue of employment Having the exact number of working hours of insured persons we can calculate the full time basis Lack in administrative definition information about compensations for injuries and occupational diseases corresponding Legal person Employed Tax payer Insured/Employed Not every tax payer is the legal person Statistical definition don’t include employed on the basis of order-agreement different Code of Polish Classification Activities Symbol of predominant activity Luxemburg, 29-30 June 2009

Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data 3. Project of methodology for direct or indirect usage of administrative data. Conducting computations and making simulations of the use of the projected methodology in order to assess effects of its application. DIRECT SOURCE The use administrative data to fill survey variables Luxemburg, 29-30 June 2009

Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data Ministry of Finance National Health Fund Administrative system VAT only for some units PIT/CIT KEP Administrative data Income Due tax Calculated tax Kind of activity Identification characteristics Statistical data Income, costs Costs Fixed assets costs Information about NHF services Direct usage Indirect estimation Improvement of the efficiency of the sample design Luxemburg, 29-30 June 2009

Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data Information from the Ministry of Finance within the scope of VAT is characterized by low conformity with statistical needs what considerably limits and decreases possibility of its direct usage, in this case the additional estimations are indispensable. Data from PIT/CIT systems are in accordance with statistical requirements and they would allow the direct usage, however their accessibility - timelines does not meet our standards. The time lag between the end of reference period and the date of their availability is definitely too long (over 1 year) to use them as the indirect source of data - it would have negative influence on statistics validity. Luxemburg, 29-30 June 2009

Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data METHODOLOGY Direct data implementation from VAT system – for all units and subsets where there are no methodological divergences. Estimation of data from VAT system – correction of data from VAT system on the base of relations between estimated values from VAT and real income estimated from PIT/CIT from previous years - for all remaining units. Estimation according the above rules – for units with VAT exemption. The indirect estimation on the base of sampling is the alternative to the second method. This estimation would be conducted with use of current information from VAT system, current information concerning big enterprises and historical information from PIT/CIT system – as auxiliary variables. In order to succeed it analyses of information divergence from PIT/CIT and VAT systems and time stability is indispensable. Luxemburg, 29-30 June 2009

% of units for which the administrative data are accessible Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data Comparison of income values between survey and PIT/CIT system Completeness of PIT/CIT system: 92, 8 % of surveyed units Values % of units for which the administrative data are accessible Totally correct 58,1 The difference < 1000 PLN 9,3 The difference > 1000 PLN 32,6 Luxemburg, 29-30 June 2009

% of units for which the administrative data are accessible Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data Comparison of income values between survey and VAT system Completeness of VAT system: 78, 7 % of surveyed units Values % of units for which the administrative data are accessible Totally correct 11,1 The difference < 1000 PLN 41,0 The difference > 1000 PLN 47,9 Luxemburg, 29-30 June 2009

Social Insurance Institution Central Register of Contribution Payers Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data Ministry of Finance Social Insurance Institution Administrative system PIT/CIT (Personal or Corporate Income Tax Database) only for some units Central Register of Contribution Payers Administrative data wages and salaries insured/employed insured/worker Statistical data wages and salaries , contributions to social and health security paid by the insured employees, payment due to order agreement employed paid employed Direct usage Indirect estimation Luxemburg, 29-30 June 2009 23

Method for improving quality of business statistics by wider use of administrative data In case of data on employment and working not due to a lack of administrative data sets derived from the Social Insurance Institution (Central Register of Contribution Payers) for different months of the year, we have not been able to examine the full. Estimates suggest the possibility of obtaining directly such data from the collections held by the Social Insurance Institution. In case of wages and salaries, in order to indirect obtaining the full information compatible with the CSO methodology, it is necessary to mobilize additional collections from the Ministry of Finance (PIT-11) and Social Insurance Institution (ZUS RMUA and Central Register of Contribution Payers) and collision with each other relevant variables. Luxemburg, 29-30 June 2009

Method for improving quality of business statistics by wider use of administrative data 4. Formulation of the the principles for data base of micro-enterprises The core of the base will be the information from our SBR (Statistical Business Register) connecting and matching all records from administrative sources by the use of REGON or NIP or PESEL. The core base will be supplied by the variables from administrative systems which are considered to be in accordance with statistical ones or additionally which would be right and appropriate in order to meet users’ needs. Luxemburg, 29-30 June 2009

Method for improving quality of business statistics by wider use of administrative data The subjective scope will embrace all units: natural persons conducting economic activity, legal persons, legal persons and organizational entities without legal personality, local units, groups of enterprises, natural persons – partners in limited or non-commercial partnerships registered in the following administrative sources: Ministry of Finance – CIT, PIT, VAT, Taxpayer register KEP : certification of registration of taxpayer, supplies us with the name of entrepreneur, address, permanent establishment, nature of activity, branch of industry, wages and salaries, Social Insurance Institution – Central Register of Contribution Payers, ZUS ZUA form: PESEL, NIP, name, number of insured persons (employed and paid employed), and their revenues, Ministry of Justice - National Court Register: only for identification of unit, National Health Fund: Information about NHF services, others, if they are considered to be appropriate. Luxemburg, 29-30 June 2009

objective scope will correspond to the scope of survey: Method for improving quality of business statistics by wider use of administrative data objective scope will correspond to the scope of survey: identification characteristics: address of registered office, address where activity is conducted, correspondence, mailing address, telephone, fax number, date of the activity beginning, suspension, resume or close-down, kind of financial records, kinds of activity, number of local units, number of paid employed, number of employed, wages and salaries, revenues, costs, gross value of fixed assets, taxes. Luxemburg, 29-30 June 2009

Implementation stages: Method for improving quality of business statistics by wider use of administrative data Implementation stages: creation of the core base by means of data derived from SBR connection of units from statistical and administrative sources – by use of REGON, NIP, PESEL adding new units, shaping limited or non-commercial partnerships determining local units enter administrative data to the core base updating the data The subjective updating will be done on the base of SBR and administrative sources. Close down units will be stored in the base for 4 years. The objective scope will be updated once a year as soon as we receive proper sets. Luxemburg, 29-30 June 2009

Method for improving quality of business statistics by wider use of administrative data The scope of SBR Updating Ministry of Finance National Court Register Social Security Service NIP, PESEL, REGON X address legal form legal and economic activity date of the activity close-down,dissolution, invalidity, fusion or transformation, number of paid employed, employed, wages and salaries revenues kind of financial register information about local units and groups of enterprises Luxemburg, 29-30 June 2009

What is still to be done by the end of the project? Method for improving quality of business statistics by wider use of administrative data What is still to be done by the end of the project? Working out the new methods of data estimation in sample surveys on micro-enterprises – based on the sample, in order to obtain data on low levels of geographical aggregation. An experimental estimation of selected economic categories, based on statistical surveys’ data and the administrative data. Testing the new methods. Conducting computations and making simulations of the use of the projected methodology in order to assess effects of its application – all this work is planned to be finished by the end of July. Working out the method of using administrative systems in sample selection, for example by using the administrative data as additional variables in sampling schemes. Preparing elaboration of the micro-enterprises spatial positioning – in additional geographic coordinates to the address data of the statistical business register. Luxemburg, 29-30 June 2009

Thank you for your attention Methods for improving quality of business statistics by wider use of administrative data Method for improving quality of business statistics by wider use of administrative data Thank you for your attention Luxemburg, 29-30 June 2009