Regional Workshop for African Countries on Compilation of Basic Economic Statistics Pretoria, July 2007 Administrative Data and their Use in Economic Statistics Vladimir Markhonko United Nations Statistics Division

Vladimir Markhonko 12/7/20072 Contents  Definitions  Advantages of using administrative data  Common problems  Quality of administrative data  Using administrative data in practice  Conclusions

Vladimir Markhonko 12/7/20073 Definition of administrative data narrow definition wider definition

Vladimir Markhonko 12/7/20074 Narrow Definition of Administrative Data Data available in records of governmental agencies administering various governmental programmes Examples: tax records, customs declarations, social security records

Vladimir Markhonko 12/7/20075 Wider Definition of Administrative Data Wider Definition of Administrative Data Data available in records of Governmental agencies + Organizations operating in private sector

Vladimir Markhonko 12/7/20076 Administrative sources of data are sources containing information which is not primarily collected for statistical purposes.

Vladimir Markhonko 12/7/20077 Reasons for a wider definition  Privatisation of some governmental functions  Growth of private sector organizations collecting statistically significant data  User interest in new types of data which might not be collected by NSOs  Cost efficiency

Vladimir Markhonko 12/7/20078 Benefits of Administrative Data  Cost Surveys / censuses are expensive, administrative data are often “free” Surveys / censuses are expensive, administrative data are often “free”  Response burden Reduced burden on data suppliers Reduced burden on data suppliers Statistics can be compiled more frequently with no extra burden Statistics can be compiled more frequently with no extra burden

Vladimir Markhonko 12/7/20079  Coverage Full coverage of target population Full coverage of target population No survey errors and lower non-response No survey errors and lower non-response Better small-area data Better small-area data  Timeliness can be improved for some types of data but not for all can be improved for some types of data but not for all  Public image National statistical office is perceived as more efficient both in terms of cutting costs and provision of better data National statistical office is perceived as more efficient both in terms of cutting costs and provision of better data

Vladimir Markhonko 12/7/ An example: population census costs for some European countries in  UK - €6.2 per person  Austria - €6.9 per person  Finland - €0.2 per person due to extensive use of administrative data due to extensive use of administrative data Source: Eurostat – Documentation of the 2000 round of population and Housing censuses in the EU, EFTA and Candidate Countries; Table 22

Vladimir Markhonko 12/7/ Typical problems  Administrative units do not always coincide with statistical units  Need to perform data conversion  Difficulty in profiling of the more complex cases Gives a better understanding of complex business structures Gives a better understanding of complex business structures Expensive and needs trained staff Expensive and needs trained staff

Vladimir Markhonko 12/7/  Different definitions and classifications Conversion tables needed for different classifications Conversion tables needed for different classifications  Administrative and statistical priorities are often different  Timeliness Data may arrive too late Data may arrive too late Data relate to a different time period Data relate to a different time period

Vladimir Markhonko 12/7/  Change management Risk of changes in government policy, thresholds, definitions, coverage etc. Risk of changes in government policy, thresholds, definitions, coverage etc. Need contingency plans Need contingency plans  Data from multiple sources Matching / linking issues Matching / linking issues Data conflicts – priority rules Data conflicts – priority rules

Vladimir Markhonko 12/7/  Administrative data will be better than survey data in some aspects but not in others  It is important to look at overall quality  Do the data quality meet the needs of users? Quality of Administrative Data

Vladimir Markhonko 12/7/ Three Aspects of Quality  Quality of incoming data  Quality of processing (matching, merging,...)  Quality of outputs - likely to be different to survey based outputs, but are they better?

Vladimir Markhonko 12/7/ Quality Measurement  How to measure the quality of data from administrative sources? Comparing sources Comparing sources Quality check surveys Quality check surveys Knowledge of source (metadata) Knowledge of source (metadata) Quality reports Quality reports

Vladimir Markhonko 12/7/ Using Administrative Data  Conversion to statistical concepts and definitions  Linking / Matching Exact Matching - linking records from two or more sources, often using common identifiers – unique identifier of units Exact Matching - linking records from two or more sources, often using common identifiers – unique identifier of units Probabilistic Matching - determining the probability that records from different sources should match, using a combination of variables Probabilistic Matching - determining the probability that records from different sources should match, using a combination of variables

Vladimir Markhonko 12/7/  Shift in paradigm:  Some statistical offices prefer first to create a database populated with administrative data and use statistical surveys only to fill the gaps  Implies a high degree of trust in quality of administrative data

Vladimir Markhonko 12/7/ Conclusions  Administrative sources should be defined in the widest sense  There are many benefits in using administrative data, particularly the reduced costs of data and better coverage  There are problems when using administrative data, but an acceptable solution usually can be found

Vladimir Markhonko 12/7/  Most problems can be solved by effective planning and detailed knowledge of the source  The benefits are greater than the problems encountered  UNSD plans to prepare a Handbook on Use of Administrative Data and put good country practices on its website.

Vladimir Markhonko 12/7/ Thank you for your attention.