1 Progress report on Expert Groups on micro and macro household statistics WPNA meeting October 2011 Maryse FESSEAU (OECD – Statistic Directorate, National Accounts Division)

2 Outline of presentation 1. Update on the Expert Groups 2. First results related to National Accounts 3. Emphasize the household perspective through National Accounts data at the international level

3 1. Update on the Expert Groups on Households economic resources

4 Reminder Two Expert Groups on Households economic resources OECD Expert Group on Micro Statistics on Income, Consumption and Wealth (EG ICW – 17 NSOs), aiming at: –Pursuing methodological work to develop standards and guidelines for measuring household wealth through surveys –Proposing a framework for joint analysis of micro data on households income, consumption and wealth OECD-Eurostat Expert Group on Disparities in a National Accounts Framework (EG DNA – 25 NSOs), aiming at: –Using existing micro sources to produce indicators of disparities by group of households consistent with SNA totals – feasibility study (country pilot studies)

5 First meeting and inputs EG ICW + EG DNA : first meeting in Paris, March 2011 EG ICW + EG DNA : new inputs required and initiated EG ICW: Survey of country practices on wealth (micro) statistics Sent to 34 countries (all NSOs represented in CSTAT (members and observers), and non-OECD EU countries ); 31 answers. EGDNA : Survey of country practices on Households National Accounts compilation (from production to saving, incl. StiK) Sent to 42 countries (OECD/EU27/EFTA/EG DNA). 39 answers. EGDNA: Questionnaire comparing micro and macro data sources (for income, consumption and wealth) Sent to 25 EG DNA countries. 19 answers.

6 Next steps and meetings EG ICW / EG DNA 2 nd meeting (Paris, Dec 2011) 3 rd meeting (mid-2012) End-work: end 2012 Early 2013: draft final report to CSTAT for comments under written procedure

7 2. First results related to National Accounts

8 EG DNA survey on HH current accounts Sent to 42 countries (OECD/EU27/EFTA/EG DNA) 39 responses (32 OECD, 24 EU27, India) Focus: –On annual data –On current accounts: from production to saving, including social transfers in kind Main information collected for the HH sector: –Delineation –Method and source used by transaction –Adjustments made –Indicators released at the country level –Improvements planned in the medium/short term Preliminary results: some answers still to be checked

9 EG DNA survey: sector delineation Non-Profit Institutions Serving Households (NPISHs) –Nearly 1/3 publish HH accounts mixed with NPISHs Remark: 1 out of 4 in EU27 countries –In most countries the absence of separate accounts reflects a lack of data source

10 EG DNA survey: sector delineation Unincorporated enterprises (UE) –Wide range of situations across the 38 countries 3 countries do not include UE at all 13 countries include all the UE Other countries include a part of them, using different criteria and different tresholds –Difference in the share of UE income in HH income (proxi. mixed income as a % of disposable income) ….could be due to delineation gaps

11 EG DNA survey: method and sources Information by income/consumption transaction Method: 4 response items –Direct estimation independent of other sector accounts, –Estimation using counterpart information from other sectors, –Estimation as a residual from the total economy –Not included Sources: 6 response items, multiple choices allowed –Household survey, –Administrative records, –Mixed survey and administrative records, –Business sample survey, –Economic census, –Trade sources.

12 EG DNA survey: method and sources Method by income transaction Source: EG DNA survey 2011

13 EG DNA survey: method and sources Sources by income transaction Source: EG DNA survey 2011

14 EG DNA survey: method and sources Method by consumption transaction Source: EG DNA survey 2011

15 EG DNA survey: method and sources Sources by consumption transaction Source: EG DNA survey 2011

16 EG DNA survey: adjustments Different type of adjustments: conceptual, exhaustiveness, balancing Not all countries implement the same adjustments… ….whereas some adjustments can have a strong impact on the final amount (more than 80%)

17 EG DNA survey: social transfers in kind Only 2 countries do not estimate a separate item for STiK Among the 36 countries that estimate STiK: –3 countries do not include Education –5 countries do not include all the Health components

18 EG DNA survey: aggregates published

19 EG DNA survey: conclusions The HH sector is estimated by using mainly direct and counterpart information Micro and macro data sources are not completely disconnected even if the HH accounts is affected by adjustments Sharing knowledge on country practices is crucial to knowing whether gaps are significant => Especially where HH aggregates are used to benchmark country performances Countries could already improve the emphasis on HH aggregates by publishing more aggregates More than half of the countries are planning to work on the HH sector in the medium/short term

20 3. Emphasize the household perspective through National Accounts data at the international level

21 The annual aggregates currently emphasized at the OECD National Accounts at a Glance (NaaG) 2010 OECD Factbook How is Life ?

22 Annual aggregates currently emphasized at the OECD

23 Other annual aggregates could be emphasized Financial indicators: OECD financial Dashboard Combination of financial and non-financial indicators Household net worth Non-financial indicators, such as: Adjusted disposable income (as % of primary income) Housing costs (as % of HH disposable income)

24 Other annual aggregates could be emphasized Adjusted disposable income (% of primary income) = Do HHs benefit from the redistribution process? Scope: countries with detailed information on the HH (S14) sector in the OECD database for 2000 and 2008

25 Other annual aggregates could be emphasized Housing costs (% of disposable income) Scope: countries with detailed information on the HH (S14) sector in the OECD database for 2000 and 2008

26 Other annual aggregates could be emphasized CONCLUSIONS: Financial indicators: Information available, work on-going Combination of financial and non-financial indicators Work to be done, country coverage issue Non-financial indicators: Information available, relevance of indicators should be investigated

27 To go forward… COMPILATION –Encouraging the compilation of HH accounts close to SNA for better homogeneity –Encouraging the compilation of HH balance sheets DATA COLLECTION –Develop collection/exchanges on metadata DISSEMINATION –Paper on the EG DNA survey to share the information –Introduction of new HH indicators in the current OECD publications –OECD financial Dashboard –Press release on HH Not forgetting: HH quarterly sector accounts !

28 Thank you for your attention.