1. ANATOLII ROJCO Population Inequality and Welfare Measuring (based on Households Budgets Survey) ”One cannot achieve sustainable welfare if half of the country will prosper and half would live in misery” Franklin Delano ROOSVELT - USA President (1932-1945)

2. The main goal of the investigation is to estimate inequality using modern scientific methods of inequality measuring and analysis. The object for inequality measuring and inequality if the household. The data source are the data of Household Budget Survey carried out by the National Bureau of Statistics of the Republic of Moldova. The main indicator or population welfare are the consumption expenditure of households.

3. Households’ distribution in correlation with consumption expenditures and disposable income (2005), % Quintiles of consumption expenditures Share of households whose consumption expenditures as related to disposable incomes are: Share of households whose consumption expenditures over pass disposable income: higherlowerequal up to 1,2 times from 1,2 to 1,5 times over 1,5 times I81,917,90,217,916,048,0 II54,445,40,222,415,516,5 III33,466,40,117,18,67,7 IV28,071,90,114,08,45,6 V21,278,8-11,45,74,1 Total40,459,50,116,210,513,7

4. Dynamics of Gini coefficient during 1998-2005

5. Dynamics of quintile and decile coefficients of funds

6. Consumption expenditure distribution by quitiles

7. Lorenz Curves

8. Gini coefficient dynamics in territorial aspect

9. GDP evolution and Gini coefficient as against previous year, %

10. Level of population inequality in different countries a – consumption expenditures b – disposable income c – author’s calculations CountryYear Gini coefficientFund coefficient decilequintile Countries with reduced Gini coefficient(G ≤ 0,3) Dania Sweden Norway Finland Ukraine Germany 1997 b 2000 b 2003 a 2000 b 0,247 0,250 0,258 0,269 0,281 0,283 8,192 6,167 6,000 5,650 5,897 6,906 4,313 4,022 3,875 3,823 4,076 4,341 Countries with average Gini coefficient (0,3 < G ≤ 0,4) Romania France Estonia Italy Moldova c Russia 2003 a 1995 b 2003 a 2000 b 2005 a 2002 a 0,310 0,327 0,358 0,360 0,378 0,399 7,394 8,964 11,040 11,652 11,117 12,750 4,840 5,583 6,388 6,462 6,792 7,639 Countries with high Gini coefficient (G > 0,4) Georgia Turkmenistan El Salvador Brazil Botswana Namibia 2003 a 1998 a 2002 b 2003 b 1993 a 1993 b 0,404 0,408 0,524 0,580 0,630 0,743 15,150 12,192 55,439 57,25 80,857 129,000 8,286 7,787 20,704 23,885 31,955 56,214

11. Sex and age structure of households depending on their welfare level, % Big citiesOther citiesVillages IVIVIV Sex of household head: man43,740,959,752,869,156,3 woman50,359,140,347,230,943,7 Age of household head: up to 25 years old–17,81,05,51,02,2 25-34 years19,122,614,05,311,56,1 35-44 years23,615,725,016,823,416,0 45-54 years24,217,230,128,525,829,8 55-64 years17,413,917,428,515,320,4 65 and over15,712,812,415,423,025,6 Total 100,0

12. Distribution of households with different welfare levels by number and composition, % Number of household members: Big citiesOther citiesVillages IVIVIV 1 member4,335,96,640,912,340,3 2 members17,632,019,932,722,530,3 3 members22,519,427,718,121,215,4 4 members43,69,435,87,622,49,7 5 members7,72,95,40,712,92,8 6 and more members4,20,44,6–8,71,7 Total100,0 Household composition: With one child41,421,133,213,521,613,9 With two children5,25,015,63,120,96,5 With three children7,70,62,50,37,21,2 With four and more children4,2–1,8–3,10,3 Without children41,473,346,883,147,278,2 Total100,0

13. Disposable income in households with different welfare level (in average per one member per month) Big citiesOther citiesVillages IVIVIV Disposable income, lei384,801191,67297,45963,09209,88904,10 including: Employment related income254,80772,42213,32482,7248,70217,04 Income from agriculture0,003,2015,5657,5587,34306,11 Income from non-agriculture production 0,0050,876,6950,05– 0,4237,73 Income from property0,005,890,00 1,36 Social payments85,7690,3350,21121,4461,70115,81 Other current transfers44,24268,4411,67251,5112,51225,84 Out of which: Money from abroad17,9875,992,85155,374,17180,44

14. Distribution of households and volume of money from abroad, % Big cities Other cities Villages Households receiving money from abroad Quintiles: I1,63,36,7 II1,36,912,9 III11,620,118,6 IV16,026,321,1 V69,543,440,8 Total100,0 Volume of money received from abroad Quintiles: I1,41,73,4 I1,13,68,1 III7,613,012,9 IV7,225,818,9 V82,755,956,7 Total100,0

15. Consumption expenditures in households with different welfare levels (in average per one member per month) Big citiesOther citiesVillages IVIVIV Total consumption ditures, lei 176,881200,56177,801005,51163,431058,54 Including in %: – food and non-alcoholic drinks61,4037,3070,9347,0778,4942,55 – alcoholic drinks and tobacco3,461,901,651,194,582,50 – clothes and shoes2,5812,931,5210,821,938,20 – dwelling maintenance15,3113,5715,1516,197,3323,95 – dwelling equipping0,843,631,962,081,783,98 – health3,603,702,245,281,195,87 – transport3,437,420,282,940,763,80 – communication services2,293,983,014,412,023,51 – culture and entertainment1,914,220,861,900,433,23 – education0,592,170,164,080,090,39 – hotel, cafeteria, restaurant0,693,780,000,400,010,14 – other goods and services3,915,302,253,641,381,87

16. Housing depending on household’s welfare level and residence of its members Big citiesOther citiesVillages IVIVIV By one household member, m 2 total area13,122,920,438,223,345,6 habitable area8,214,214,026,016,732,8 Distribution of household members by assurance with habitable area, % up to 9,0 m 2 65,231,833,06,523,23,0 9,01 – 20,0 m 2 30,550,148,739,149,224,3 more than 20,0 m 2 4,318,118,354,427,672,7 Total100,0

17. Presence of utility commodities in the dwelling depending on household welfare level ( in % of total of households ) Big citiesOther cities Villages IVIVI V Electricity 100,0 96,8100,096,8 100,0 Water water pipe line 100,0 48,160,41,3 12,7 from water pump ––13,315,90,4 1,4 from well ––36,123,696,6 82,8 other ––2,5–1,7 3,1 Sewerage 100,0 48,160,41,3 12,7 Hot water (centralized supply) 82,673,638,632,4– – Gas network (centralized supply) 65,269,474,778,66,322,8 bottled 17,42,422,821,483,876,0 Heating: centralized 100,098,613,316,5–– autonomous ––30,444,01,413,6 stove – centralized on gas –1,417,718,71,37,2 stove with wood and coal ––38,020,997,379,1 Bath or shower 95,799,039,254,40,12,7 Telephone 78,385,666,589,033,268,4

18. Households’ equipping with durables (pieces by 100 households) Durables Big citiesOther citiesVillages IVIVIV Radio14141071313191925 TV set: - colour84 9467893471 - white-black432194024 Tape recorder303713262023 Video receiver1417210313 Musical set3151617 Camera3236412411 PC515─3─3 Fridge918482934177 Washing machine465846642856 Sewing machine28291627926 Vacuum cleaner51663052726 Microwave5613─3 Bicycle for adults55181117 Motor bicycle──1247 Car1115423420

19. Durables’ operation period in households Durables Operation term, % Total Up to 5 y6-10 y11-15 y16-20 y20 and over Color TV set Big cities I26,945,317,510,3–100,0 V43,128,919,56,32,3100,0 Other cities I36,025,022,07,010,0100,0 V38,927,014,514,45,3100,0 Villages I53,922,016,76,11,3100,0 V49,527,414,86,32,0100,0 Fridge Big cities I16,114,23,817,248,7100,0 V21,815,915,115,431,9100,0 Other cities I5,510,018,922,742,8100,0 V15,014,115,619,835,5100,0 Villages I6,77,314,615,556,0100,0 V14,910,215,216,543,2100,0 Washing machine Big cities I37,67,511,432,111,4100,0 V41,620,810,99,816,9100,0 Other cities I11,215,422,218,932,3100,0 V24,716,017,015,926,5100,0 Villages I14,215,917,514,238,2100,0 V23,913,219,313,730,0100,0 Car Big cities I––48,7–51,3100,0 V5,217,548,817,011,5100,0 Other cities I––22,813,763,5100,0 V–23,828,128,319,9100,0 Villages I–12,112,723,951,3100,0 V3,316,935,122,022,7100,0

20. Land usage by households, % Big cities Other citiesVillages IVIVIV Land: – have – 11,359,966,8100,0 – don’t have100,088,740,133,2–– Total100,0 Type of land: – near house plot–1,051,452,299,599,8 – auxiliary household–1,45,213,284,886,1 – villa land–91,720,425,3––

21. Health status of household members depending on welfare level, % Big citiesOther citiesVillages IVIVIV Chronic disease: – don’t have68,057,377,156,072,554,7 – hypertonic disease4,69,15,510,13,68,3 – hear diseases5,03,91,44,51,94,3 – chronic bronchitis1,22,81,91,61,11,7 – Bronchitis asthma–0,80,40,30,5 – digestive system diseases6,310,14,99,94,79,7 – kidney diseases2,53,61,13,02,33,4 – diabetes–1,10,52,30,51,0 – tuberculosis–0,1–0,40,30,1 – other diseases12,411,27,211,812,616,3 Total100,0 Beneficiaries of medical insurance: – are77,087,273,584,166,275,3 – are not23,012,826,515,933,824,7 Total100,0

22. Household expenditures for health Big citiesOther citiesVillages IVIVIV Lei per month Total expenditures:6,5645,324,2653,172,0064,51 including: –doctor consultation, laboratory tests, diagnosis, physic - therapeutic treatment 0,006,670,407,740,134,66 – payment for hospital treatment2,381,730,101,030,045,52 – dentist services0,007,250,004,550,1011,29 – drugs procurement4,1829,673,7639,851,7343,04 In percentage Total expenditures :100,0 including: –doctor consultation, laboratory tests, diagnosis, physic - therapeutic treatment 0,014,79,414,66,57,2 – payment for hospital treatment36,33,82,31,92,08,6 – dentist services0,016,00,08,65,017,5 – drugs procurement63,765,588,374,986,566,7

23. Education level of household members (of 15 years and over), % Education Big citiesOther citiesVillages IVIVIV University12,137,23,827,01,312,8 Secondary vocational (college)10,316,911,527,6,4,813,9 Secondary general (lyceum)44,836,952,928,332,734,6 Incomplete gymnasium25,98,124,214,645,127,6 Primary5,20,64,11,910,77,4 With no education1,70,33,50,65,43,7 Total100,0

24. Households with children studying on contract basis, % Big citiesOther citiesVillages IVIVIV Share of households with children studying on contract basis out of the total number of households 13,816,43,613,92,59,0 Distribution of households with children studying on contract basis (all households - 100,0%) 1,859,97,831,110,828,8

25. Distribution of households with different welfare levels by number of visits to service providers for population, % Quintile Total IIIIIIIVV District health center Big cities2,33,311,523,459,5100,0 Other cities9,616,218,322,833,1100,0 villages5,716,015,521,940,9100,0 Post Office Big cities3,26,015,332,742,8100,0 Other cities12,823,5 21,818,4100,0 villages17,921,522,423,015,2100,0 Local administration body Big cities0,0 71,328,7100,0 Other cities20,310,228,323,018,2100,0 villages11,323,422,628,014,7100,0 Library or club Big cities2,96,415,721,653,4100,0 Other cities11,516,25,421,745,2100,0 Villages10,221,311,316,640,6100,0 Concert hall, theatre, cinema Big cities0,0 6,06,887,2100,0 Other cities0,0 15,0 70,0100,0 Villages0,0 100,0

26. Self-assessment of household’s living standards, % Big citiesOther citiesVillages IVIVIV Very good–0,3–––– Good4,39,40,67,10,98,0 Satisfactory56,569,757,068,773,079,3 Bad26,118,834,223,122,010,9 Very bad13,11,88,21,14,11,8 Total 100,0

27. Level of difficulty when paying for utility services depending on household’s welfare level, % Big citiesOther citiesVillages IVIVIV Centralized heating: – never 4,335,8–16,7–– – sometimes 43,533,4100,083,3–– – frequently 52,230,8–––– Natural gas centralized supply : – never 66,774,614,738,255,18,5 – sometimes 13,321,669,832,840,865,8 – frequently 20,03,815,529,04,125,6 Electricity: – never 52,273,040,553,845,531,6 – sometimes 34,822,847,727,551,267,0 – frequently 13,04,211,818,73,31,4 Access to centralized hot water supply: – yes 39,141,2–––– – no 60,958,8100,0 – frequently 13,04,211,818,73,31,4

28. Size of monthly disposable incomes sufficient for settling household's problems (per one household member, lei) Big citiesOther citiesVillages IVIVIV Disposable income384,801191,67297,45963,09209,88904,10 Sufficient amount to ensure: - minimal needs359,47563,40306,90495,72321,29423,95 - normal needs1235,401863,90876,421375,43875,381345,54 Difference between the disposable income and the amount sufficient for ensuring : – minimal needs25,33628,279,45467,37-111,91480,15 – normal needs-850,60-672,23-578,97-412,34-665,50-441,44