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Income inequalities

Income inequalities. Denis Leythienne and Liviana Mattonetti (Eurostat). I. MILESTONES. 2007 : ‘ Beyond GDP ’ Conference (OECD/EC/EP/Club of Rome/WWF).

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Income inequalities

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  1. Income inequalities Denis Leythienne and Liviana Mattonetti (Eurostat) E-frame conference, Paris, 26-28 June 2012

  2. I. MILESTONES • 2007: ‘Beyond GDP’ Conference (OECD/EC/EP/Club of Rome/WWF). • 2008/2009:Stiglitz/Sen/FitoussiCommission on the ‘Measurement of Economic Performance and Social Progress’. Communication of the Commission:‘Beyond GDP’ • 2010:The European Council adopts Agenda 2020 for a ‘smart, sustainable and inclusive growth’ • 2011: Report of the ESS Sponsorship on SSF recommendations • 2012: First implementation of ESS / Sponsorship recommendations in the field of material wellbeing E-frame conference, Paris, 26-28 June 2012

  3. II. EUROPEAN RECOMMENDATIONS • Main indicator of material wellbeing: • Household Gross Disposable Income (GDI) • Adjusted for social transfers in kind (Goods and services in health, education etc… financed by government) • In real terms (in PPS / deflated for comparisons over space / time) • Per capita (ideally per consumption unit) E-frame conference, Paris, 26-28 June 2012

  4. II. EUROPEAN RECOMMENDATIONS • Macro-aggregates • Publish and analyse annual data on adjusted GDI / actual consumption of households, per capita / CU, in Purchasing Power Standards (PPS) • Publish jointly, within the ESS, quarterly data on adjusted GDI of households per capita, in real terms, possibly seasonally adjusted E-frame conference, Paris, 26-28 June 2012

  5. II. EUROPEAN RECOMMENDATIONS • Income distribution • Use the adjusted GDI of households as the reference concept to link National Accounts (NA) data with social statistics • Agree at international level on a methodology to link NA data with social statistics in order to breakdown adjusted GDI by category of households • Estimate, in a second step, the growth rate of adjusted GDI / actual consumption by category of households • Collect, if deemed necessary, additional micro-data to better impute social transfers in kind at the micro level E-frame conference, Paris, 26-28 June 2012

  6. III. IMPLEMENTATION • Macro aggregates – quarterly data: • October 2012: Eurostat re-focuses its quarterly household news release on adjusted GDI per capita in real terms (seasonally adjusted) • 2012/2014: The ESS implements a standard template for the dissemination of quarterly household data E-frame conference, Paris, 26-28 June 2012

  7. III. IMPLEMENTATION • Macro aggregates – annual data: • February 2012: Annual data on Adjusted GDI per capita in PPS released by Eurostat (t_nasa\tec00113 in Eurobase) • June 2012: Publication of a Statistics in Focus on the impact of the crisis on the material wellbeing of households (adjusted GDI and actual consumption) E-frame conference, Paris, 26-28 June 2012

  8. III. IMPLEMENTATION • Income distribution: • Eurostat/OECD Expert Group (EGDNA) set-up to study the methodological aspects of income distribution in OECD countries • A minima exercise carried out by Eurostat on the basis of harmonized data available at European level • End 2012/Early 2013: first results of EGDNA / Eurostat estimates for the breakdown of household income and consumption per household/CU by category of households • 2013: improved imputation of social transfers in kind (Eurostat) E-frame conference, Paris, 26-28 June 2012

  9. Gross Disposable Income: EU-SILC coverage of NA totals(First results of the a minima exercise) E-frame conference, Paris, 26-28 June 2012 11 11

  10. III. IMPLEMENTATION • Next steps of the a minima exercise: • July 2012: Breakdown of income data for a test country • Imputations/adjustments on EU-SILC and NA data (e.g. property income / social transfers in kind) • Sensitivity analysis • Discussion of the results within the EGDNA framework • Autumn 2012: Extension of the breakdown to the remaining countries of EU27 and EFTA • December 2012: Publication of first results on income distribution within EU and EFTA countries E-frame conference, Paris, 26-28 June 2012

  11. Questions / Comments ? E-frame conference, Paris, 26-28 June 2012

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