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Addressing Income Inequalities: Key Insights and Recommendations from the E-frame Conference 2012

This document summarizes the key milestones and European recommendations discussed at the E-frame Conference held in Paris from June 26-28, 2012. It highlights the importance of measuring Gross Disposable Income (GDI) adjusted for social transfers in kind and provides insights into the implementation of recommendations aimed at improving the measurement of income distribution and material well-being. Key steps and future directions are outlined to enhance data collection and analysis related to household income and consumption in the EU.

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Addressing Income Inequalities: Key Insights and Recommendations from the E-frame Conference 2012

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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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