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THE IMPACT OF SOCIAL TRANSFERS IN KIND ON HOUSEHOLDS INCOME DISTRIBUTION

2. IntroductionIncome, consumption and STK in the SNAAllocation of STKMethods being usedMain findingsConclusions and observations Work to be done. 3. Introduction. Updating previous work on the effects of social transfers in kind (STK) on the households' income distributionPrevious workMarc

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THE IMPACT OF SOCIAL TRANSFERS IN KIND ON HOUSEHOLDS INCOME DISTRIBUTION

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    2. 2 Introduction Income, consumption and STK in the SNA Allocation of STK Methods being used Main findings Conclusions and observations Work to be done

    3. 3 Introduction Updating previous work on the effects of social transfers in kind (STK) on the households’ income distribution Previous work March 1997 (1992 Data) April 2000 ( 1992 Data) Current work November 2010 (2007 Data)

    4. 4 “Social transfers in kind consist of goods and services provided to households by government and NPISHs either free or at prices that are not economically significant.” SNA 2008 pa. 8.141

    5. 5 Income, consumption and STK in the SNA Households’ adjusted disposable income

    6. 6 Actual Final Consumption Income, consumption and STK in the SNA

    7. 7 Allocation of STK STK allocation to groups of households enable us to analyze the role of the general government in the redistribution of income processes in a much wider framework In our work, STK has been allocated to the different deciles, which were defined in the household surveys (households were assigned to each decile according to net income per standard person).

    8. 8 Allocation of STK As a result several stages of income distribution were examined (adjusted to the surveys’ definitions) Households' income in the form of compensation of employees, property income and pensions. Households' income after adding receivable current transfers (excluding pensions). Households' income after deduction of current transfers payable. Households' after adding STK from general government and NPISH

    9. 9 Methods STK are generated only by general government and NPISH In the work done till now only health and education, which constitute 75% of total STK, were allocated to the different deciles

    10. 10 Methods - Education Two main sources – Education satellite account, household survey The total (non distinguished) method has been used A breakdown of production costs by level and type of education among the different deciles. Number of students, by decile and type of education services. Households’ payments for education services, by level and type of education Average costs from satellite accounts were assigned to pupils classified by level, type of education and decile

    11. 11 Methods - Health Risk-related insurance policy approach Households’ purchases to market and non market producers were separated STK = Imputed household premium - household payments

    12. 12 Methods - Health (data required) National accounts Production costs of health services by general government and NPISH, by type of expenditure. Sales to households. Households’ survey Disposable income of households, classified into deciles Payments made by households for health services detailed by item Size of households and age composition of the population in each household decile Ministry of health Capitation coefficients

    13. 13 Capitation Model

    14. 14 Main Findings

    15. 15 STK - Services Distribution - 2007 (Percentages, Total=100)

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    19. 19 Conclusions and observations The allocation of STK allows a deeper analysis of income distribution processes STK becomes a major component of adjusted disposable income and actual consumption the lower the decile Different character of the effects of monetary transfers as compared to STK Allocation of STK on education and health is important because it is expected to affect the future distribution of primary income among the different deciles.

    20. 20 Work to be done Welfare Culture & religion Housing and community services

    21. 21 Thank you for your attention!

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