Inequalities between households in the national accounts breakdown of household accounts
This presentation is the property of its rightful owner.
Sponsored Links
1 / 25

Inequalities between households in the national accounts: Breakdown of household accounts PowerPoint PPT Presentation


  • 87 Views
  • Uploaded on
  • Presentation posted in: General

Inequalities between households in the national accounts: Breakdown of household accounts. Maryse FESSEAU, Sylvie LE LAIDIER France – Insee National Accounts Department. Reconciling macro-economic figures and public’s perception.

Download Presentation

Inequalities between households in the national accounts: Breakdown of household accounts

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Inequalities between households in the national accounts breakdown of household accounts

Inequalities between households in the national accounts: Breakdown of household accounts

Maryse FESSEAU, Sylvie LE LAIDIER

France – Insee

National Accounts Department


Reconciling macro economic figures and public s perception

Reconciling macro-economic figures and public’s perception

  • Moati P., Rochefort R. « measuring purchasing power », Conseil d’Analyse Economique – Report to PM - 2008

  • Quinet A. «  measuring households’ purchasing power  », Report to Minister of Finance - 2008

  • « Stiglitz » commission on the « measurement  of economic performance and social progress »

  • recommandation : breaking down macro-economic figures to take into account disparities between households

  • Beginning of the project : mid-2007

    First published results : mid-2009


Two different worlds micro and macro data

Two different worlds : micro and macro data

  • Income and consumption : two types of information available

  • Building a bridge between these two approaches to break down households’ account by household categories

  • Households’ account

  • (MACRO SOURCE)

  • « mirror » construction

  • exhaustiveness

  • harmonised framework

  • Households’ surveys

  • (MICRO SOURCE)

  • direct information

  • specific surveys

  • individual information


Presentation in three parts

Presentation in three parts :

1. Breakdown of household accounts using surveys : scope, classification and methodology

2. Results published : disposable income, consumption expenditure and savings rate by household categories

3. A new step to measure how social transfers in kind reduce inequalities : adjusted disposable income and actual consumption by household categories


Inequalities between households in the national accounts breakdown of household accounts

Part 1:

Breakdown of householdaccountsusingsurveys : scope, classification and methodology


Breakdown of ordinary household accounts for the year 2003 using five surveys 1 3

Breakdown of ordinary household accounts for the year 2003 using five surveys (1/3)

  • The framework of analyses : national accounts, 2003

  • A breakdown using five surveys, for ordinary households - mainland

  • 4 classification variables : standard of living, household composition, employment status or age of the head of the household

Source: National accounts 2003 – Base 2000, Insee


Breakdown of ordinary household accounts for the year 2003 using five surveys 2 3

Breakdown of ordinary household accounts for the year 2003 using five surveys (2/3)

  • Comparison of estimates coming from different data sources

  • Some imputations on micro data (imputed rents, financial revenues, public education expenditure,…)

Source: Insee, National accounts 2003, SILC 2004, Taxincome 2003 and calculations by the authors.


Breakdown of ordinary household accounts for the year 2003 using five surveys 3 3

Breakdown of ordinary household accounts for the year 2003 using five surveys (3/3)

  • Breakdown for each component of incomes and consumption, using distribution coming from micro data and benchmarking aggregates on national account figures

    -> Wages and salaries by age of the head of the household:

Source: Insee, National accounts 2003, SILC 2004, Employmentsurvey 2003, housing satellite account 2003 and calculations by the authors.


Inequalities between households in the national accounts breakdown of household accounts

Part 2:

Resultspublished : disposableincome, consumptionexpenditure and savings rate by householdcategories


Results according to standard of living

Results according to standard of living

  • Standard of living defined as income level per consumption unit (CU)

  • Households distributed in five equal groups on an increasing scale

    Disposable income of the most well-off households is five times higher than that of the least well-off

Scope : ordinaryhouseholdsresident in mainland France, excl. Fisim.

Source : Insee, national account 2003, SILC2004, TaxIncome 2003, Household Budget 2006, housing and healthsurveys, calculations by the authors.


The 20 richest households receive 40 of the total amount of disposable income

The 20% richest households receive 40 % of the total amount of disposable income

Index 100 for disposable income

Scope : ordinary households resident in mainland France, excl. Fisim.

Source : Insee, national account 2003, SILC2004, Tax Income 2003, Household Budget 2006, housing and health surveys, calculations by the authors.

78.7 B€

130.3 B€

159.2 B€

218.0 B€

397.3 B€

993.4 B€


Ratio q5 q1 lower on average consumption expenditure than on disposable income

Ratio Q5/Q1 lower on average consumption expenditure than on disposable income

Share of each item of expenditure by standard of living quintile in 2003

Scope : ordinaryhouseholdsresident in mainland France, excl. Fisim.

Source : Insee, national account 2003, SILC2004, TaxIncome 2003, Household Budget 2006, housing and healthsurveys, calculations by the authors.

Q5/Q1 = 3.3


The savings rate increases with income level negative on average for the poorest

The savings rate increases with income level, negative on average for the poorest

Savings, in % of disposable income

Average savings

rate : 17.3 %

Scope : ordinaryhouseholdsresident in mainland France, excl. Fisim.

Source : Insee, national account 2003, SILC2004, TaxIncome 2003, Household Budget 2006, housing and healthsurveys, calculations by the authors.


The youngest and single parent families benefit from private transfers between households

The youngest and single-parent families benefit from private transfers between households

Savings rate :

Beforeprivatetransfers

Afterprivatetransfers

Scope : ordinaryhouseholdsresident in mainland France, excl. Fisim.

Source : Insee, national account 2003, SILC2004, TaxIncome 2003, Household Budget 2006, housing and healthsurveys, calculations by the authors.


Inequalities between households in the national accounts breakdown of household accounts

Part 3:

A new step to measure how social transfers in kind reduce inequalities : adjusted disposable income and actual consumption by household categories


Definitions

Definitions:

  • Social transfers in kind consist of goods and services provided to individual households by government units and NPISHs freely or at prices which are not economically significant;

  • Added to consumption expenditure , they form actual consumptionof households which represents the whole amount of goods and services consumed by households, whoever is involved in financing it;

  • The adjusted disposable income is derived from the disposable income by adding the value of social transfers in kind.


Usefulness of actual consumption and adjusted income

Usefulness of actual consumption and adjusted income :

  • Prevent main accounting aggregates from depending on the institutional arrangements in a country;

  • Permit comparability, over time and between countries.


Main components of social transfers in kind

Main components of social transfers in kind

  • Health care reimboursements and education represent the three quarters of transfers in kind;

  • 9 100€ per household

  • 5 800€ per consumption unit (CU)

Source :national accounts – Base 2000


Social transfers in kind reduce inequalities

Social transfers in kind reduce inequalities

  • From 5.0 to 3.2 regardingadjusteddisposableincome

  • From 3.3 to 2.2 regardingactual final consumption

.

Adjusted disposable income and actual consumption by standard of living quintile in 2003

Scope: ordinary households resident in mainland France, excl. Fisim.

Source : Insee, national account 2003, SILC2004, Tax Income 2003, Household Budget 2006, housing and health surveys, calculations by the authors.


Transfers show a picture of redistribution the least well off are the main beneficiaries

Transfers show a picture of redistribution : the least well-off are the main beneficiaries

Transfers in % of primary income

Scope: ordinary households resident in mainland France, excl. Fisim.

Source : Insee, national account 2003, SILC2004, Tax Income 2003, Household Budget 2006, housing and health surveys, calculations by the authors.

Balance of transfers in cash = (social benefits and other current transfers) – (current taxes on income and wealth and social contributions)


Inequalities between households in the national accounts breakdown of household accounts

The health care expenses are the highest part of social transfers in kind but the education expenses are a bit more discriminating:

Scope: ordinary households resident in mainland France, excl. Fisim.

Source : Insee, national account 2003, SILC2004, Tax Income 2003, Household Budget 2006, housing and health surveys, calculations by the authors.

* DI+ education; DI + education + health; DI+education+health+housing allowance…


Inequalities between households in the national accounts breakdown of household accounts

After transfers in kind, health care is the second item of actual consumption, lightly smaller than housing for the poorest

Scope: ordinary households resident in mainland France, excl. Fisim.

Source : Insee, national account 2003, SILC2004, Tax Income 2003, Household Budget 2006, housing and health surveys, calculations by the authors.


Social transfers in kind have a key role for the oldest and for large families

Social transfers in kind have a key role for the oldest and for large families

  • Health care :

  • 78 % for the oldest (70 or more)

  • 69 % for families where the head of the household is between 60 and 69

  • Education:

  • 61 % for the largest families

  • 52 % for famillies with two children

  • 48 % for single parent families

Scope: ordinary households resident in mainland France, excl. Fisim.

Source : Insee, national account 2003, SILC2004, Tax Income 2003, Household Budget 2006, housing and health surveys, calculations by the authors.


Conclusions

Conclusions

  • Micro data bridged with national account data on household income and consumption expenditure

  • Financial income and savings highly concentrated on the top of the distribution

  • Some categories of households with low level of income have, on average, negative savings

  • But they are the main beneficiaries of social transfers in kind

  • For the poorest, health care is the second item in actual consumption

  • Next step : a measure of the evolution in purchasing power of each of these categories


Inequalities between households in the national accounts breakdown of household accounts

Thank for your attention.

Results and publications can be found at :

In french: http://www.insee.fr/fr/themes/comptes-nationaux/souschapitre.asp?id=72

In english: http://www.insee.fr/en/themes/theme.asp?theme=16


  • Login