A first estimate of LCD by gender (Uruguay)

1. A first estimate of LCD by gender (Uruguay) Marisa Bucheli Cecilia González dECON, FCS, Udelar

2. In Uruguay we are doing NTA by SES • We have estimations of labor income, consumption, LCD and public transfers • We have preliminary estimations of RA and private transfers • We recently began to think of doing estimations by gender • Wehavenotworkedonunpaidactivities

3. NTA by SES groups • To my best knowledge, in the Latin American team we used (at least at the beginning) different procedures for estimation • In our case, we have estimations basead on two differente procedures (the one we used at the beginning and the proposed late by CELADE) • But we have not compared the sensitivity of the results to the procedures

4. First procedure • We estimate the profiles (mean and smooth mean) as usual but for each SES group separately • Note that all members of the hh belong to the same group so the only challenge is define groups with a “good” size in all ages • We estimate the aggregated value (AV) of each group (g) and age (a), where P is the population and XS is the smooth microdata value: • The Total AV is the sum of the Total AV of groups

5. First procedure • In ordertocalculatethe formula, weneedtoknowthepopulation of eachage-group • Weestimateitusingitsproportion in thesurvey • Note: in thedefinition of theclassification, wetookintoaccount (¿?) thesize of theage-grouppopulation in thesurvey

6. Second procedure • We estimate the total AV of each group using the weight of the group in the microdata • We estimate the total AV of the age-group using the weight of the age-group in the microdata (X is the mean value in the microdata): • We estimate the mean value as AV of the age-group / Population in the age-group • In the analysis of the data we work with five-year-age group

7. Up tonow… • Wehave a complete NTA estimation (though a preliminaryversionparticularly of privatetransfers and RA) followingthefirstprocedure (usingthe “educationallevel of thehhadults” as the proxy of SES) • Manychallenges: 1) ¿inter-hhtransfers?; 2) public RA; …. • We have estimations of labor income, consumption and public transfers following the second procedure (using the “educational level of the hh head 2” as the proxy of SES)

8. NTA by gender • Our first idea was to follow the first procedure to estimate NTA by gender • Two differences: • In the gender classification we know the population of each age-group. We used it • In the SES classification, all the members of a hh belong to the same group. In the classification by sex, it is possible that members of the same hh belong to a different group • This issue is not important in the estimation of accounts for which we have individual information in the surveys: labor income, some components of private consumption, public inflows and some public outflows

12. Butiftheinformationisgiven at household-level … • Privateeducation: wefollowexactlythesameprocedurethan in NTA: • In thesurvey, weidentifythestudents (and theirlevel of education) thatattendprivateschool. Weassigntoeachonetheamount of thetuitionspaidbythehh. • In the case otherspending (books, courses of language, computation, etc.) we use themethodproposedby NTA • Weclassifythepersonsbyage and sex in ordertocalculate mean and smooth mean values

13. Thedifferenceisduetospendingnotrelatedtoattendance (apparently, to “enseñanza no curricular” -language, computation, specialteachers, etc.-) ¿Isitthemethod? ¿Shouldwetakeintoaccountthe sex-composition of thehhwhenwehavetoassignspendinginformed at hhlevel?

14. Butiftheinformationisgiven at household-level … • Thisisthe case of most of theprivateconsumption and indirecttaxes

15. Butiftheinformationisgiven at household-level … • Privatehealth: wefollowexactlythesameprocedurethan in NTA: • In thesurvey, weidentifythepersonswhowereill. Weassigntoeachonetheamount of thespendingrelatedtobeill. • In the case otherspendingwe use themethodproposedby NTA • Weclassifythepersonsbyage and sex in ordertocalculate mean and smooth mean values

16. We do notknowwhichcomponentsexplaintheincreasing gap Weshould explore ifitisdueto a componentassignedtoan individual throughanindirectmethod (notanill-relatedcomponent)

17. Butiftheinformationisgiven at household-level … • Rest of privateconsumption: wefollowexactlythesameprocedurethan in NTA: • Weusedanequivalencescaletocalculatetherest of privateconsumption per hhmember • Weassignedtoeach individual of thehhthesameamount • Weclassifythepersonsbyage and sex in ordertocalculate mean and smooth mean values

21. Somequestions • Wewouldliketoknow more aboutthegenderdifferencein theprivatehealthand privateeducation. • Are theysensitivetothemethod of allocation of spendinginformed at householdlevel? • Ifthereis a genderdifference in private / healtheducation, shouldwe use thetraditionalmethod of imputation of therest of privateconsumption? • Anotherchallenge: privatetransfers

22. Unpaidwork • Wehavenotworkedin thisissue in thelastyear • In thepast, weperformedsomeestimations of thevalue of unpaidactivities in whichweimputed a wagetounpaidwork: • Results quite sensitiveto use theopportunitycostcriteriaorreplacementcriteria • Alsosensitivetoconsiderspecialist / non-specialistwage in thereplacementcriteria • Thereis a new survey (2009) butwehadnotworkedwithityet