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Expert Group Micro statistics on household income, consumption and wealth First meeting, Paris 23 – 25 March 2011 Presentation outline • Background: i) economic wellbeing and policy context; ii) Recommendations concerning supporting statistics; iii) CSTAT work program 2011 and 2012 • Workplan: i) focus of Micro Expert Group; ii) plan for the meeting 2 Background: concepts • Economic well-being: command over resources. • Central components of economic wellbeing are household income, consumption and wealth. 3 Background: policy context • Well designed social and economic policies need to rely on distributional measures of: - income - patterns of consumption - consumer debt and net worth - redistribution (tax and transfer systems) • Being able to relate and analyse jointly these household level measures provides additional insight into people’s behaviours and policy outcomes 4 Background: final goals Better designed policies and programs hold the promise of delivering: Improved economic wellbeing to individuals Higher economy wide performance Better individual and societal outcomes across a range of dimensions of social concern Ensuring economic sustainability. 5 Background: statistical requirements Gathering of coherent information on the economic situation of households – has significant data requirements that go beyond measurement currently undertaken in most countries, e.g. it requires data on the distribution of household wealth, as well as linked information on income, consumption and wealth – requires internationally recognised statistical frameworks and standards to support practitioners and data users in the field. 6 Background: previous recommendations (1) • Canberra Group Handbook (2001) – recommended further research on the relationships between income, consumption and wealth • 17th International Conference of Labour Statistics (2004) – recommended further guidance on income & expenditure statistics • CES Bureau review of income, living conditions and poverty statistics (2008) – recommended work towards an integrated framework for household income, expenditures and wealth 7 Background: previous recommendations (2) • Stiglitz-Sen-Fitoussi report (2009) - National accounts figures are critical but also limited for analyses of economic well-being. - A greater focus on the household perspective and the distribution of income, consumption and wealth is recommended. - Also noted: “Ideally, such information should not come in isolation but be linked, i.e. one would like information about how well-off households are with regard to different dimensions of living standards: income, consumption and wealth. After all, a low income household with above average wealth is not necessarily worse off than a median income household with no wealth”. 8 Background: previous recommendations (3) • G20 Finance Ministers and Central Bank Governors – Recommendation 16 of report on The Financial Crisis and Information Gaps (2009) noted: “… statistics experts (should) seek to compile distributional information (such as ranges and quartile information) alongside aggregate figures, wherever this is relevant. The Interagency Group on Economic and Financial Statistics is encouraged to promote production and dissemination of these data in a frequent and timely manner. The OECD is encouraged to continue its efforts to link national accounts data with distributional information”. 9 Background: CSTAT 2011-2012 work programme Establishment of two Expert Groups … • First, to measure disparities in a national accounts framework - Aim is to develop prototype accounts for the household sector, consistent with SNA totals, showing the distribution of household economic resources between households of different characteristics. • Second, on micro statistics on household income, consumption and wealth - Aim is complement and expand the extensive work already undertaken in with respect to income measurement and analysis., to consumption and wealth, with a focus on supporting the integrated collection and analysis of the data. 10 Work-plan: focus of Expert Group on ICW Contribute to the OECDs conceptual and statistical work in the field of household economic resources, living conditions and sustainability, by ... – Defining standards and guidelines for micro statistics on the distribution of household wealth, including through a review of country practices. – Developing a framework for integrating micro data on income, consumption and wealth (addressing conceptual issues and practical challenges for combining and analysing information on each of these dimensions). 11 Work-plan: existing inputs Extensive international work has already been undertaken with respect to the measurement of household income, including … – International standards, adopted by the 17th International Conference of Labour Statisticians in 2003. – The Canberra Group Handbook on Household Income Statistics, providing practical guidance for their collection, analysis and dissemination. • Drafting of second edition complete. Plans to release later this year, following consultation with CES countries. 12 Work-plan: resources • 26 Expert Group members • Secretariat – OECD Statistics Directorate Marco Mira d’Ercole (OECD Statistics Directorate) Nicolas Ruiz (OECD Statistics Directorate) Bindi Kindermann (ABS provided 1 staff year in-kind) • Other Financial support from Swiss FSO Claudia Biancotti, Bank of Italy Barbara Dunlop, consultant – engaged to prepare annotated table of contents for wealth standards and guidelines 13 Work-plan: meeting objectives 1. Discuss background to work and desired outcomes 2. Share experiences and key lessons 3. Finalise Terms of Reference of EG 4. Agree scope, allocation and timelines for EG’s work – Development of standards and guidelines for wealth statistics – Development of a framework for income, consumption and wealth statistics 14 Work-plan: plan for the meeting (1) Session 1: Background 9.00 – 11.00am, 23 March 2011 • Background to work and desired outcomes • Round table discussion • Members to introduce themselves, including their background and interest in the work • Nominate Chair • Discuss and agree Terms of Reference Session 2: EG DNA 11.30 – 12.00pm, 23 March 2011 • Background, goals, steps and outputs 15 Work-plan: plan for the meeting (2) Session 3: Wealth statistics Afternoon, 23 March 2011 • A. Sharing experiences and key lessons • Presentations of selected examples e.g. LWS, ECB, ABS, ONS • B. Developing standards for wealth statistics • Presentation of draft annotated table of contents • Discuss ToC and agree on required changes • Discuss work plan, including allocation of tasks • Presentation of data sources and methods 16 Work-plan: plan for the meeting (3) Session 4: Integrated framework Morning, 24 March 2011 • A. Sharing experiences and key lessons • Presentations of selected examples e.g. Statistics Canada, Statistics Denmark, ABS, Statistics Korea • B. Developing a statistical framework • Present issues paper on purpose, scope and expected outcomes • Discuss and agree, with any changes, draft outline • Discuss work plan, including allocation of tasks Session 5: Work plan and timelines Morning, 25 March 2011 • Discuss detailed work plan and timelines • Finalise Terms of Reference • Discuss next steps 17
"OECD-Eurostat Expert Group Measuring disparities in a national "