1. Quality issues on the way from survey to administrative data: the case of SBS statistics of microenterprises in Slovakia Andrej Vallo, Andrea Bielakova Statistical Office of the Slovak Republic Helsinki, 5 th May 2010

2. Background Official statistics in the Slovak Republic based predominantly on surveys Use of administrative data for production of statistics limited some in National Accounts and Social Statistics General trends present in Slovakia users’ demands vs. budget constraints and respondent burden re-use of available data expected by respondents If high quality and low costs are to be achieved, then production system based only on surveys is not sustainable Adopted strategy: extensive use of administrative data Starting with the most problematic survey: annual SBS survey of microenterprises 25th May 2010Quality in Official Statistics 2010

3. Quality issues in SBS statistics Three annual SBS surveys Survey of microenterprises – data not published due to quality issues Low response rate, large proportion of allegedly inactive units, estimates likely to be biased 35th May 2010Quality in Official Statistics 2010

4. Outline of a solution Target solution: Use of annual income tax returns data for replacement of the survey (complete or partial), or improvement of the estimates Building on Phare project – complete documentation of available administrative data sources (content, structure, maintenance and accessibility) First step: a feasibility study if and how the tax data can be used for SBS Assessment of the tax data quality - essential precondition of success Administrative data quality assessment framework was needed 45th May 2010Quality in Official Statistics 2010

5. Administrative data quality assessment frameworks Lack of generally adopted AD quality assessment framework Different approaches: Development of theoretical background (Wallgren and Wallgren, 2007) General rules and recommendations (Eurostat 2003, Statistics Finland 2007, UNECE 2008, ESQR 2009, EHQR 2009...) Individual countries’ quality assessment frameworks (ONS, Statistics Netherlands, Istat...) Diverse selection of dimensions, diverse understanding of dimensions and various indicators different degree of correspondence to Code of Practice different degree of standardisation and formalisation Input oriented and output oriented indicators 55th May 2010Quality in Official Statistics 2010

6. A feasibility study of tax data use for production of statistics Selection and prioritisation of indicators Input oriented indicators no experience with production of statistics from the data Core indicators (necessary conditions): Coverage and linkability of the data Availability and comparability of the variables Additional indicators: Target population Definition and identification of survey units Timeliness and reference period Structure and format of the data Metadata and clarity 65th May 2010Quality in Official Statistics 2010

7. Coverage and linkability issues Tax returns data come in four separate files Main Form, Profit & Loss Statements, Balance Sheets, Tax Register Different identifiers: Unique identifiers of taxpayers different from universally used identifiers of enterprises the link between them established in the Tax Register Overcoverage in the Main Forms data linking with data from Statistical Business Register needed for selection of the units from target population Undercoverage in the P & L Statements and Balance Sheets available for 55% of the target population Incompleteness of the Tax Register (80% of the units) Errors in links between the identifier systems 75th May 2010Quality in Official Statistics 2010

8. Availability of variables (turnover related) Main DPFO_B Form variables Structural Business Statistics variables Profit &Loss Statement variables (55% coverage) Current survey variables (needs of National Accounts) Total turnover (100% coverage) Total turnover > Sales of own products and services > Sales of own products > Sales of services > Sales of goods > Sales of goods in retail > Sales of goods in wholesale > Turnover from other sources Sales of tang. invest. goods > Sales of tang. invest. goods 85th May 2010Quality in Official Statistics 2010 Scope of the variables Level of detail in the variables

9. Comparability of variables 95th May 2010Quality in Official Statistics 2010 Comparison of the values of Total turnover provided in the survey and in the tax return (P & L Statement) Definitions of the variables correspond to each other exactly The values differ in almost 40% of the comparisons Distribution of non-zero differences less than 10%

10. Conclusions and next steps The identified issues do not allow to use the data directly The Tax register has to be completed and errors in links removed Further checks have to be applied to ensure internal consistency of the tax data Models for estimation of missing variables have to be designed afterwards This will be done in three steps: 1.Estimation of variables from the P & L statements for the units where these data is missing to ensure complete and correct administrative data 2.Editing of the data to ensure consistency between tax data and survey data 3.Estimation of variables for SBS and National Accounts 105th May 2010Quality in Official Statistics 2010

11. THANK YOU FOR YOUR ATTENTION... comments, questions or suggestions are warmly welcome 115th May 2010Quality in Official Statistics 2010

12. References Bernardi, A., Cerroni, F., De Giorgi, V. (2008): A methodological process for assessing variables coming from administrative sources. An application to the Tax Authority Source (Sector Studies). Proceeding of European Conference on Quality in Official Statistics 2008, Rome: Istat. http://q2008.istat.it/sessions/paper/29Bernardi.pdf Daas, P.J.H., Arends-Tóth, J., Schouten, B., Kuijvenhoven, L. (2008): Quality framework for the evaluation of administrative data. Proceeding of European Conference on Quality in Official Statistics 2008, Rome: Istat. http://q2008.istat.it/sessions/paper/21Daas.pdf Eurostat (2003): Item 6 Quality assessments of administrative data for statistical purposes, Luxembourg: Working group Assessment of quality in statistics, Eurostat. http://circa.europa.eu/Members/irc/dsis/qis/library?l=/meeting_october/items6pdf/_EN_1.0_&a=d Eurostat (2005): Standard quality indicators, Luxembourg: Quality in Statistics Working Group, Eurostat. http://circa.europa.eu/Members/irc/dsis/qis/library?l=/meeting_23-24_2005/09-standard_indicatorsdo/_EN_1.0_&a=d Eurostat (2009): ESS Quality and Performance Indicators - 2009. Progres report. Luxembourg: Quality in Statistics Working Group, Eurostat. http://circa.europa.eu/Members/irc/dsis/qis/library?l=/meeting_n11_2009/performance_indicatorspd/_EN_1.0_&a=d Statistics Finland (2007): Quality Guidelines for Official Statistics – 2nd Revised Edition. Helsinki: Statistics Finland. Vale, S. (2008): Using Administrative Sources for Official Statistics. A Handbook of Principles and Practices. Geneva: United Nations Economic Commission for Europe. Wallgren, A., and B. Wallgren (2007): Register-based Statistics: Administrative Data for Statistical Purposes, Chichester: Wiley. 125th May 2010Quality in Official Statistics 2010