E-frame conference, Paris, June 2012 Income inequalities Denis Leythienne and Liviana Mattonetti (Eurostat)

E-frame conference, Paris, June 2012 I. MILESTONES 2007: ‘Beyond GDP’ Conference (OECD/EC/EP/Club of Rome/WWF). 2008/2009: Stiglitz/Sen/Fitoussi Commission on the ‘Measurement of Economic Performance and Social Progress’. Communication of the Commission: ‘Beyond GDP’ 2010: The European Council adopts Agenda 2020 for a ‘smart, sustainable and inclusive growth’ 2011: Report of the ESS Sponsorship on SSF recommendations 2012: First implementation of ESS / Sponsorship recommendations in the field of material wellbeing

E-frame conference, Paris, June 2012 II.EUROPEAN RECOMMENDATIONS Main indicator of material wellbeing:  Household Gross Disposable Income (GDI)  Adjusted for social transfers in kind (Goods and services in health, education etc… financed by government)  In real terms (in PPS / deflated for comparisons over space / time)  Per capita (ideally per consumption unit)

E-frame conference, Paris, June 2012 II.EUROPEAN RECOMMENDATIONS Macro-aggregates  Publish and analyse annual data on adjusted GDI / actual consumption of households, per capita / CU, in Purchasing Power Standards (PPS)  Publish jointly, within the ESS, quarterly data on adjusted GDI of households per capita, in real terms, possibly seasonally adjusted

E-frame conference, Paris, June 2012 II.EUROPEAN RECOMMENDATIONS Income distribution  Use the adjusted GDI of households as the reference concept to link National Accounts (NA) data with social statistics  Agree at international level on a methodology to link NA data with social statistics in order to breakdown adjusted GDI by category of households  Estimate, in a second step, the growth rate of adjusted GDI / actual consumption by category of households  Collect, if deemed necessary, additional micro-data to better impute social transfers in kind at the micro level

E-frame conference, Paris, June 2012 III.IMPLEMENTATION Macro aggregates – quarterly data:  October 2012: Eurostat re-focuses its quarterly household news release on adjusted GDI per capita in real terms (seasonally adjusted)  2012/2014: The ESS implements a standard template for the dissemination of quarterly household data

E-frame conference, Paris, June 2012 III.IMPLEMENTATION Macro aggregates – annual data:  February 2012: Annual data on Adjusted GDI per capita in PPS released by Eurostat (t_nasa\tec00113 in Eurobase)  June 2012: Publication of a Statistics in Focus on the impact of the crisis on the material wellbeing of households (adjusted GDI and actual consumption)

E-frame conference, Paris, June 2012 III.IMPLEMENTATION Income distribution:  Eurostat/OECD Expert Group (EGDNA) set-up to study the methodological aspects of income distribution in OECD countries  A minima exercise carried out by Eurostat on the basis of harmonized data available at European level  End 2012/Early 2013: first results of EGDNA / Eurostat estimates for the breakdown of household income and consumption per household/CU by category of households  2013: improved imputation of social transfers in kind (Eurostat)

E-frame conference, Paris, June Gross Disposable Income: EU-SILC coverage of NA totals (First results of the a minima exercise) 11

E-frame conference, Paris, June 2012 III.IMPLEMENTATION Next steps of the a minima exercise:  July 2012: Breakdown of income data for a test country –Imputations/adjustments on EU-SILC and NA data (e.g. property income / social transfers in kind) –Sensitivity analysis –Discussion of the results within the EGDNA framework  Autumn 2012: Extension of the breakdown to the remaining countries of EU27 and EFTA  December 2012: Publication of first results on income distribution within EU and EFTA countries

E-frame conference, Paris, June 2012 Questions / Comments ?