anatolii rojco population inequality and welfare measuring (based on households budgets survey)...
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ANATOLII ROJCO
Population Inequality and Welfare Measuring
(based on Households Budgets Survey)
”One cannot achieve sustainable welfare if half of the country will prosper and half would live in misery”Franklin Delano ROOSVELT - USA President (1932-1945)
The main goal of the investigation is to estimate inequality using modern scientific methods of inequality measuring and analysis.
The object for inequality measuring and inequality if the household. The data source are the data of Household Budget Survey carried out by the
National Bureau of Statistics of the Republic of Moldova.
The main indicator or population welfare are the consumption expenditure of households.
Households’ distribution in correlation with consumption expenditures and disposable income (2005), %
Quintiles of consumption expenditures
Share of households whose consumption expenditures as related
to disposable incomes are:
Share of households whose consumption expenditures over pass
disposable income:
higher lower equalup to 1,2
timesfrom 1,2 to 1,5
timesover 1,5
times
I 81,9 17,9 0,2 17,9 16,0 48,0
II 54,4 45,4 0,2 22,4 15,5 16,5
III 33,4 66,4 0,1 17,1 8,6 7,7
IV 28,0 71,9 0,1 14,0 8,4 5,6
V 21,2 78,8 - 11,4 5,7 4,1
Total 40,4 59,5 0,1 16,2 10,5 13,7
0.39220.3866
0.3766 0.37750.3637
0.35180.3571
0.3766
0.41050.4014
0.3871
0.42080.4279
0.4165
0.43420.4435
0.3
0.4
0.5
1998 1999 2000 2001 2002 2003 2004 2005
Consumption expenditures Disposable incomes
Dynamics of Gini coefficient during 1998-2005
Dynamics of quintile and decile coefficients of funds
6.79
6.15.84
6.416.96.76
7.227.62
13.2612.19
11.46
11.67
10.15 11.1
9.87
9,22
5.5
6.5
7.5
8.5
9.5
10.5
11.5
12.5
13.5
1998 1999 2000 2001 2002 2003 2004 2005
quintile decile social security line
Consumption expenditure distribution by quitiles
6
10.7
15.3
22.2
45.6
7.5
11.6
15.7
21.6
6.7
11.2
15.4
21.7
4543.6
0 5 10 15 20 25 30 35 40 45 50
I quintile
II quintile
III quintile
IV quintile
V quintile
1998 2003 2005
0
20
40
60
80
100
120
0 10 20 30 40 50 60 70 80 90 100
Uniform distribution line 1998 2003 2005
Lorenz Curves
0.3823
0.3227
0.3443
0.349
0.3572
0.3844
0.399
0.3588
0.3568
0.3565
0.33140.3297
0.3166
0.3252
0.3656
0.3426
0.3481 0.3468
0.3776
0.3462
0.3282 0.3288
0.3476
0.3411
0.3
0.325
0.35
0.375
0.4
1998 1999 2000 2001 2002 2003 2004 2005
Big cities Other cities Villages
Gini coefficient dynamics in territorial aspect
107.1
100
96.6
102.1
106.1
107.8106.6
107.4
105.5
101.5
96.796.3
100.2
98.6
97.4
95
100
105
1998 1999 2000 2001 2002 2003 2004 2005
GDP (comparable prices)Gini coefficient (consumption expenditures)
GDP evolution and Gini coefficient as against previous year, %
Level of population inequality in different countries
a – consumption expenditures b – disposable income c – author’s calculations
Country YearGini coefficient Fund coefficient
decile quintile
Countries with reduced Gini coefficient(G ≤ 0,3)
Dania Sweden Norway Finland Ukraine Germany
1997b
2000b
2000b
2000b
2003a
2000b
0,2470,2500,2580,2690,2810,283
8,1926,1676,0005,6505,8976,906
4,3134,0223,8753,8234,0764,341
Countries with average Gini coefficient (0,3 < G ≤ 0,4)
Romania France EstoniaItaly Moldovac
Russia
2003a
1995b
2003a
2000b
2005a
2002a
0,3100,3270,3580,3600,3780,399
7,3948,96411,04011,65211,11712,750
4,8405,5836,3886,4626,7927,639
Countries with high Gini coefficient (G > 0,4)
GeorgiaTurkmenistanEl SalvadorBrazil BotswanaNamibia
2003a
1998a
2002b
2003b
1993a
1993b
0,4040,4080,5240,5800,6300,743
15,15012,19255,43957,2580,857129,000
8,2867,78720,70423,88531,95556,214
Sex and age structure of households depending on their welfare level, %
Big cities Other cities Villages
I V I V I V
Sex of household head:
man 43,7 40,9 59,7 52,8 69,1 56,3
woman 50,3 59,1 40,3 47,2 30,9 43,7
Age of household head:
up to 25 years old – 17,8 1,0 5,5 1,0 2,2
25-34 years 19,1 22,6 14,0 5,3 11,5 6,1
35-44 years 23,6 15,7 25,0 16,8 23,4 16,0
45-54 years 24,2 17,2 30,1 28,5 25,8 29,8
55-64 years 17,4 13,9 17,4 28,5 15,3 20,4
65 and over 15,7 12,8 12,4 15,4 23,0 25,6
Total 100,0 100,0 100,0 100,0 100,0 100,0
Distribution of households with different welfare levels by number and composition, %
Number of household members:Big cities Other cities Villages
I V I V I V
1 member 4,3 35,9 6,6 40,9 12,3 40,3
2 members 17,6 32,0 19,9 32,7 22,5 30,3
3 members 22,5 19,4 27,7 18,1 21,2 15,4
4 members 43,6 9,4 35,8 7,6 22,4 9,7
5 members 7,7 2,9 5,4 0,7 12,9 2,8
6 and more members 4,2 0,4 4,6 – 8,7 1,7
Total 100,0 100,0 100,0 100,0 100,0 100,0
Household composition:
With one child 41,4 21,1 33,2 13,5 21,6 13,9
With two children 5,2 5,0 15,6 3,1 20,9 6,5
With three children 7,7 0,6 2,5 0,3 7,2 1,2
With four and more children 4,2 – 1,8 – 3,1 0,3
Without children 41,4 73,3 46,8 83,1 47,2 78,2
Total 100,0 100,0 100,0 100,0 100,0 100,0
Disposable income in households with different welfare level(in average per one member per month)
Big cities Other cities Villages
I V I V I V
Disposable income, lei 384,80 1191,67 297,45 963,09 209,88 904,10
including:
Employment related income 254,80 772,42 213,32 482,72 48,70 217,04
Income from agriculture 0,00 3,20 15,56 57,55 87,34 306,11
Income from non-agriculture production
0,00 50,87 6,69 50,05 – 0,42 37,73
Income from property 0,00 5,89 0,00 0,00 0,00 1,36
Social payments 85,76 90,33 50,21 121,44 61,70 115,81
Other current transfers 44,24 268,44 11,67 251,51 12,51 225,84
Out of which:
Money from abroad 17,98 75,99 2,85 155,37 4,17 180,44
Distribution of households and volume of money from abroad, %
Big cities Other
cities Villages
Households receiving money from abroad
Quintiles: I 1,6 3,3 6,7
II 1,3 6,9 12,9
III 11,6 20,1 18,6
IV 16,0 26,3 21,1
V 69,5 43,4 40,8
Total 100,0 100,0 100,0
Volume of money received from abroad
Quintiles: I 1,4 1,7 3,4
II 1,1 3,6 8,1
III 7,6 13,0 12,9
IV 7,2 25,8 18,9
V 82,7 55,9 56,7
Total 100,0 100,0 100,0
Consumption expenditures in households with different welfare levels(in average per one member per month)
Big cities Other cities Villages
I V I V I V
Total consumption ditures, lei
176,88
1200,56
177,80
1005,51
163,43
1058,54
Including in %:
– food and non-alcoholic drinks 61,40 37,30 70,93 47,07 78,49 42,55
– alcoholic drinks and tobacco 3,46 1,90 1,65 1,19 4,58 2,50
– clothes and shoes 2,58 12,93 1,52 10,82 1,93 8,20
– dwelling maintenance 15,31 13,57 15,15 16,19 7,33 23,95
– dwelling equipping 0,84 3,63 1,96 2,08 1,78 3,98
– health 3,60 3,70 2,24 5,28 1,19 5,87
– transport 3,43 7,42 0,28 2,94 0,76 3,80
– communication services 2,29 3,98 3,01 4,41 2,02 3,51
– culture and entertainment 1,91 4,22 0,86 1,90 0,43 3,23
– education 0,59 2,17 0,16 4,08 0,09 0,39
– hotel, cafeteria, restaurant 0,69 3,78 0,00 0,40 0,01 0,14
– other goods and services 3,91 5,30 2,25 3,64 1,38 1,87
Housing depending on household’s welfare level and residence of its members
Big cities Other cities Villages
I V I V I V
By one household member, m2
total area 13,1 22,9 20,4 38,2 23,3 45,6
habitable area 8,2 14,2 14,0 26,0 16,7 32,8
Distribution of household members by assurance with habitable area, %
up to 9,0 m2 65,2 31,8 33,0 6,5 23,2 3,0
9,01 – 20,0 m2 30,5 50,1 48,7 39,1 49,2 24,3
more than 20,0 m2 4,3 18,1 18,3 54,4 27,6 72,7
Total 100,0 100,0 100,0 100,0 100,0 100,0
Presence of utility commodities in the dwelling depending on household welfare level ( in % of total of households )
Big cities Other cities Villages
I V I V I V
Electricity 100,0 100,0 96,8 100,0 96,8 100,0
Water
water pipe line 100,0 100,0 48,1 60,4 1,3 12,7
from water pump – – 13,3 15,9 0,4 1,4
from well – – 36,1 23,6 96,6 82,8
other – – 2,5 – 1,7 3,1
Sewerage 100,0 100,0 48,1 60,4 1,3 12,7
Hot water (centralized supply) 82,6 73,6 38,6 32,4 – –
Gas
network (centralized supply) 65,2 69,4 74,7 78,6 6,3 22,8
bottled 17,4 2,4 22,8 21,4 83,8 76,0
Heating:
centralized 100,0 98,6 13,3 16,5 – – autonomous – – 30,4 44,0 1,4 13,6 stove – centralized on gas – 1,4 17,7 18,7 1,3 7,2 stove with wood and coal – – 38,0 20,9 97,3 79,1Bath or shower 95,7 99,0 39,2 54,4 0,1 2,7Telephone 78,3 85,6 66,5 89,0 33,2 68,4
Households’ equipping with durables(pieces by 100 households)
Durables Big cities Other cities Villages
I V I V I V
Radio 14 10 7 13 19 25
TV set: - colour 84 94 67 89 34 71
- white-black 4 3 21 9 40 24
Tape recorder 30 37 13 26 20 23
Video receiver 14 17 2 10 3 13
Musical set 3 15 1 6 1 7
Camera 32 36 4 12 4 11
PC 5 15 ─ 3 ─ 3
Fridge 91 84 82 93 41 77
Washing machine 46 58 46 64 28 56
Sewing machine 28 29 16 27 9 26
Vacuum cleaner 51 66 30 52 7 26
Microwave 5 6 1 3 ─ 3
Bicycle for adults 5 5 1 8 11 17
Motor bicycle ─ ─ 1 2 4 7
Car 11 15 4 23 4 20
Durables’ operation period in households
Durables
Operation term, %
TotalUp to 5 y 6-10 y 11-15 y 16-20 y 20 and over
Color TV set
Big cities I 26,9 45,3 17,5 10,3 – 100,0
V 43,1 28,9 19,5 6,3 2,3 100,0
Other cities I 36,0 25,0 22,0 7,0 10,0 100,0
V 38,9 27,0 14,5 14,4 5,3 100,0
Villages I 53,9 22,0 16,7 6,1 1,3 100,0
V 49,5 27,4 14,8 6,3 2,0 100,0
Fridge
Big cities I 16,1 14,2 3,8 17,2 48,7 100,0
V 21,8 15,9 15,1 15,4 31,9 100,0
Other cities
I 5,5 10,0 18,9 22,7 42,8 100,0
V 15,0 14,1 15,6 19,8 35,5 100,0
Villages I 6,7 7,3 14,6 15,5 56,0 100,0
V 14,9 10,2 15,2 16,5 43,2 100,0
Washing machine
Big cities I 37,6 7,5 11,4 32,1 11,4 100,0
V 41,6 20,8 10,9 9,8 16,9 100,0
Other cities I 11,2 15,4 22,2 18,9 32,3 100,0
V 24,7 16,0 17,0 15,9 26,5 100,0
Villages I 14,2 15,9 17,5 14,2 38,2 100,0
V 23,9 13,2 19,3 13,7 30,0 100,0
Car
Big cities I – – 48,7 – 51,3 100,0
V 5,2 17,5 48,8 17,0 11,5 100,0
Other cities I – – 22,8 13,7 63,5 100,0
V – 23,8 28,1 28,3 19,9 100,0
Villages I – 12,1 12,7 23,9 51,3 100,0
V 3,3 16,9 35,1 22,0 22,7 100,0
Land usage by households, %
Big cities Other cities Villages
I V I V I V
Land:
– have – 11,3 59,9 66,8 100,0 100,0
– don’t have 100,0 88,7 40,1 33,2 – –
Total 100,0 100,0 100,0 100,0 100,0 100,0
Type of land:
– near house plot – 1,0 51,4 52,2 99,5 99,8
– auxiliary household – 1,4 5,2 13,2 84,8 86,1
– villa land – 91,7 20,4 25,3 – –
Health status of household members depending on welfare level, %
Big cities Other cities Villages
I V I V I V
Chronic disease:
– don’t have 68,0 57,3 77,1 56,0 72,5 54,7
– hypertonic disease 4,6 9,1 5,5 10,1 3,6 8,3
– hear diseases 5,0 3,9 1,4 4,5 1,9 4,3
– chronic bronchitis 1,2 2,8 1,9 1,6 1,1 1,7
– Bronchitis asthma – 0,8 0,4 0,3 0,5 0,5
– digestive system diseases 6,3 10,1 4,9 9,9 4,7 9,7
– kidney diseases 2,5 3,6 1,1 3,0 2,3 3,4
– diabetes – 1,1 0,5 2,3 0,5 1,0
– tuberculosis – 0,1 – 0,4 0,3 0,1
– other diseases 12,4 11,2 7,2 11,8 12,6 16,3
Total 100,0 100,0 100,0 100,0 100,0 100,0
Beneficiaries of medical insurance:
– are 77,0 87,2 73,5 84,1 66,2 75,3
– are not 23,0 12,8 26,5 15,9 33,8 24,7
Total 100,0 100,0 100,0 100,0 100,0 100,0
Household expenditures for health
Big cities Other cities Villages
I V I V I V
Lei per month
Total expenditures: 6,56 45,32 4,26 53,17 2,00 64,51
including:
– doctor consultation, laboratory tests, diagnosis, physic - therapeutic treatment
0,00 6,67 0,40 7,74 0,13 4,66
– payment for hospital treatment 2,38 1,73 0,10 1,03 0,04 5,52
– dentist services 0,00 7,25 0,00 4,55 0,10 11,29
– drugs procurement 4,18 29,67 3,76 39,85 1,73 43,04
In percentage
Total expenditures : 100,0 100,0 100,0 100,0 100,0 100,0
including:
– doctor consultation, laboratory tests, diagnosis, physic - therapeutic treatment
0,0 14,7 9,4 14,6 6,5 7,2
– payment for hospital treatment 36,3 3,8 2,3 1,9 2,0 8,6
– dentist services 0,0 16,0 0,0 8,6 5,0 17,5
– drugs procurement 63,7 65,5 88,3 74,9 86,5 66,7
Education level of household members (of 15 years and over), %
Education
Big cities Other cities Villages
I V I V I V
University 12,1 37,2 3,8 27,0 1,3 12,8
Secondary vocational (college) 10,3 16,9 11,5 27,6, 4,8 13,9
Secondary general (lyceum) 44,8 36,9 52,9 28,3 32,7 34,6
Incomplete gymnasium 25,9 8,1 24,2 14,6 45,1 27,6
Primary 5,2 0,6 4,1 1,9 10,7 7,4
With no education 1,7 0,3 3,5 0,6 5,4 3,7
Total 100,0 100,0 100,0 100,0 100,0 100,0
Households with children studying on contract basis, %
Big cities Other cities Villages
I V I V I V
Share of households with children studying on contract basis out of the total number of households
13,8 16,4 3,6 13,9 2,5 9,0
Distribution of households with children studying on contract basis (all households - 100,0%)
1,8 59,9 7,8 31,1 10,8 28,8
Distribution of households with different welfare levels by number of visits to service providers for population, %
QuintileTotal
I II III IV V
District health center
Big cities 2,3 3,3 11,5 23,4 59,5 100,0
Other cities 9,6 16,2 18,3 22,8 33,1 100,0
villages 5,7 16,0 15,5 21,9 40,9 100,0
Post Office
Big cities 3,2 6,0 15,3 32,7 42,8 100,0
Other cities 12,8 23,5 23,5 21,8 18,4 100,0
villages 17,9 21,5 22,4 23,0 15,2 100,0
Local administration body
Big cities 0,0 0,0 0,0 71,3 28,7 100,0
Other cities 20,3 10,2 28,3 23,0 18,2 100,0
villages 11,3 23,4 22,6 28,0 14,7 100,0
Library or club
Big cities 2,9 6,4 15,7 21,6 53,4 100,0
Other cities 11,5 16,2 5,4 21,7 45,2 100,0
Villages 10,2 21,3 11,3 16,6 40,6 100,0
Concert hall, theatre, cinema
Big cities 0,0 0,0 6,0 6,8 87,2 100,0
Other cities 0,0 0,0 15,0 15,0 70,0 100,0
Villages 0,0 0,0 0,0 0,0 100,0 100,0
Self-assessment of household’s living standards, %
Big cities Other cities Villages
I V I V I V
Very good – 0,3 – – – –
Good 4,3 9,4 0,6 7,1 0,9 8,0
Satisfactory 56,5 69,7 57,0 68,7 73,0 79,3
Bad 26,1 18,8 34,2 23,1 22,0 10,9
Very bad 13,1 1,8 8,2 1,1 4,1 1,8
Total 100,0 100,0 100,0 100,0 100,0 100,0
Level of difficulty when paying for utility services depending on household’s welfare level, %
Big cities Other cities Villages
I V I V I VCentralized heating:
– never 4,3 35,8 – 16,7 – –
– sometimes 43,5 33,4 100,0 83,3 – –
– frequently 52,2 30,8 – – – –
Natural gas centralized supply :
– never 66,7 74,6 14,7 38,2 55,1 8,5
– sometimes 13,3 21,6 69,8 32,8 40,8 65,8
– frequently 20,0 3,8 15,5 29,0 4,1 25,6
Electricity:
– never 52,2 73,0 40,5 53,8 45,5 31,6
– sometimes 34,8 22,8 47,7 27,5 51,2 67,0
– frequently 13,0 4,2 11,8 18,7 3,3 1,4
Access to centralized hot water supply:
– yes 39,1 41,2 – – – –
– no 60,9 58,8 100,0 100,0 100,0 100,0
– frequently 13,0 4,2 11,8 18,7 3,3 1,4
Size of monthly disposable incomes sufficient for settling household's problems (per one household member, lei)
Big cities Other cities Villages
I V I V I V
Disposable income 384,80 1191,67 297,45 963,09 209,88 904,10
Sufficient amount to ensure:
- minimal needs 359,47 563,40 306,90 495,72 321,29 423,95
- normal needs 1235,40 1863,90 876,42 1375,43 875,38 1345,54
Difference between the disposable income and the amount sufficient for ensuring :
– minimal needs 25,33 628,27 9,45 467,37 -111,91 480,15
– normal needs -850,60 -672,23 -578,97 -412,34 -665,50 -441,44