LAC Team for Statistical Development LCSPP June 06, 2013 Outline LAC Team for Statistical Development (LAC TSD ) SEDLAC Datalib Poverty and Labor Briefs (PLB) LAC Equity Lab 2 About the LAC Team for Statistical Development (LAC TSD) The LAC Team for Statistical Development (LAC TSD) has worked to improve the quality, frequency, and accessibility of surveys and statistics and enhance the measurement of living conditions in LAC. The LAC TSD builds on the regional statistics work that began through an inter-institutional agreement established in 1996 with IADB and ECLAC: the MECOVI program (Spanish for the Improvement of Sur veys and Measurement of Living Conditions in LAC). The LAC TSD was created to continue, expand, and mainstream the work of this program. Three economists, two senior RAs and five junior RAs. 3 LAC TSD - Key ongoing products Theme FY13 activities (i) Shared Prosperity Agenda • Developed the LAC Shared Prosperity Convergence Index (LAC SPCI). • Developed a conceptual framework to shape the engagement of the LCR region with clients (MX CPS). • World/regional/country dashboards. • Presentations to senior management, PIMA-PG, RLT, other sectors, and at least seven country-specific presentations (BR, MX, CO, CR, PY, UY, ARG). (ii) Poverty and Labor Briefs (PLBs) • Fall 2012 PLB on the Power of Women in Reducing Poverty – delivered (printed, online and i-book). • Spring 2013 PLB on Shared Prosperity in LAC – launch planned June 14, 2013. (iii) LAC harmonized household and labor force data • Provided up-to-date harmonized data (Datalib) on household welfare (SEDLAC) and labor market outcomes (LABLAC). • Maintained the LAC Data Portal in partnership with CEDLAS (which makes more than 300 surveys available to the Bank staff and in some cases to the public). (iv) LAC Equity LAB (LEL) • Developed the concept, design and content of a beta version of the LEL (web-based platform to improve access to data and code) – internal launch (June). (v) Global Poverty Working Group (GPWG) • Represented LAC in the GPWG (working group with representatives from other regions, PRMPR and DECPI ) 4 Socio-economic Database for LAC (SEDLAC) The SEDLAC is a database of socio -economic statistics constructed from micro-data of the Latin American and Caribbean (LAC) household surveys. It is a joint project between: the Center for Distributive, Labor and Social Studies (CEDLAS) at Universidad Nacional de La Plata the World Bank’s Poverty and Gender Group for the Latin America and Caribbean region (LCSPP) 5 SEDLAC - Objectives Allow users to monitor trends in poverty, inequality and other socio-economic indicators in Latin America and the Caribbean. The vulnerable and middle classes are growing as Latin Americans move out of poverty 50 45 40 Headcount (%) Contribute to comparative research on social issues in the region. 35 38.6 43.2 33.7 32.3 30 25 21.1 26.6 20 15 10 5 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Poor Vunerable Middle Class Poverty appears to have declined further in 2012 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.70 Q1-2005 Q2-2005 Q3-2005 Q4-2005 Q1-2006 Q2-2006 Q3-2006 Q4-2006 Q1-2007 Q2-2007 Q3-2007 Q4-2007 Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009 Q2-2009 Q3-2009 Q4-2009 Q1-2010 Q2-2010 Q3-2010 Q4-2010 Q1-2011 Q2-2011 Q3-2011 Q4-2011 Q1-2012 Q2-2012 Q3-2012 Labor Income Poverty Index (LIPI) LABLAC complements SEDLAC household data with more detailed information on recent employment trends. 1.50 Argentina Brazil Ecuador Mexico Paraguay Peru 6 SEDLAC - Coverage of datasets Latin American countries and some Caribbean countries About 97% of total LAC population Almost 300 household surveys harmonized which are nationally representative. At least 10 observations for most Latin American countries. Variables: •demographic • regional • housing • education • labor • income 7 SEDLAC - Coverage of datasets 1990 Argentina Bahamas Belice Bolivia Brazil Chile Colombia Costa Rica Dominican Republic Ecuador EL Salvador Guatemala Haiti Honduras Jamaica Mexico Nicaragua Panama Paraguay Peru Suriname Uruguay Venezuela 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1 1 1 1 1 1 1 1 1 1 1 1 3 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 1 1 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 8 SEDLAC – Issues when comparing official poverty figures Dif ferences across countries are mainly due to: Welfare variables: income or consumption construction of income (or consumption) adjustments for demographics adjustment for regional prices Poverty lines: minimum calories requirement construction of basic bundle reference group Orshansky coefficient 9 SEDLAC - The process of harmonization To alleviate (not eliminate) these comparison issues, we make all possible ef forts to make statistics comparable across countries and over time by: Using the same welfare measure among LAC countries: Percapita household Income. Using the same methodology for constructing this income aggregate for all countries. Using International poverty lines in US dollars PPP ($1 .25, $2.50 and $4.00). 10 SEDLAC - Main Methodological Issues Household Surveys: Change in geographical coverage. National and urban surveys. Changes and improvements in surveys. Incomes: The household excludes renters, domestic servants and their families. Recall period: we only include income in the last month. Non-current or exceptional incomes are excluded (sale of assets, gifts, etc.). Implicit rent from owing a house (self-reported or 10%). Non-response and missing incomes (consider raw data). Zero incomes are considered by the LAC TSD. 11 SEDLAC - Systematic data archiving is of essence CCC_YYYY_SSSS_ vNN _M_vNN_A_SEDLAC 12 Datalib – Beta Version Allows users to get direct access to the microdata library maintained by LAC TSD team, and extract all or selected variables for subsequent analysis in Stata. Generates income variables in PPP terms. Creates any possible poverty line in US Dollars a day. Appends two or more data sets if more than one year is requested. … other features. 13 Datalib – How does it work? 14 Poverty and Labor Brief (PLB) In addition to harmonizing, managing and providing accessibility to regional statistics and databases, LACTSD uses the data to monitor bi-annually poverty and labor market outcomes in the region. 15 The LAC Equity LAB (LEL) – Beta Version What: The LAC Equity LAB is a data sharing platform as it will harmonize and/or standardize the micro data, STATA codes (and methodology notes) and will use business intelligence tools to make this information widely and easily accessible. How: LEL will provide a web -based platform to make the data, the code, and the analysis available and accessible. When: A basic beta version of the LAC Equity Lab will be released internally. Who: The LAC TSD will also train regional staf f (especially RAs) from other sectors to ensure that they can use the Lab and have access to the latest datasets and codes. 16 The LAC Equity LAB (LEL) – objectives Improving access to micro data and indicators in a way that is easy to use and replicate in order to help practitioners build a critical body of knowledge on how to enhance equity. Providing senior management just -in-time data and strategic diagnostic required to position the bank region as credible leader on measurement and analysis. Building institutional memory and easy access to key data on equity. Recognizing the work of junior staf f. 17 18 Thank You 19