Household Budget Survey: Income, Consumption, Poverty, and Inequality in Moldova

1. HBS Results, 2006

2. Topics HBS general characteristic Indicators obtained based on HBS The main characteristics of households under the survey Definition of income, size and structure of incomes Definition of consumption expenditures, size and structure of expenditures Poverty and inequality indicators Perspectives for future

3. Scope: all the persons form the households selected at random, except for the persons who live in institutional units (prisons, residential institutions, students’ hostels, etc.) Sample: 5748 households annually, each household is surveyed during one month Survey tools: Household Main Questionnaire, Household Diary, Non-response file, Interviewer’s Manual, etc. Data registration method : “face to face” interview, proxy interview, self registrations Reference period: 2 weeks, current month, last 6 and12 months Period for data registration: during 3 compulsory visits. Results’ dissemination: quarterly and annual information memo, statistical booklet “Aspects regarding population living standards”, statistical year book and other statistical publications, NBS web page HBS general characteristic

4. Monetary indicators Income Expenditure Consumption Non-monetary indicators Education Health Employment Living standards Evaluation of living standards Poverty and population inequality indicators Level of indicators’ dissagregation: residence area, statistical zones, types of households, characteristics of head of household, quintiles, etc Indicators’ generalization : quarterly and annually Indicators obtained based on HBS

5. Households’ characteristics

6. Disposable income – current revenues from different sources Incomes are registered at person level, except for the incomes related to individual agricultural activity Income Salaries Own account activities Property primary Total incomes Social services Diverse current transfers, including remittances Other revenues secondary cash incomes + in kind incomes

7. Population incomes (I) • Average disposable income per persons – 839,6 lei in nominal terms, and 745 lei – in real terms • The highest incomes are in urban area, especially in Chisinau – 1149,1 lei • The main income source is salary-related activity – 41,6%; • The main income source in rural area is income from individual agricultural activity– 34,5% • Remittances are an important income source – 14%

8. Population income (II)Quarterly evolution • Total • Big cities • Small towns • villages

9. Consumption expenditures – totality of expenditures made by a household for current consumption Expenditures are registered at household level COICOP classification is used, it provides for 12 major groups Expenditures Total consumption expenditures Cash expenditures + In kind expenditures • Own consumption • In kind payment from working places • Food products received for free, different subsidies

10. Population expenditures (I) • Average consumption expenditures per person – 953,3 lei in nominal terms and 846 lei – in real terms • The highest expenditures are in urban area, especially in Chisinau – 1209,9 lei • The highest share goes for expenditures for food products – 44,4%; • The share of in kind expenditures out of the total of consumption expenditures is 17,0%

11. Population expenditures (II)Quarterly evolution • Total • Big cities • Small towns • villages

12. Social-economic differentiation • Gini coefficient - 0,36 • Correlation between the best and the least ensured population incomes - 7,1 ori • The best ensured population accounts for 6,2% out of total country income, and for the least ensured – 43,8%

13. Poverty indicators (I) • We use population expenditures per adult equivalent for calculating welfare indicators • Total poverty line accounts for 747 lei, extreme poverty line accounts for 404 lei • Total poverty rate -30,2%, extreme poverty rate -4,5%

14. Poverty indicators (II) Poverty profile. Who are the poor? Poverty prevails in rural area – 34,1% as against 24,8% in urban area Persons from big households (5 and more persons), - poverty rate is 39% Persons from households with 3 and more children, poverty rate 48% Persons from households with many generations – poverty rate 35% Farmers’ and pensioners’ households – poverty rate 42%

15. Methodological aspects Revision of consumption expenditures classifier and submission of data disaggregated at 4 digits level according to COICOP classifier Getting familiar with EUROSTAT poverty and social exclusion indicators Sample framework Annual rotation of 20% of PSUs Carrying out the listing on rural areas for adjusting the households’ database Data collecting Shifting towards modern data collecting method – laptop (CAPI) Development of a set of trainings for interviewers and setting up a network of professional data collectors Results’ dissemination Placing on NBS web page HBS aggregated database Statistical booklet “Aspects regarding population living standards, 2006” Zone seminars with LPA representatives Thematic round tables for different groups of users Public awareness about HBS Perspectives for future

16. Ala NegruţaChef of Social and Living Standards Statistics Divisiontel: 40 30 78 ala.negruta@statistica.md Comments Questions ??? Thank you for your attention!