OECD Guidelines on MICRO-STATISTICS ON HOUSEHOLD WEALTH

1. OECD Guidelines on MICRO-STATISTICS ON HOUSEHOLD WEALTH

2. Why micro-statistics on household wealth are important? • Key component of household economic resources, alongside income and consumption • Inequality in the distribution of household wealth is significantly higher than that for household income, and may evolve differently overtime • The distribution of household wealth may affect the vulnerability of the economy to various shocks, and the sustainability of economic development

3. Why have these Guidelines been developed? • Recommendations by various bodies • 2011 Canberra Group Handbook on Household Income Statistics proposed “the development of international statistical standards for the collection and compilation of statistics on household wealth at the micro level” • Stiglitz-Sen-Fitoussi Commission recommendations to “consider income and consumption jointly with wealth” and “give more prominence to the distribution of income, consumption and wealth” • SNA provides framework for compilation and analysis of macro statistics for the whole economy, not always well-adapted to need of statistician's interested in distribution • No international standards in the micro field currently exist • Long term goals • Increase the ex ante comparability of existing measures • Encourage more countries to undertake measurement in this field

4. Who has developed these Guidelines? OECD Expert Group on Micro-Statistics on Household Income, Consumption and Wealth (EGICW) Established under aegis of OECD Committee on Statistics (CSTAT) in late 2010 with two-year mandate Chaired by Bob McColl (ABS, Australia), including representatives of statistical offices from 17 countries and other experts in the field (ECB, Federal Reserve Board, Eurostat, Luxembourg Income Study) Financial and in-kind support from Federal Statistical Office of Switzerland, Australian Bureau of Statistics and Bank of Italy Report reflect comments provided by CSTAT members and published on the responsibility of the OECD Secretary-General The Guidelines complement the second deliverable of EGICW, i.e. the companion report Framework for Statistics on the Distribution of Household Income, Consumption and Wealth

5. What are its objectives? • Reviewing and comparing country methodologies for producing micro-statistics on household wealth • Developing agreed definitions, classifications and other treatments for micro-statistics on household wealth • Assessing measurement issues associated with different components of household wealth and developing best-practice • Assessing the pros and cons of different sources and methods, and the range of analytic measures that could be used to describe household wealth • Identifying conceptual and definitional differences between macro- and micro-approaches to measuring household wealth

6. What is the structure of these Guidelines? Ch. 1 Introduction Ch. 2 Overview of household wealth statistics Ch. 3 Standard concepts, definitions, and classifications for household wealth statistics Ch. 4 Data sources and methods for producing household wealth statistics Ch. 5 Measurement Guidelines for standard components of household wealth Ch. 6 Measuring household wealth through surveys Ch. 7 Analytic measures Ch. 8 Dissemination Ch. 9 Quality assurance for household wealth statistics Annex A Eurosystem Household Finance and Consumption Survey Annex B Luxembourg Wealth Study Annex C Differences between micro and macro measures of household wealth Annex D Inventory of country methodologies for producing micro wealth statistics Annex E Household Definition in other statistical standards

7. What specific guidance is provided? (1) • A broad conceptual framework for micro-statistics on household wealth linking stocks and flow (page 42)

8. What specific guidance is provided? (2) • A recommended classification for components offinancial assets, non-financial assets, and liabilities to be collected and reported (page 67) • A number of general principles for recording, e.g. all household’s assets and liabilities should be: • valued at current market price, or closest equivalent, on the date to which statistics relate • recorded at the same point in time for all households • recorded on a gross basis (i.e. separately), with the exception of those between members of the same households • collected for all private households that reside in housing units and that are resident of the country to which statistics relate • Best practice in the measurement of specific components

9. For further information See full report, freely available at: www.oecd.org/statistics/guidelines-for-micro-statistics-on-household-wealth.htm • Contacts: • Marco Mira d’Ercole (OECD Statistics Directorate, marco.mira@oecd.org) • Nicolas Ruiz (OECD Statistics Directorate, nicolas.ruiz@oecd.org) • Bindi Kindermann (Australian Bureau of Statistics, bindi.kindermann@abs.gov.au)