The Sources and Uses of Survey Data on Armenia
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The Sources and Uses of Survey Data on Armenia

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  • 1. Overview BEEPS LiTS Population Census Household Surveys Extra Slides The Sources and Uses of Survey Data on Armenia Shushanik Hakobyan University of Virginia September 18, 2009
  • 2. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Outline 1 Overview of Micro Data 2 Business Environment and Enterprise Performance Survey (BEEPS) 3 Life in Transition (LiTS) 4 2001 Population Census 5 Household Surveys
  • 3. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Types of Micro Data Unit of observation A firm An individual Data structure Cross-section data: Observations on a set of variables in a given period, t, for individual units i=1,2,. . . ,n. Independent cross-sections => Pooled data Panel (or longitudinal) data
  • 4. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Micro Data on Armenia Firm-level data Business Environment and Enterprise Performance Survey (BEEPS) Individual-level data Life in Transition Survey (LiTS) Population Census Household Surveys (CRRC, NSS)
  • 5. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Sample Questions Sample Questions How tax evasion varies with frequency of bribes to tax officials? How likely are the individuals in one income group to move up, down, or remain in the same income group over time? How remittances influence spending on education? What is the pattern of educational assortative mating in Armenia? Do women marry up, down, or men with the same educational attainment? What is the return to education in Armenia (do wages rise with educational attainment)? How to measure income distribution using household surveys?
  • 6. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Firm-Level Data Business Environment and Enterprise Performance Survey (BEEPS) Examines the quality of the business environment Conducted by the EBRD and World Bank Surveys firms in 26 transition countries plus Turkey Rounds/number of surveyed firms: 1999/4,104; 2002/6,667; 2005/9,655 2005 Manufacturing Overlay: 1,713 enterprises in 7 countries Panel Component: 1,500 firms surveyed in both 2002 and 2005 Comparator Surveys in 2004: 3,300 enterprises in 7 non-transition economies Format: STATA and CSV http://www.ebrd.com/country/sector/econo/surveys/beeps.htm Also available at http://www.enterprisesurveys.org/ (Registration required)
  • 7. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Application of BEEPS How tax evasion varies with frequency of bribes to tax officials? Fraction of Sales Concealed by Frequency of Bribes to Tax Officials Variable Mean Std. Dev. N 1 Never 0.12 0.21 2,445 2 Seldom 0.21 0.25 763 3 Sometimes 0.21 0.24 729 4 Frequently 0.28 0.27 455 5 Usually 0.31 0.27 236 6 Always 0.31 0.28 181 7 Not Reported 0.18 0.28 288 Total 0.18 0.25 5,097 Missing – – 643 Source: Joulfaian, David, Bribes and Business Tax Evasion
  • 8. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Determinants of Tax Evasion Tobit estimates of Determinants of Tax Evasiona a Estimates control for industry, size and country. * Significant at the 5 percent level, ** at 10 percent level.
  • 9. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Individual-Level Data Life in Transition (LiTS) Provides insights into how transition has affected the lives of people (comprehensive assessment of relationships among life satisfaction and living standards, poverty and inequality, trust in state institutions, satisfaction with public services, attitudes to a market economy and democracy) Conducted by the EBRD and World Bank Covers 27 countries in transition plus Turkey and Mongolia Surveys 1,000 households in each country (29,000 in total) Retrospective questions about employment in the period between 1989 and 2006 Format: STATA and CSV http://www.ebrd.com/country/sector/econo/surveys/lits.htm
  • 10. Overview BEEPS LiTS Population Census Household Surveys Extra Slides LiTS: Income Mobility How likely are the individuals in one income group to move up, down, or remain in the same income group over time? Subjective ranking: income mobility between 1989 and 2006 2006 Quintiles 1989 Quintiles 1 2 3 4 5 All Individuals poorest 20% 26.7% 53.0% 16.9% 1.3% 2.1% 100% 267,362 2nd quintile 8.8% 27.7% 58.1% 5.4% 0.0% 100% 320,140 3rd quintile 10.5% 34.0% 44.0% 10.3% 1.2% 100% 506,791 4th quintile 11.5% 42.3% 41.0% 5.2% 0.0% 100% 720,929 richest 20% 18.5% 30.0% 36.6% 10.6% 4.3% 100% 229,474 All 13.6% 38.0% 40.8% 6.6% 1.1% 100% 2,044,696 Computed from the 2006 LiTS household survey (see data page of www.aea.am to download)
  • 11. Overview BEEPS LiTS Population Census Household Surveys Extra Slides LiTS: Remittances and Education Spending How remittances influence spending on education? Summary Statistics No Remittances With Remittances Variables of interest Mean Std Dev Mean Std Dev Education Expenditures 184 363 389 555 Health Expenditures 98 227 148 302 Male 71% 46% 55% 50% Age of Head 50 14 50 17 School age children 1.79 0.83 1.70 0.86 University education 17.8% 38.3% 25.3% 43.7% Post-graduate education 0.4% 6.0% 0.0% 0.0% Receive social benefits 20.2% 40.2% 9.9% 30.0% Gifts from locals 2.0% 13.9% 6.6% 25.0% Observations 461 91
  • 12. Overview BEEPS LiTS Population Census Household Surveys Extra Slides LiTS: Remittances and Education Spending Dependent variable: Education expenditures Specification: OLS Variables Coefficient s.e. t-statistic Remittances 243.21* 57.06 4.26 Remittances most important -155.52** 81.20 -1.92 Male head -13.65 36.78 -0.37 Age – head -1.09 6.90 -0.16 Age squared 0.00 0.06 -0.05 Head education – university 186.43* 42.37 4.40 Head education – post-graduate 1396.56* 270.195 5.17 Head unemployed -47.45 122.00 -0.39 Receive social benefits -157.23* 42.70 -3.68 Receive transfers from charities -77.96 171.51 -0.45 Receive gifts from locals 40.85 100.82 0.41 Constant 250.14 168.42 1.49 Observations 552 * Significant at the 5 percent level, ** at 10 percent level.
  • 13. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Individual-Level Data Population Census Integrated Public Use Microdata Series International (IPUMS-International) Free access to census microdata for 44 countries 2001 Armenian Population Census: 10% sample Universe: 81,929 households, 326,560 individuals Format: fixed-format ASCII, supported by STATA, SAS and SPSS https://international.ipums.org/international (Registration required)
  • 14. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Educational Assortative Mating Definition: Positive (negative) assortative mating on a characteristic means that individuals tend to match with partners who are similar (dissimilar) with respect to that characteristic. Do the Armenian women marry up, down, or men with the same educational attainment? How these choices change across different age cohorts and how differences in age, among others, influence the choices made? Data: 2001 Armenian Population Census Restricted to women born between 1921 and 1970: 46,653 couples Observe age, educational attainment, province or region of residence Measures of educational attainment 1 up to 3 years of primary education 2 lower secondary or 4-8 years 3 higher secondary 4 professional 5 university graduate
  • 15. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Descriptive Statistics Source: Hakobyan, Shushanik and David Joulfaian, Educational Assortative Mating in Armenia
  • 16. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Educational attainment of partners by female birth cohorts
  • 17. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Ordered Probit Estimates of Choices Estimates control for region fixed effects.
  • 18. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Individual-Level Data Household Surveys NSS Household Surveys not publicly available surveys approximately 4000 households CRRC Data Initiative
  • 19. Overview BEEPS LiTS Population Census Household Surveys Extra Slides 2003 NSS Household Survey What is the return to education in Armenia? Summary Statistics: 2003 Monthly Salary by Education Level (in Drams) Education Number of Obs Avg monthly wage Std Dev Less than Secondary 86 26167 20580 Secondary 585 29992 24669 Secondary Special 781 25781 24119 Less than High 24 34534 28577 High Education 810 34758 92064 Total 2286 30146 59302 Restricted to ages 25 to 60 and those who report monthly compensation only
  • 20. Overview BEEPS LiTS Population Census Household Surveys Extra Slides OLS: Return to Education w i = β 0 + β 1 Age + β 2 Age 2 + β 3 Second + β 4 Secspec + i i i i + β 5 Lesshigh + β 6 High + β 7 Female + ε i i i i All Women only Men only Variable Coef. t-stat Coef. t-stat Coef. t-stat Age 2338** 1.82 485 0.49 3502 1.47 Age squared -27** -1.77 -6 -0.94 -41 -1.44 Secondary 5494 0.82 5148** 1.69 5016 0.44 Secondary Special 4525 0.68 1981 0.97 4730 0.42 Less than High 12826 0.95 7122 0.67 16080 0.63 High Education 13135* 1.98 5387 1.37 18758** 1.66 Female -22051* -8.96 Constant -14828 -0.56 5172** 1.81 -40109 -0.81
  • 21. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Income Measures Definitions of income based on Luxembourg Income Studies (LIS - http://www.lisproject.org/) Market Income (MI): gross salaries/wages, self-employment income, property income, pensions Gross Income (GI): MI plus old-age and survivors benefits, sickness benefits, disability benefits, child benefits, unemployment compensation benefits, maternity benefits, military benefits, social insurance, social assistance, near-cash benefits (housing), alimony/child support, private transfers, scholarship, other income Net Disposable Income (DPI): GI minus income taxes, mandatory employee contributions, mandatory contributions for self-employment
  • 22. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Income Distribution Highly skewed distribution Market Income Distribution 40 30 Percent 2010 0 0 100000 200000 300000 Household Market Income
  • 23. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Lorenz Curve and Gini Coefficient Lorenz curve of market income Stata command: glcurve varname, lorenz Gini coefficient of market income = 0.52 Stata command: ineqdeco varname
  • 24. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Computing Income Deciles Sections used: Diary of income, Education, Monetary and Commodity Flows between Households Time unit: month Currency consistency: convert dollars and rubles into drams Unit of observation: Individual Stata command xtile newvar = varname, n(10) tab newvar, summ(varname) Market Income per capita Gross Income per capita Deciles Mean Std Dev Mean Std Dev 1 0 0 203.57 340.69 2 730.19 185.24 1819.80 478.10 3 1558.42 384.50 3458.48 461.78 4 3194.01 533.58 5236.65 513.76 5 4977.41 453.64 6799.48 466.63 6 6343.55 379.53 8483.87 581.32 7 8101.41 661.70 10562.37 640.52 8 10898.31 964.11 13365.54 982.29 9 15109.87 1634.80 17719.36 1596.65 10 29160.64 12751.66 33421.15 16059.51
  • 25. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Thank you! For questions, please email sh9db@virginia.edu.
  • 26. Overview BEEPS LiTS Population Census Household Surveys Extra Slides Tobit: Marginal Effects where λ is inverse Mills ratio.