#1Bosna i Hercegovina Agencija za statistiku Bosne i Hercegovine ******* Bosna i Hercegovina Agencija za statistiku Bosne i Hercegovine An Overview of Poverty Measurement in Bosnia and Herzegovina Edin Šabanović, Assistant Director Sector for Statistical Methodology, Standards, Planning, Quality and Coordination Agency for Statistics of Bosnia and Herzegovina Expert Meeting on Measuring Poverty and Inequality Vienna, Austria, 29-30 November 2018#2Content Background Methodology of poverty measurement in Bosnia and Herzegovina Recent efforts in harmonizing poverty methodology Conclusions and future steps 2#3Background (1) Poverty is still one of the most pervasive problems in the overall human development • Millions of people live in extreme poverty, i.e. with less than the international poverty line of US$1.90 a day or making just a little more than this amount • SDGs 2030 treat this problem within SDG 1-No poverty 3#4Background (2) • There are two main methodological issues defining poverty assessment methods: (i) which monetary measure of well-being is used: consumption expenditure or income, and (ii) which poverty line is used: absolute or relative? • There is also a question about the survey used for data collection 4#5Methodology of poverty measurement in Bosnia and Herzegovina (1) First poverty assessments in Bosnia and Herzegovina were made in 2001 and 2004 within the Living Standards Measurement Survey (LSMS) Survey instruments consisted of following modules: M1: Roster of household members; M8: Migration; M2: Housing; M3: Education; M4: Health; M5: Labor; M9: Social assistance; M10: End of first visit; M11: HH`d consumption; M12: Non-agricultural household business M6: Credit; M7: Voucher/Certificate; M13: Agricultural activit. 5#6Methodology of poverty measurement in Bosnia and Herzegovina (2) World Bank methodology of absolute poverty was applied Consumption expenditure was used as a monetary measure of poverty Following poverty and inequality indicators were produced: (i) Head Count; (ii) Poverty Gap; (iii) Severity of Poverty; (iv) Shortfall. a) Gini coefficient; b) Gini coefficient using OECD scale; c) Theil index; d) Entropy index; e) S90/S10; f) S50/S10; g) S90/S50. 6#7Methodology of poverty measurement in Bosnia and Herzegovina (3) The majority of poverty and inequality indicators were disaggregated by: regions (Bosnian entities); type of location (urban, rural and mixed); age; war displacement status; education of the head of household; employment status of the head of household; employment status of adults and household size. 7#8Methodology of poverty measurement in Bosnia and Herzegovina (4) Since 2004, Household Budget Survey (HBS) was designed for measuring poverty European methodology of relative poverty was applied Consumption expenditure of households by COICOP was used as a monetary measure of well-being Three survey instruments were used for data collection: a) Diary of purchase; b) Self-consumption diary; c) Final interview. 8#9Methodology of poverty measurement in Bosnia and Herzegovina (5) Following poverty and inequality indicators were calculated: (i) Poverty incidence at household level; (ii) Poverty incidence at individual level; (iii) Poverty gap. a) Gini coefficient b) S80/S20. HBS was conducted four times: 2004, 2007, 2011 and 2015 6#10Methodology of poverty measurement in Bosnia and Herzegovina (6) The majority of these indicators were disaggregated by: regions (Bosnian entities and Brcko district BiH); type of location (urban, rural); type of households; size of households; age of the head of household; sex of the head of household; education of the head of household; employment status of the head of household; age of household members; sex of household members. 10 10#11Recent efforts in harmonizing poverty methodology (1) Strategic orientation to the harmonization of statistical methodologies to European standards and regulations Two pilot EU-SILC in 2015-2017 Income as monetary measure of poverty EU methodology of relative poverty (60% of national median household equalized income) and modified OECD scale Survey instruments designed for data collection: a) Household questionnaire and b) Household member questionnaire. 11 11#12Recent efforts in harmonizing poverty methodology (2) The design of pilot ILC surveys allowed the calculation of following poverty and inequality indicators: (i) At-risk-of-poverty rate; coefficient; (ii) At-risk-of-poverty rate before social transfers; (iii) Relative at-risk-of-poverty gap; (iv) People at-risk-of-poverty or social exclusion; (v) Persistent at-risk-of-poverty rate (in future). a) Gini coefficient; b) b) S80/s20. 12 12#13Recent efforts in harmonizing poverty methodology (3) The majority of these indicators can be disaggregated by: regions (Bosnian entities and Brcko district BiH); type of location (urban, rural); type of household; size of household; work intensity of household; tenure status; age of household members; sex of household members; • education of household members; employment status of household members; disability; receipt of social transfers. 13#14Conclusions and future steps Evident methodological improvement was done in order to introduce and to standardize the poverty measurement in B&H There is still a lot of room for improvements, especially regarding following issues: (i) master sample on the basis of 2013 Population census results; (ii) full-scale EU-SILC in 2019/2020; (iii) increasing the quality of income data; (iv) methodological and software support in data editing and imputations phases; (v) assistance in net-gross conversion of EU-SILC income variables; (vi) assistance in calculation of cross-sectional and longitudinal weights and standard errors of survey estimates; (vii) support in production of complex social indicators; (viii) adequate software support is needed (SAS).#15Thank you for the attention! Edin Šabanović [email protected]