POVERTY MEASUREMENT AND METODOLOGY OF HOUSEHOLD BUDGET SURVEY IN

AZERBAIJAN

Yashar PASHA

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Demographical situation Territory – 86,6 square km; Number of population – 9356500; Number of households – 1895941 Average size of households – 4,7 Population density – 96; (per 1 km2) urban population – 54 per cent; rural population – 46 per cent; men – 49 per cent; women – 51 per cent;Population by age group: 0-14 years – 26 per cent; 15-64 years – 67 per cent; 65 years and older – 7 per cent;

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Demographical situation

Per 1000 person of population:births rate – 16;deaths rate – 6;natural increase – 10;marriages – 8;divorces – 1; Per 1000 of born:infant mortalitychildren up to 12 months – 10children up to 5 years – 15;maternal mortality – 26(for 10000 of born)

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Demographical situation

Literacy – 98.8%;men – 99.5%;women – 98.2% Life expectancy – 72.4 yearsfor men – 69.6 yearsfor women – 75.2 years Number of refugees&IDPs – 1 million

persons; Capital – Baku citynumber of resident population– 1 million 855 thousands persons

Definition of poverty and social exclusions adopted by the Council of Europe in 1984:“…poor are those persons, families and groups of

persons whose resources (material, cultural and social) are so limited as to exclude them from the minimum acceptable way of life in the state to which they belong…”

Definition of poverty adopted in Azerbaijan in 2001:

“Poverty is an impossibility due to a lack of funds to keep up to the living style inherent in a specific society in a specific period of time”

Approaches to defining poverty criteria

Most researchers recognize that a combined use of several different approaches is the most effective way to measure such a complex and multifaceted phenomenon as poverty.

Monetary Non-monetary

Relative Absolute

Income-based Consumption-based

Objective Subjective

Approaches to defining a poverty line for international comparisons

monetary – minimum funds required for survival, per day

consumption-based – minimum dietary energy intake or quantity of microelements in daily food consumption

structural – maximum percentage of household expenditures for food in the total household expenditures

relative criteria

deprivations

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Sampling Procedure for HBS

Used territorially-random sampling For sample uses three-stage probability sampling

with preliminary stratification. The population census data were gathered using the following administrative units: the population census districts, supervisor site and enumerator unit. The census districts are used as the primary sampling units (PSUs), with the population census supervisor areas as the secondary sampling units (SSUs), and with households as the ultimate sampling units

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Sampling Procedure for HBS

Data from the 2009 population census had been entered and stored by following structure: code of districts and census district, supervisor site, enumerator unit, surname, name head of households, number of person, full address and mail index

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Sampling Procedure for HBS

The secondary sampling units were formed using maps of the population census territories, the population census data on number of households living within each of these territories. Within each primary sampling unit in rural areas selected at the first stage, one secondary sampling unit per interviewer was selected, using systematic probability proportional to size sampling. In order to spread out to a greater extent the sample within each primary sampling unit of urban areas, two secondary sampling units per interviewer were selected using systematic probability proportional to size sampling.

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Second stage sampling As a rule the population census supervisors’

areas were used as the secondary sampling units. Nevertheless some of population census supervisors’ areas were too spread out. For such territories each secondary sampling unit was formed using the population census maps as a amalgamation of some of population census enumerator areas. Thus more compact secondary sampling territories were created. The total number of secondary sampling units formed within 125 selected primary sampling units was equal to 493

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Sampling of households

Selection of households for each interviewer is carried out within sampled secondary units using simple random sampling. Each interviewer every week approaches 2 households for the 2 weeks’ diary period. Thus the number of sampled households for each interviewer within one quarter is equal to 26. 13 different weeks. Since every household participates in the survey only during a one-quarter period the annual sample size for each interviewer is equal to 104 households.

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Starting from January of 2008 quarterly panel survey

I quarter 4250 households II quarter 4250 households III quarter 4250 households IV quarter 4250 households In annual data base 4250 households and

18000 individuals

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Survey Questionnaires: Questionnaire for main interview. (is filled in thebeginning of survey for every household); Expenses journal. (is filled by every householdduring 2 weeks of a quarter); Quarter questionnaire of incomes andexpenses. (is filled at the end of survey for everyhousehold by all persons involved). Instruction for a quarter questionnaire. (utilizedwhile a quarter questionnaire of incomes andexpenses is being filled);

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By types of households By education, sex, age, employment, socialstatus of a household.s head By decile and quintil groups of population By level of income and expenses of familieswith/without children

Received Results are Grouped:

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Structure of average per capita incomes

Total income 100

Employment incomes 31.2

Self-employment incomes 22.6

Agricultural incomes 15.7

Rent incomes 1.5

Natural social transfers 0.4

Hardship allowances 10.1

Pensions 1.1

Property incomes 1.1

Other types of incomes 16.3

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Assessment of the total of monetary incomesby quintil groups of population

I quintil 12.4 % II quintil 16.0 % III quintil 18.6 % IV quintil 21.6 % V quintil 31.4 % The disparity between 10% of the most and

the least wealthy groups of population is 3.3

times

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Ration of Refugee and IDP childrens

8.3 % of refugees. children agedbetween 12 months and 6 years areconsidered as underfed. In this category children of 5 years havethe highest percentage of children withinsufficient weight,boys . 10.7 %,girls . 7.5 %

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Energy of Foodstuff

Total Men Women

Energy, kcal2393 2378 2399

Including animal-origin 441 438 453

Proteins, grams 74 73 75

Including animal-origin 26 26 26

Fat, grams 64 63 67

Including animal-origin 35 34 35

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Poverty Level, 2012

Absolute poverty – 137 $(consumers expenditure median) is based in the size of a minimum consumptionbasket that includes 2400 kcal per day specific gravity of foodstuff in a minimumconsumption basket is equal to 59 % Relative poverty – 78 $(60 % of consumers expenditure median per capita) defines poverty level in the poorest groups ofpopulation

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Poverty line

The Law on living wage (minimum consumption budget) was adopted by Cabinet of the Ministers in 2005 according to which per capita  basket of goods per year is calculated by normative-statistical method as well as by able-bodied population, pensioners, and children under 15 years old.

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2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

0

20

40

60

80

100

120

140

Poverty line and poverty level in 2001-2012 year

Poverty line, AZN Poverty level, in per cent

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Consumption Expenditure StructureTotal 100

Foodstuff 43,2Alcohol and tobacco 0,5Clothing and footwear 1,0Rent, domestic gas, electric power, etc. 6,8Furniture, current repairs, etc. 7,4Healthcare 8,4Transport 4,6Communications 6,1Recreation and culture 3,0Education 4,1Restaurants, café, etc. 1,9Other goods and services 8,5

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Consumption of food products by main products groups, annual, kg.

Bread and bakery products 144,3Potatoes 63,1

Vegetables & market gardens 98,5Meat and meat products 33,5Fish and fishery 7,1

Milk and dairy products 294,4Eggs, piece 155,0Fruit and berries 74,8Sugar and confectionery 31,7Vegetable oil and margarine 9,9

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Chemical structure, calories of consumed foods, per

capita, per day. Total Urban Rural

Protein, gram 75,0 71,9 78,4

Animal protein, gram 25,8 24,5 27,2

Fat, gram 66,5 66,1 67,0

Animal fat, gram 37,3 36,8 37,9

Carbohydrate, gram 460,2 428,2 496,5

Animal carbohydrate, gram 5,4 4,1 6,9

Kilocalories, kcal 2424,6 2399,7 2488,6

Animal kilocalories, kcal 463,7 448,8 480,6

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Thanks!

www.stat.gov.az

yashar@azstat.org