The Sources and Uses of Survey Data on Armenia

Overview BEEPS LiTS Population Census Household Surveys Extra Slides

The Sources and Uses of Survey Data onArmenia

Shushanik Hakobyan

University of Virginia

September 18, 2009


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


Types of Micro Data

Unit of observationA firmAn individual

Data structureCross-section data: Observations on a set of variables in agiven period, t, for individual units i=1,2,. . . ,n.Independent cross-sections => Pooled dataPanel (or longitudinal) data


Micro Data on Armenia

Firm-level dataBusiness Environment and Enterprise Performance Survey(BEEPS)

Individual-level dataLife in Transition Survey (LiTS)Population CensusHousehold Surveys (CRRC, NSS)


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 inArmenia? Do women marry up, down, or men with the sameeducational attainment?What is the return to education in Armenia (do wages rise witheducational attainment)?How to measure income distribution using household surveys?


Firm-Level Data

Business Environment and Enterprise Performance Survey(BEEPS)

Examines the quality of the business environmentConducted by the EBRD and World BankSurveys firms in 26 transition countries plus TurkeyRounds/number of surveyed firms: 1999/4,104; 2002/6,667;2005/9,6552005 Manufacturing Overlay: 1,713 enterprises in 7 countriesPanel Component: 1,500 firms surveyed in both 2002 and 2005Comparator Surveys in 2004: 3,300 enterprises in 7non-transition economiesFormat: STATA and CSVhttp://www.ebrd.com/country/sector/econo/surveys/beeps.htm

Also available at http://www.enterprisesurveys.org/ (Registrationrequired)


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 2,4452 Seldom 0.21 0.25 7633 Sometimes 0.21 0.24 7294 Frequently 0.28 0.27 4555 Usually 0.31 0.27 2366 Always 0.31 0.28 1817 Not Reported 0.18 0.28 288

Total 0.18 0.25 5,097Missing – – 643

Source: Joulfaian, David, Bribes and Business Tax Evasion


Determinants of Tax EvasionTobit estimates of Determinants of Tax Evasiona

aEstimates control for industry, size and country.

* Significant at the 5 percent level, ** at 10 percent level.


Individual-Level Data

Life in Transition (LiTS)Provides insights into how transition has affected the lives ofpeople (comprehensive assessment of relationships among lifesatisfaction and living standards, poverty and inequality, trust instate institutions, satisfaction with public services, attitudes to amarket economy and democracy)Conducted by the EBRD and World BankCovers 27 countries in transition plus Turkey and MongoliaSurveys 1,000 households in each country (29,000 in total)Retrospective questions about employment in the periodbetween 1989 and 2006Format: STATA and CSVhttp://www.ebrd.com/country/sector/econo/surveys/lits.htm


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)


LiTS: Remittances and Education Spending

How remittances influence spending on education?

Summary StatisticsNo 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


LiTS: Remittances and Education Spending

Dependent variable: Education expendituresSpecification: 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.



Population Census

Integrated Public Use Microdata Series International(IPUMS-International)Free access to census microdata for 44 countries2001 Armenian Population Census: 10% sampleUniverse: 81,929 households, 326,560 individualsFormat: fixed-format ASCII, supported by STATA, SAS andSPSShttps://international.ipums.org/international (Registrationrequired)


Educational Assortative Mating

Definition: Positive (negative) assortative mating on a characteristicmeans 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 sameeducational attainment? How these choices change across different agecohorts and how differences in age, among others, influence the choicesmade?

Data: 2001 Armenian Population Census

Restricted to women born between 1921 and 1970: 46,653 couplesObserve age, educational attainment, province or region ofresidenceMeasures of educational attainment

1 up to 3 years of primary education2 lower secondary or 4-8 years3 higher secondary4 professional5 university graduate


Descriptive Statistics

Source: Hakobyan, Shushanik and David Joulfaian, Educational Assortative Mating in Armenia


Educational attainment of partners by female birth cohorts


Ordered Probit Estimates of Choices

Estimates control for region fixed effects.



Household Surveys

NSS Household Surveys

not publicly availablesurveys approximately 4000 households

CRRC Data Initiative


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


OLS: Return to Education

wi = β0 + β1Agei + β2Age2

i+ β3Secondi + β4Secspeci+

+β5Lesshighi + β6Highi + β7Femalei + ε 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


Income Measures

Definitions of income based on Luxembourg Income Studies(LIS - http://www.lisproject.org/)

Market Income (MI): gross salaries/wages, self-employmentincome, property income, pensionsGross 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-cashbenefits (housing), alimony/child support, private transfers,scholarship, other incomeNet Disposable Income (DPI): GI minus income taxes,mandatory employee contributions, mandatory contributionsfor self-employment


Income Distribution

Highly skewed distribution0

1020

3040

Per

cent

0 100000 200000 300000Household Market Income

Market Income Distribution


Lorenz Curve and Gini Coefficient

Lorenz curve of market incomeStata command: glcurve varname, lorenz

Gini coefficient of market income = 0.52Stata command: ineqdeco varname


Computing Income DecilesSections used: Diary of income, Education, Monetary and Commodity Flowsbetween HouseholdsTime unit: monthCurrency consistency: convert dollars and rubles into dramsUnit of observation: IndividualStata 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


Thank you!For questions, please email

[email protected].


Tobit: Marginal Effects

where λ is inverse Mills ratio.

The Sources and Uses of Survey Data on Armenia

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