How to use ADePT for Social Protection Analysis

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1 How to use ADePT for Social Protection Analysis Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Social Safety Nets Core Course Washington D.C. - April 25 May 6, 2016 d

2 INPUTS OUTPUTS Household Survey Data Dataset in STATA or SPSS Variables needed (mandatory): Household ID Location (urban and rural) Household weights Household size Welfare aggregate (total household consumption or income) Poverty line Social Protection programs o Social Insurance o Social Assistance o Labor Market Programs Excel Tables with indicators Coverage Coverage Program duplication and overlap Targeting Distribution of beneficiaries Distribution of benefits Benefit Level Average per capita transfer Generosity/Adequacy Impact on poverty and inequality Poverty headcount, poverty gap, gini reduction Cost-Benefit ratio Plus: statistics, profiles, demographics, charts

3 Key Indicators for Analysis Coverage Coverage Program duplication and overlap Targeting Distribution of beneficiaries Distribution of benefits Benefit Level Average per capita transfer Generosity/Adequacy Impact on poverty and inequality Poverty headcount, poverty gap, Gini reduction Cost-Benefit ratio

4 Coverage It is the percentage of the population that benefits from a program Coverage = Number of beneficiaries in the total population (or group ) Total population (or group) Group refers to subsamples of the population, i.e.: income groups (quintiles, deciles, poor, non poor), geographical groups (rural vs urban), gender groups (male vs. female), employed, etc.

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6 Coverage Questions 1. Which type of social protection program has the highest coverage of the total population? A) Contributory pensions B) Active labor market programs C) Food and in-kind transfers D) Cash transfers (conditional and non-conditional)

7 Which type of social protection program has the highest coverage of the total population? 65% A) Contributory pensions B) Active labor market programs C) Food and in-kind transfers D) Cash transfers (conditional and non-conditional) 10% 0% 25% Contributory pensions Active labor market pr... Food and in-kind transfers Cash transfers (conditio...

8 Questions Coverage 1. How many people in the lowest quintile are covered by the conditional cash transfers? A) 93% B) 19% C) 41% D) 88%

9 How many people in the lowest quintile are covered by the conditional cash transfers? A. 93% B. 19% C. 41% D. 88% 0% 0% 0% 0% 93% 19% 41% 88%

10 Questions Coverage 1. Which type of SSN programs has the highest coverage of the poorest quintile in Chile? A) Undonditional Cash transfers (allowances) B) Conditional cash transfers C) Social pensions D) School feeding E) Food and in kind transfers

11 Which type of SSN programs has the highest coverage of the poorest quintile in Chile? A. Undonditional Cash transfers (allowances) 85% B. Conditional cash transfers C. Social pensions D. School feeding E. Food and in kind transfers 7% 4% 0% 4% Undonditional Cash trans... Conditional cash transfers Social pensions School feeding Food and in kind transfers

12 Program Overlap It is the share of households receiving 2 or more programs

13 Distribution of Beneficiaries (Beneficiary Incidence) It is the proportion of beneficiaries in a group* (with respect to total beneficiaries) Beneficiarie incidence = Number of beneficiaries in a group Total number of beneficiaries in the program Group refers to subsamples of the beneficiaries that belong to specific groups, i.e.: income groups (quintiles, deciles, poor, non poor), geographical groups (rural vs urban), gender groups (male vs. female), etc.

14 Distribution of Benefits (Benefits incidence) It is the proportion of benefits received by a group Benefits incidence = Amount of benefits received by a group Program total benefits

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16 Beneficiary incidence Questions 1. What proportion of the total beneficiaries of social protection belongs to the poorest quintile? A) 21.9% B) 16.1% C) 19.4% D) 25.2%

17 What proportion of the total beneficiaries of social protection belongs to the poorest quintile? A. 21.9% B. 16.1% C. 19.4% D. 25.2% 70% 13% 13% 3% 21.9% 16.1% 19.4% 25.2%

18 Average per capita transfer Average per capita transfer received from a program PC Transfer = Total transfer received Household size

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20 Generosity of Benefits (Adequacy) It is the share of the transfers with respect to total consumption or income of a group Total Income Generosity = Amount of transfers received by a group Total income or consumption of the beneficiaries in the group

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22 Program Impact The incidence of benefits and beneficiaries, along with the generosity of benefits, determine the impact of a program terms of: Poverty headcount reduction Poverty gap reduction Inequality reduction (Gini)

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24 Benefit- Cost Analysis It is the poverty gap reduction in $ for each $1 spent in the social program Benefit Cost Analysis = Poverty Gap without transfer Poverty gap with transfer Total amount spent in the program

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27 Coverage Questions 2. What percentage of the population in the poorest quintile is covered by cash transfers and allowances? A) 49.7% B) 38.2% C) 20.1%

28 What percentage of the population in the poorest quintile is covered by cash transfers and allowances? A. 49.7% B. 38.2% C. 20.1% 0% 0% 0% 49.7% 38.2% 20.1%

29 Beneficiary incidence Questions 1. What proportion of the total beneficiaries of social protection belongs to the poorest quintile? A) 21.9% B) 16.1% C) 19.4%

30 What proportion of the total beneficiaries of social protection belongs to the poorest quintile? A. 21.9% B. 16.1% C. 19.4% 0% 0% 0% 21.9% 16.1% 19.4%

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32 Beneficiary incidence Questions 2. What proportion of the total beneficiaries of non-contributory scoail pensions belongs to the richest quintile? A) 25.2% B) 18.0% C) 15.3% D) 8.3%

33 2. What proportion of the total beneficiaries of noncontributory scoail pensions belongs to the richest quintile? A. 25.2% B. 18.0% C. 15.3% D. 8.3% 0% 0% 0% 0% 25.2% 18.0% 15.3% 8.3%

34 Questions Adequacy 1. What is the share of contributory pensions with respect to the total income of the poorest quintile? A) 37.0% B) 44.0% C) 31.8%

35 What is the share of contributory pensions with respect to the total income of the poorest quintile? A. 37.0% B. 44.0% C. 31.8% 94% 0% 6% 37.0% 44.0% 31.8%

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37 Questions Adequacy 2. What is the share of noncontributory pensions with respect to the total income of the beneficiaries in the poorest quintile? A) 14.6% B) 46.5% C) 37.0%

38 2. What is the share of non-contributory pensions with respect to the total income of the beneficiaries in the poorest quintile? A. 14.6% B. 46.5% C. 37.0% 78% 11% 11% 14.6% 46.5% 37.0%

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40 ADePT Training If your country office is interested in a training on ADEPT Social Protection and/or Poverty (1/2 day to 3 day courses) Please contact: Ruslan Yemtsov ryemstov@worldbank.org Claudia Rodríguez crodriguezalas@worldbank.org Brooks Evans bevans2@worldbank.org THANK YOU!

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