THE COMPILATION OF HOUSEHOLD SECTOR ACCOUNTS IN KOREA

Transcription

1 For Official Use STD/NA()18 Organisation de Coopération et de Développement Economiques OLIS : 26-Aug-1 Organisation for Economic Co-operation and Development Dist. : 27-Aug-1 Or. Eng. STATISTICS DIRECTORATE STD/NA()18 Or. Eng. For Official Use National Accounts THE COMPILATION OF HOUSEHOLD SECTOR ACCOUNTS IN KOREA Agenda item 1 NSO, Korea OECD MEETING OF NATIONAL ACCOUNTS EXPERTS Chateâu de la Muette, Paris September 1 Beginning at.30 a.m. on the first day 8071 Document complet disponible sur OLIS dans son format d origine Complete document available on OLIS in its original format

2 THE COMPILATION OF HOUSEHOLD SECTOR ACCOUNTS IN KOREA By Kwon-Soon Moon and Eunsoo Lee, NSO of Korea 1 Introduction 1. One of the advantages of 13 SNA is the introduction of the satellite s for certain limitations which may not easily be accommodated directly in the central framework due to complexities or contradiction. The environmental s or the human resource s (HRA) are examples of satellite s. The latter is an integrated economic and socio-demographic for households that is an extension of the existing national s based on the idea set out for satellite ing in the 13 SNA. The ing framework offered for such analysis is built around the household sector s of the 13 SNA with so-called human resource s extensions in which social dimensions of the household sector are incorporated also. 2. The objective of this paper is to compile household sector s and human resource s for Korea (KORHRA) from 10 and 15. The household sector includes all economic data that are needed to analyse the impact of household and individual behaviour and policies of government to affect socio-demographic dimensions of the population. By properly classifying the household sector by sub-sectors, it would thus be possible to identify within each of the groupings the changes in the economic and socio-demographic dynamics and in the economic responses. The direct means through which the households affect their socio-demographic conditions is through consumption expenditures. These expenditures constitute the direct household response to socio-economic concerns. Thus, expenditures on education affect the quality of education available in the population. 3. Integrated satellite ing may focus on social concerns that describe the quality of life in terms of education, health or housing and living conditions. The present KORHRA is designed for socioeconomic studies of education so that the development of KORHRA would allow policymakers to do more efficient analysis of economic and socio-demographic impact of educational investment. This orientation can always be extended to other issues such as employment, poverty, etc. 4. The ing framework of KORHRA is presented in the next section. Section 3 describes the methodologies for compilation of KORHRA. It then discusses in section 4 preliminary results and their analyses. Attached as annexes are the KORHRA data sources (Table 2), compilation methodologies (Table 3), and finally presentations of the s (Table 4). 1. Kwon-Soon Moon / Eunsoo Lee, National Statistical Office, Statistical Analysis Division #20 Dunsan-dong, Seo-gu, Taejon , Korea 2

3 Accounting Framework of KORHRA 5. The ing framework of the KORHRA is directly related to the 13 SNA dealing with the household sector, but includes satellite extensions on education. The Accounts is the breakdown of the current of household sector in the SNA by social classes and industrial groups. This includes all household sector s from production through income and use of income s. This segment of KORHRA would allow analysis of the spending patterns of different social classes of households, and juxtapose those with the sources of revenues of each household class (mixed income from own production, compensation of employees from employment, property income and social transfers including social transfers in kind), and show the extent of saving or borrowing of each household class. 6. The production and generation of income s cover the output; intermediate cost and value added data of small-scale industries and agricultural units that are managed by household sector. The scope of the household production units is assumed to include those with four or fewer employees. This cut-off point is used, as it coincides with the scope of some of the surveys and in other instances with distinctions made in the surveys. Although not ideal, this distinction may come as close as possible in identifying production units that are fully integrated with the households in their income and financial management. There is no ultimate guarantee for this and thus some larger household units fully integrated with the household sector in this manner may be omitted, while some other establishments are units of larger corporations. The size criterion was thought, however, to be closer to the SNA distinction between unincorporated household production units, and production units that form part of corporate and quasi-corporate enterprises. The income generated for the household sector is obtained from value added after deduction of compensation of employees paid to workers employed by the household production units. What remains is called mixed income as it is a mixture between labour income and entrepreneurial that is received by households. 7. The distribution of income and use of income s include current revenues and expenditures of household. They cover on the revenue side four types of revenues, i.e., mixed income from their own production units, compensation of employees received, property income, social security and other current transfers received from government and non-profit institutions serving households (NPISHs). On the expenditure side of the main item is final consumption and furthermore households pay property income and current transfers mostly in the form of premiums for social security schemes. The KORHRA scheme includes two alternate consumption items, i.e., final consumption expenditure and actual final consumption. The former includes only the expenditures by households on final consumption products while the latter includes in addition that which is paid for by government and NPISHs. The latter are matched by social transfers in kind that the households receive from government and NPISHs. The final item is saving which is the difference between the current revenues and expenditures. 8. A number of deviations from SNA concepts should be noted in this satellite scheme. The first one concerns the concept of actual final consumption of households, which is only partially identified in the table. By adding the of which items of final consumption expenditures on education by households, government and NPISHs, actual final consumption expenditures of households are derived. By including this actual final consumption on education in the total of final consumption expenditures of households, total actual final consumption of households as defined in the SNA is only approximated, as it does not cover other individual consumption expenditures by government and NPISHs, for instance on health, poverty, etc., as these are not within the scope of KORHRA. Thus the KORHRA only includes in actual final consumption of households those expenditures by government and NPISHs that are within the focus of the investigation of KORHRA. On the other hand actual final consumption of households may include some collective expenses as long as 3

4 they correspond with the scope of the investigation. Therefore general administrative expenses of Ministry of Education are included, as they are relevant when measuring the effectiveness of economic policies toward education. The approximate concept of actual final consumption is identified in the lower part of the table, i.e., in the use of adjusted disposal income of households.. Another deviation from SNA concepts concerns expenditures by enterprises on education. In principle, final consumption expenditure of households should reflect all expenses by enterprises on education in support of their employees. This would be the case in practice, if enterprises pay educational expenses for employees to follow the courses in vocational schools, universities, etc., that are external to the enterprise. These expenses would normally be treated as part of compensation of employees and thus reflected in income of households as well as in their final consumption expenditures. Enterprises, however, may also have an internal training department, in which case the SNA is more ambiguous. If the courses given to their employees are of a general nature and clearly an extension of outside education, the expenditure for each student could be considered as wages and salaries in kind, but if these courses are close to on the job training, they should be treated as part of production cost of the enterprises. In practice, none of these internal costs of education may be identified separately because of statistical limitations. For the purpose of present KORHRA, this is not satisfactory, as such education in enterprises may be important and should be considered with educational efforts elsewhere. 10. To this economic core of the Economic Accounts is added another component, Socio-Demographic Accounts that are needed in an extended analysis of education in the KORHRA. Socio- Demographic Accounts contain social data on households that describe the educational quality of household members. They include data on the number of households and the number of working persons (15 years and older) and also data on student enrolment. Through appropriate classifications of these households and individuals, their educational characteristics are made explicit and through an analysis of changes over time, the social impact of policies reflected in the data of the Economic Accounts could be addressed. Compilation Methodologies 11. None of the data for separate industries are based on one survey only. Combinations of surveys are used to identify the household production units as is presented in Table 3. For the estimation of output produced by establishments, the reference information is the output data as they are compiled by NSO in the development of Gross Regional Domestic Product (GRDP) estimates. The general approach to compile output for the household sector is to multiply GRDP by the share of household establishments to total output or sales/revenues depending upon data availabilities. However, for the agriculture, forestry and fishing and the construction industries the residual approach are applied since production activities of household establishments for those industries are hardly identifiable in Korea. 12. As the survey data refer to sales instead of output, adjustments for changes in inventories have been applied to the survey data. The adjustments are based on the ratio between output and changes in inventories. Once the output data for household industries have been obtained in this manner, the GRDP structure for each industry has been used to estimate the household production data on value added and its complements, including compensation of employees, and mixed income/operating surplus. 4

5 Accounts and Their Analyses 13. As is the nature of a pilot study based on readily available data only, some of the figures compiled are tentative, requiring further refinement and coverage. The present analyses are thus in the nature of an illustration of how comprehensive data sets may be interpreted for possible policy use and monitoring. The Accounts shown in Table 4.1 give a picture of the current s of household sector in the SNA. Table 4.1 summarises expenditures by households and government on education as well as data on income of households from which those expenditures are made. In 15, disposable income is 238,71 billion and social transfers in kind on education are,240 billion as uses by government and 31 billion by NPISHs. They are received (10,171 billion) by households. Thus adjusted disposal income is 24,142 billion for households and actual final consumption is 187,220 billion. 27,116 billion out of 187,220 billion is actually invested on education in 15. These are the data reflecting economic responses of government policies and household behaviour, which have an impact on the educational quality of the population. 14. Table 4.2 shows absolute and relative terms of valued added by production units operated by household sector as well as by the whole economy in 10 and 15, and also the average annual growth rate between them. This table is based on an intermediate analysis of establishment survey data. In spite of limitations, Table 4.2 shows some interesting results. Producer units within household sector, which are unincorporated establishments with four or less workers, produced 80.7 trillion won value added which is about 21. per cent of GDP in 15. The agriculture and forestry and fishing industry shares the largest piece of total economy with 6.6 per cent and 84.1 per cent, respectively except for the private household with employed persons industries, which share 100 per cent. And the hotels and restaurants industries share 6.2 per cent. It has been also shown that the financial intermediation and electricity, gas, and water industries have almost no share in the household sector. On the other hand, the financial intermediation industries shows the highest growth rate between 10 and 15 among all groups of industries. 15. Table 4.3 presents annual income and expenditure for household sector, which is broken down by the educational level of the household head in 10 and 15. These include labour income (compensation of employees and mixed income) and percentage of disposal income (10: 2.4 per cent, 15: 2.7 per cent), final consumption expenditure as a percentage of disposal income (10: 70.5 per cent, 15: 74.1 per cent), final consumption expenditure on education as a percentage of final consumption expenditure (10: 8.1 per cent, 15:.6 per cent) and savings as a percentage of disposal income (10: 2.5 per cent, 15: 25. per cent). There are also average annual growth rates between 10 and 15 of disposal income, final consumption expenditure and savings, which are broken down by the educational levels. These growth rates are positively correlated with the levels of education except for the vocational colleges. The households with household heads having university or graduate school training show high growth rates whereas the rate decreases for households with household heads never attending schools. However, the growth rates of final consumption expenditure on education are rather equally distributed among the different educational levels. 5

6 Establishment surveys Household surveys Labour force surveys Table 2: Surveys used in the compilation of KORHRA Name of the surveys Years Periodicity 3, 4, Annual 5 Quinquennial 3 Annual 0-5 Annual 0-3 Annual 0-3 Annual 4 - Census on basic characteristics of establishments - Industrial census - Construction works survey - Wholesale and retail trade survey - Survey of services - Survey of wholesale and retail trade and service industry - Establishment census - Gross regional domestic product - Family income and expenditure survey - National survey of family income and expenditure - Farm household economy survey - Annual Report on the Economically Active Population Survey - Survey Report on Wage Structure Quinquennial Annual Annual Quinquennial Annual Annual 0-5 Annual - Population and housing census 0, 5 Quinquennial Demographic surveys Other - National Accounts - Statistical yearbook of education - Korean educational statistics at a glance Quinquennial Annual... 6

7 Table 3: Compilation methodologies for establishment surveys (1) Output for H H sector Industry Agriculture, forestry (A) and fishery (B) Methodology m Output for agriculture, forestry and fishery = GRDP output - (sales revenue + changes in inventories) of establishments owned by non-h h sector m GRDP output: yearly GRDP output for the agriculture, forestry and fishery sector m (Sales revenue + changes in inventories) of establishments owned by non-h h sector: - estimated by the 4 and 5 Census on Basic Characteristics of Establishments - for 4 and 5, use the sales revenue and inventories of the agriculture, forestry and fishery establishments (The establishments run by h h sector of the agriculture, forestry and fishery sectors are excluded in the Census on Basic Characteristics of Establishments) - for 0, 1, 2 and 3, (sales revenue + changes in inventories) in 4 * yearly GRDP output growth rates for the agriculture, forestry and fishery sector Mining and quarrying (C), manufacturing (D) m Output for manufacturing and mining = GRDP output * share of h h establishments for total output for the industrial census m GRDP output: yearly GRDP output for the manufacturing and mining sector. m Share of h h establishments for the total output for the industrial census output of establishments with 4 or less workers = total of output of all establishments from industrial census m Output of establishments with 4 or less workers: - for 3, output of establishments with 4 or less workers from 3 Industrial Census and Mining and Manufacturing Survey - for 0, 1, 2, 4, 5, output of establishments with 4 or less workers from 3 Industrial Census was extended by the growth rates of GRDP output for each year 7

8 Industry Electricity, gas and water (E) Methodology m Output for electricity, gas and water = GRDP output * h h establishments share of value of sales m GRDP output: yearly GRDP output for the electricity, gas and water sector. m h h establishments share of value of sales: - estimated by the 4 and 5 Census on Basic Characteristics of Establishments - for 4 and 5, value of sales for establishments with 4 or less workers = total of value of sales for all establishments: - for 0, 1, 2 and 3, output of establishments with 4 or less workers for 4 was extended by the growth rates of GRDP output for each year. Construction (F) m Output = GRDP output -output of non-h h sector. m GRDP output: yearly GRDP output for the construction sector. m Output of non-h h sector: - estimated by the yearly construction works survey ( 0-5) - the value of construction for company construction and other corporation Wholesale and retail trade (G) m Output for wholesale and retail trade = GRDP output * h h establishments share of value of (sales - purchase + changes in inventories) m GRDP output: yearly GRDP output for the wholesale and retail trade sector m h h establishments share of value of (sales - purchase + changes in inventories): - estimated by the 2, 3 and 4 Wholesale and retail trade survey - for 2, 3 and 4, value of (sales - purchase + inventories) for est. with 4 or less workers = value of (sales - purchase + inventories) for all establishments - for 0 and 1, output of establishment with 4 or less workers for 2 was extended by the growth rates of GRDP output for each year - for 5, output of establishment with 4 or less workers for 4 was extended by the growth rates of GRDP output 8

9 Industry Restaurants (H) Methodology m Output for restaurants = GRDP output * h h establishments share of value of (salespurchase+inventories) m GRDP output : yearly GRDP output for the restaurants sector m h h establishments share of value of (sales-purchase+inventories): - estimated by the 2 and 3 Wholesale and retail trade survey - for 2, 3 and 4, value of (sales - purchase + inventories) for est. with 4 or less workers = value of (sales - purchase + inventories) for all establishments - for 0 and 1, output of establishment with 4 or less workers for 2 was extended by the growth rates of GRDP output for each year - for 5, output of establishment with 4 or less workers for 4 was extended by the growth rates of GRDP output Hotels (H) m Output for hotels = GRDP output * h h establishment share of value of (sales+inventories) m GRDP output : yearly GRDP output for the hotels sector m h h establishments share of the value of (sales+inventories): - estimated by the 2 and 3 wholesale and retail trade survey - for 2, 3 and 4, value of (sales + inventories) for establishments with 4 or less workers = value of (sales + inventories) for all establishments - for 0 and 1, output of establishment with 4 or less workers for 2 was extended by the growth rates of GRDP output for each year - for 5, output of establishment with 4 or less workers for 4 was extended by the growth rates of GRDP output Transport, storages and communication (I) m Output for transport, storages and communication = GRDP output * h h establishments share of the value of sales m GRDP output: yearly GRDP output for the transport, storages and communication sector m h h establishments share of value of sales: - estimated by the 4 and 5 Census on Basic Characteristics of Establishments - for 4 and 5, value of sales for establishments with 4 or less workers = value of sales for all establishments - for 0, 1, 2 and 3, output of establishments with 4 or less workers for 4 was extended by the growth rates of GRDP output for each year

10 Industry Financial intermediation (J) Methodology m Output for financial intermediation = GRDP Output * h h establishments share of the value of sales m GRDP output: yearly GRDP output for the financial intermediation sector m h h establishments share of value of sales: - estimated by the 4 and 5 Census on Basic Characteristic of Establishments - for 4 and 5, value of sales for establishments with 4 or less workers = value of sales for all establishments - for 0, 1, 2 and 3, output of establishments with 4 or less workers for 4 was extended by the growth rates of GRDP output for each year Real estate, renting and business activities (K) m Output for real estate, renting and business activities (excluding residential housing) = GRDP output * h h establishments share of value of revenue m GRDP output: yearly GRDP output for the real estate, renting and business activities (excluding residential housing) Residential housing (K) Education (M), health and social work (N), other community, social and personal services (O) Housekeeping (P) m h h establishments share of value of revenue: - estimated by the 2, 3 and 4 Survey of Services value of revenue for establishments with 4 or less workers = value of revenue for all establishments - for 0 and 1, output of establishments with 4 or less workers for 2 was extended by the growth rates of GRDP output for each year - for 5, output of establishments with 4 or less workers for 4 was extended by the growth rates of GRDP output for each year m Output for residential housing = GRDP output for residential housing m Output for education(m), health and social work(n), community, social and personal services(o) = value of revenue for establishments with 4 or less workers - estimated by the 2 and 3 Survey of Services - for 0 and 1, output of establishments with 4 or less workers for 2 was extended by the growth rates of GRDP output for each year - for 4 and 5, output of establishments with 4 or less workers for 3 was extended by the growth rates of GRDP output for each year m Output for housekeeping = GRDP output for housekeeping (2) value added = output * ratio of value added to yearly GRDP by the industry (3) compensation of employees = value added * ratio of compensation of employees to yearly GRDP by the industry 10

11 (4) mixed income = value added * ratio of mixed income/operating surplus to yearly GRDP by the industry Table 4.1: Economic Accounts (unit: bill. won) Uses Accounts Production Generation of income Allocation of primary income Household sector Transactions and other flows, stocks and balancing items Resources Household sector Output 0, ,073 37,073 52,388 Intermediate consumption Accounts Production 53,67 80,685 Value added 53,67 80,685 Generation of income 15,212 22,048 Compensation of employees 31,670 4,582 Operating surplus/mixed income 83,86 171,842 31,670 4, ,1 Property income 1,121 2, ,78 221,08 Balance of Primary income 115,78 221,08 Secondary 4,62 13,306 Current transfers 14,334 31,17 distribution of income 125,16 238,71 Disposable income 125, ,71 1 Redistribution of income in kind Use of income 12,0 3 Social transfers in kind (on education) 4,742 10,171 from Government 4,253,240 from NPISHs ,142 Adjusted disposable 12,03 24,142 income 3, ,220 Actual final consumption 11,883 27,116 (Actual final consumption on education) 88,20 177,04 Final consumption expenditure 36,871 61,22 Saving Allocation of primary income Secondary distribution of income Redistribution of income in kind Use of income 11

12 Table 4.2 Value Added by Industries (unit: bill. won) Growth rate (%) ISIC Total economy Household (B) (A) % B/A (%) Total economy Household (B) (A) % B/A (%) Total economy Hous ehold Total 185,5 53, ,885 80, A. Agriculture, hunting and... 13,41 13, ,774 20, B. Fishing 1,656 1, ,706 2, C. Mining and quarrying , D. Manufacturing 54,1 1, ,02 3, E. Electricity, gas and water 3, , F. Construction 20,485 8, ,402 6, G. Wholesale, retail trade, repair... 21,170 10, ,718 15, H. Hotels and restaurants 2,221 1, ,376 3, I. Transport, storages and... 12, ,08 1, J. Financial intermediation, , K. Real estate, renting and... 21,16 13, ,75 24, L. Public administration... 7, , M. Education 7, ,578 1, N. Health and social work 2, , O. Other community... 5,167 1, ,286 2, P. Private households ,166 1,

13 Table 4.3: Annual Income and Expenditures by the educational level of household head (unit: bill.won) G r o w t h r a t e - Labour income (A) (A/F) - Compensation of employees (B) - Operating surplus /mixed income (C) - Property income(d) - Current transfer(e) - Disposable income (F=A+D+E) - Final consumption expenditure(g) (G/F) - Education(H) (H/G) - Saving(I) (I/F) - Labour income (A) (A/F) - Compensation of employees (B) - Operating surplus /mixed income (C) - Property income(d) - Current transfer(e) - Disposable income (F=A+D+E) - Final consumption expenditure(g) (G/F) - Education(H) (H/G) - Saving(I) (I/F) - Labour income (A) (A/F) - Compensation of employees (B) - Operating surplus /mixed income (C) - Property income(d) - Current transfer(e) - Disposable income (F=A+D+E) - Final consumption expenditure(g) - Education(H) - Saving(I) Total 115,656 (2.4%) 83,86 31, , ,161 88,20 (70.5%) 7,141 (8.1%) 36,871 (2.5%) 221,424 (2.7%) 171,842 4, , ,71 177,04 (74.1%) 16,45 (.6%) 61,22 (25.%) 7.3% 8.7% 3.1% % 7.2% 7.2% 8.3% 12.0% 4.5% Never attended 8,026 (88.%) 4,51 3,507-1,010,028 6,708 (74.3%) 611 (.1%) 2,31 (25.7%) 6,2 (75.8%) 3,714 3, ,28,145 7,406 (81.0%) 58 (8.0%) 1,73 (1.0%) -8.5% -.4% -7.4% 48.0% 11.1% -5.5% -3.% -6.4% -11.0% Primary school 20,17 (88.5%) 11,870 8, ,640 22,70 16,110 (70.7%) 1,575 (.8%) 6,680 (2.3%) 2,187 (85.7%) 1,67, ,858 34,072 24,76 (72.7%) 2,251 (.1%),303 (27.3%) 1.4% 4.3% -3.2% -11.% 6.5% 2.1% 2.7% 1.2% 0.7% Middle school 15,221 (1.6%) 10,735 4, ,36 16,618 11,538 (6.4%) 6 (8.4%) 5,080 (30.6%) 2,251 (1.8%) 22,008 7, ,668 31,876 24,183 (75.%) 2,556 (10.6%) 7,63 (24.1%) 7.4% 8.8% 3.7% % 7.7% 7.3%.3% 14.4% 2.4% High school 41,43 (3.4%) 31,53, ,3 44,363 31,333 (70.6%) 2,228 (7.1%) 13,030 (2.4%) 82,243 (3.7%) 63,216 1, ,73 87,775 66,263 (75.5%) 6,334 (.6%) 21,512 (24.5%) 8.1% 8.3% 7.5% 17.2% 7.3% 8.0%.5% 16.1% 4.2% Junior college 5,676 (3.4%) 4, ,077 3,87 (64.1%) 187 (4.8%) 2,180 (35.%),573 (5.5%) 8,10 1, ,027 6,86 (68.5%) 574 (8.4%) 3,15 (31.5%) 4.6% 4.2% 6.8% % 0.5% 4.2% 5.5% 18.0% 1.5% College/ university 21,136 (6.0%) 17,070 4, ,016 15,578 (70.8%) 1,317 (8.5%) 6,43 (2.2%) 53,25 (6.%) 45,724 8, ,824 55,658 40,858 (73.4%) 3,858 (.4%) 14,800 (26.6%) 13.6% 14.8% 8.4% % 13.1% 13.4% 14.3% 16.8% 11.3% Graduate school 3,78 (3.2%) 3, ,26 3,126 (73.2%) 255 (8.2%) 1,144 (26.8%) 10,316 (.0%), ,418 6,702 (64.3%) 783 (11.7%) 3,716 (35.7%) 14.0% 16.1% 0.7% 25.2% % 12.6%.8% 17.% 1.3% 13