Capacity Development Workshop on Measuring Social Protection

Measuring Social Protection Using Administrative Data

Presentation by Dalisay S. Maligalig
14 May 2013 BPS-Statistics Indonesia, Jakarta, Indonesia
Disclaimer: The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. Terminology used may not necessarily be consistent with ADB official terms.

Order of Presentation
Why measure? How to measure? What ADB has done? The Social Protection Index Some Results

Why Measure Social Protection (SP)?

To evaluate the effectiveness of current SP programs - Determine the efficiency of targeting mechanisms - Monitor changes in the extent of social protection activities To aid in formulating policies on poverty reduction and human capital development For allocating resources

 Basic information needed: - What are the social protection programs? - How are they classified? Social assistance, social insurance, labor market Basic data needed: - Number of beneficiaries for each program - Total expenditure for each program - How many are poor beneficiaries? Men? Women?

How do we measure SP?

Current Data Sources

Expenditure and beneficiary data from administrative reporting systems

Government Agencies: Ministry of Labor and Social Affairs Ministry of Public Health Department of Tribal Affairs Ministry of Education and Youth Affairs
International Organizations: Red Cross World Food Program UNICEF

Issues
Number of poor beneficiaries are not recorded, only total beneficiaries. No single data source. Data are very fragmented, in various reports. Concepts and definitions vary across years. No designated agency for compiling social protection data.

What ADB has done?

Redeveloped the social protection index so that it can be used by countries for assessment purposes
Technical assistance for 36 countries to consolidate basic data and information Update the social protection index

Find alternative ways of evaluating SPI

The Social Protection Index

The SPI is a useful analytical and assessment tool to analyze SP programs Benefits of the Social Protection Index
- One index that assimilates all the many data and information available. - Index can be decomposed to show the depth and breath of social protection; impact on poor and non-poor; male & female. - Simple and easy to use

The Social Protection Index

2005 - pilot study for 6 countries (Bangladesh, Indonesia, Mongolia, Nepal, Pakistan, and Viet Nam), and SP analysis of 31 countries 2010 - ADB has collected public expenditure and number of beneficiaries data on SP 2008-2010 from 35 countries of Asia and the Pacific, including SP analysis

The Social Protection Index

SP programs categorized into three components
- Social insurance (SI) - Social assistance (SA) - Labor market programs (LMP)

SPI is not a composite index It can be disaggregated in various ways for analytical purposes An assessment of SP programs in the country based on:
Expenditures Coverage Impact to poor Impact on Gender

Data Requirements
Expenditure on SP

Number of SP beneficiaries
The proportion of poor and non-poor receiving SP benefits The proportion of men and women receiving SP benefits GDP per capita

Data Requirements
Reference population for the SP programs
- SI (population aged 60+, employed) - SA (poor, children aged 0-14 years, disabled, disaster-affected) - LM (unemployed and underemployed)

SPI Flowchart
Compilation and validation of data NO Impute missing data using SPI estimation guidelines. Complete Data? YES

Classify each data according to type of SP program: LM, SA, or SI.

For each type of SP program, compute total beneficiaries, total expenditure. Also compute total expenditure for poor, women; number of women and poor beneficiaries. Estimate the reference population by LMP, SA, and SI. Derive SPI by LMP, SA, SI; Depth, Breadth; Poor, Non-poor; Women, Men; and Overall SPI. Social Protection Index

SPI Flowchart
Classification of SP program into LMP, SA, and SI Labor Market Program (LMP) - employment generation - employment services - skills development program

SPI Flowchart
Classification of SP program into LMP, SA, and SI

Social Assistance (SA) - disaster relief and assistance - educational assistance for children - health assistance for the elderly, disabled, and children - other child protection assistance - other programs for the elderly and disabled.

SPI Flowchart
Classification of SP program into LMP, SA, and SI

Social Insurance (SI) - disability insurance - health insurance - maternity insurance - unemployment insurance - work injury insurance - other social insurance - pension.

SPI Flowchart
Imputation of missing data

Estimate Population aged 60 years and over assuming the ratio of Population aged 60 years and over to Total population is constant.
Estimate Population aged 0 to 14 years assuming the ratio of Population aged 0 to 14 years to Total population is constant. Estimate Employed population assuming the ratio of Employed to Total population is constant.

SPI Flowchart
Imputation of missing data

Estimate Underemployed and unemployed assuming the ratio of Underemployed and unemployed to Total employed population is constant or assuming the ratio of Underemployed and unemployed to Total employed population is 25%.
Estimate Population living below national poverty line assuming Headcount ratio is constant or assuming the ratio of Population living below national poverty line to Total population is 23% or 20%.

SPI Flowchart
Imputation of missing data

Estimate Disabled population assuming the ratio of Disabled population to Total population is constant or assuming the ratio of Disabled population to Total population is 3.4% or 1.67%.
Estimate Population affected by disaster assuming the ratio of Population affected by disaster to Total population is constant or assuming the Number of actual beneficiaries of disaster assistance is same as target beneficiaries.

SPI Flowchart
Imputation of missing data

Estimate SP expenditure for poor beneficiaries of each social protection program by multiplying Poverty targeting ratio and the Total SP expenditure.
Estimate SP expenditure for women beneficiaries of each social protection program by multiplying Gender targeting ratio and the Total SP expenditure.

SPI Indicators
Public expenditure on SP Coverage (size of benefits and number of beneficiaries The proportion of poor and non-poor receiving SP benefits The proportion of men and women receiving SP benefits

SPI Formula
=
= %

SPI Formula
/ =

Some Results
Social Protection Index, Philippines
0.09 0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0.00
0.08 0.07
0.06 0.07

2005

2008

2009

2010

Some Results
SPI by Depth and Breadth, Philippines
0.50 0.40 0.30 0.20
0.10 0.00
0.16 0.47 0.40

0.39

0.37 0.23

0.18

0.16

2005

2008

2009

2010

Depth

Breadth

Some Results
SPI by Poor and Nonpoor, Philippines
0.100
0.080

0.060 0.040 0.020

0.000
0.003
0.013 0.058 0.062

0.066

0.057

0.019

0.016

2005

2008

2009

2010

Poor

Nonpoor

Conclusion and Recommendation

Social protection must be measured and analyzed to support better policy formulation and monitoring. SPI is a simple and easy-to-use tool for monitoring social protection. Data for measuring the SPI should be regularly compiled so that SPI can be derived periodically.

Thank you

For More Information

Sri Wening Handayani swhandayani@adb.org Dalisay S. Maligalig dmaligalig@adb.org