unit for satellite accounts national accounts department statistics portugal

1

Unit for Satellite AccountsNational Accounts

DepartmentStatistics Portugal

« Geneva, Switzerland

6-7-8 October 2008 «

Social Accounting Matrix- Portugal

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Contents:

1. General overview of a SAM (NAM)

2. Labour-oriented SAM (expansion of a NAM)

3. Portuguese SAM (NAM)

4. Main uses of a SAM (some results)

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1.General overview

Purpose: provide an overview of a SAM labour-oriented and to show the possible types of indicators that can be derived.

A Social Accounting Matrix (SAM) consists in a framework that integrates National Accounts and Social Statistics in a coherent, complete and consistent way. It also shows the circular flow of income within the economy:

• the goods and services account;• the production account;• the generation of income account; • the primary and secondary distribution account;• the use of income account;• the capital account;• The financial account; and• The rest of the world account.

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1.General overview

Types of SAM:

• Environment-oriented;

• Labour-oriented;

• Investment oriented;::also combinations.

The SAM that will be dealt with is labour-oriented one and its compilation is described in the Handbook on SAM’s. Statistics Portugal compiles SAM’s labour-oriented on a mandatory way.

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1. General overview

Social AccountingMatrix(SAM)

National Accounts

Labour AccountsNational AccountingMatrix(NAM)

6

Table 1.1 : Aggregate National Accounts M atrix, Europeland

ACCOUNT 1, Goods and 2. Production 3. Generation 4. Allocation of 5. Secondary distri-6. Use of dispo- 7. Capital 8. Gross fixed 9. Financial 10. Rest of the world, 11. Rest of the world,12,TOTAL

services of income primary income bution of income sable income capital formation current capital

Classifications product industries primary input institutional institutional institutional institutional industries financial

groups categories sectors sectors sectors sectors assets

1. Goods and product Trade and Intermediate Final consumption Changes in Gross fixed Exports of goods

services groups transport consumption expenditure inventories capital formation and services

margins

0 1 904 1 371 38 376 536 4 225

2. Production industries Output

(basic prices)

3 595 3 595

3. Generation primary input NET VALUE Compensation of

of income categories ADDED employees from

(basic prices) the ROW

1 469 6 1 475

4. Allocation institutional Taxes less GENERATED Property income Property income and

of primary sectors subsidies on INCOME, NET taxes less subsidies

income products (basic prices) on production from

the ROW

133 1 473 341 66 2 013

5. Secondary institutional NATIONAL Current Current transfers

distribution sectors INCOME, NET transfers from the rest

of income of the world

1 633 1 096 10 2 739

6. Use of institutional DISPOSABLE Adjustment for the Adjustment for the

disposable sectors INCOME, NET change in net equity change in net equity of

income of households on pen- households on pension

sion funds reserves funds reserves from ROW

1604 11 0 1615

7. Capital insttutional SAVING, NET Capital transfers+I32 Net incurrence Capital transfers

sectors of liabilities from the ROW

233 68 603 1 905

8. Gross fixed industries Consumption Net fixed capital

capital of fixed capital formation

formation 222 154 376

9. Financial financial Net acquisitions of NET LENDING

assets financial assets OF THE ROW

641 -38 603

10. Rest of the world, Imports of Compensation Property income Current Adjustment for the

current goods and of employees and taxes less transfers change in net equity

services to the ROW subsidies on pro- to the ROW equity of households

(c.i.f.) duction to the on pension funds re-

ROW serves to the ROW

497 2 39 39 0 577

11. Rest of the world, Capital transfers CURRENT

capital to the ROW EXTERNAL

BALANCE

4 -41 -37

12. TOTAL 4 225 3 595 1 475 2 013 2 739 1 615 905 376 603 577 -37

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The matrix format, in a NAM and a SAM has the advantage of (I):

• Provide a general overview of the economy -all the tables are in the same format (a single entry describes simultaneously a use and a resource). Possibility to expand cells to distinguish sub-accounts according to the purpose of analysis and also to aggregate or subdivide groups of units in a NAM;

1. General overview

8

The matrix format, in a NAM and a SAM has the advantage of (II):

• At a meso-level shows interrelations among various different economic flows:from whom to whom - in each sub-matrix it is possible to identify the paying/receiving units to aggregate or subdivide groups of units in a NAM. In these matrices not only it is possible to know the totals receivable/payable but also who’s paying to whom and who’s receiving from whom;

1. General overview

9

The matrix format, in a NAM and a SAM has the advantage of (III):

• Possible to use different classifications from cell to cell and different levels of aggregation for each account. Possibility of creating and introducing dummy accounts whenever data to breakdown a given transaction are not available. These dummy accounts show in the row the total paid by each sector and in the column the total received by each sector;

1. General overview

10

SAM’s can be compiled in one of two ways (I):

• On a bottom-up approach: compilation results from the aggregation of micro data. Using National Accounts in a matrix format and the monetary data of labour accounts related to the type of labour are integrated in the SAM. If labour accounts are not available it is necessary to compile labour data for SAM. Physical data are also available in the same detail.

1. General overview

11

SAM’s can be compiled in one of two ways (II):

• On a top-down approach: compilation results from the breakdown of the macro data in order to fill in the SAM requirements.

• The Portuguese SAM is compiled on a top-down approach, by 17 industries, where employment of the National Accounts is broken-down by gender and education level and households are split into households group according to the main source of income.

1. General overview

12

• The compilation of a NAM (National Accounting Matrix) requires a supply-use table and institutional sector accounts.

• For completeness reasons it is useful to have for each account within the NAM, tables sector by sector, for each transaction in addition to the supply and uses table.

1. General overview

13

Sectors a b c d e f Totala. Non-financial

Corporations (a,a) (a,b) (a,c) (a,d) (a,e) (a,f)A

(Resources)

b. Financial Corporations (b,a) (b,b) (b,c) (b,d) (b,e) (b,f)B

(Resources)

c. General Government (c,a) (c,b) (c,c) (c,d) (c,e) (c,f)C

(Resources)

d. Households (d,a) (d,b) (d,c) (d,d) (d,e) (d,f)D

(Resources)

e. NPISH (e,a) (e,b) (e,c) (e,d) (e,e) (e,f)E

(Resources)

f. Rest of the World (f,a) (f,b) (f,c) (f,d) (f,e)F

(Resources)

TotalA

(Uses)B

(Uses)C

(Uses)D

(Uses)E

(Uses)F

(Uses)Total economy

Table sector by sectorFrom “whom to whom”

14

• A NAM represents the entire economy, the complete sequence of economic accounts but is limited by to its scope and doesn’t show all the dimensions.

• A SAM provides extra-dimensions to the NAM, according to the purpose of analysis: Extra-dimensions result from the breakdowns of the sub-

matrices of the NAM, detailing the actors or the nature of some monetary flows;

Portuguese SAM Labour-oriented SAM

Purpose: capture different kind of labour and its relationship with income distribution and use.

Focus: remunerations of labour as input factor in the process of production: Compensations of employees and Mixed Income.

2.Labour-oriented SAM, expansion of a NAM

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Possible dimensions of a Labour-oriented SAM:

1. Type of labour: status in employment: employee or self-

employed; gender; educational level; age group; categories of professions, …

2. Households groups - as labour suppliers and income receivers

main source of income; dimension of the household; income class, ….

These dimensions provide information on the kind of labour:

its contribution to the generation of Value Added in each industry.

its relation with the income distribution and use.


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The economic accounts integrating Employment:

Generation of Income Account: Labour demandShows how primary income is generated as the result of the participation in the process of production.

includes:

Compensations of employees and Mixed Income, by type of labour

Allocation of primary Income Account: Labour supply shows how income is distributed according to the ownership of assets (financials and tangible non-produced assets) are made available for production.includes: Compensations of Employees and Mixed Income by:


• Type of labour

• Households group

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Generation of income

(value added categories)

Production (NACE-rev. 1 Industries) Total

Agriculture, forestry, fishing

(NACE A/B)

Mining, quarrying,

manufacturing, electricity, gas

and water supply(NACE C/D/E)

Construction(NACE F)

Trade, repair, hotels and

restaurants, transport, storage

and communication(NACE G/H/I)

Financial intermediation, real estate, renting and business activities

(NACE J/K)

Public administration and defence,

education, health and social work, services n.e.c.

(NACE L/M/N/O/P)

FISIM

codes 2a 2b 2c 2d 2e 2f 2g 2h

Compensations 3a

667 9.465 2.646 8.412 4.306 13.934 0 39.431

Mixed Income 3b

2.867 751 1.529 3.479 1.135 1.222 0 10.982Net operating surplus

3c

85 4.500 187 3.621 3.343 -147 0 11.589Other taxes less

subsidies on production

3d

-173 -40 -25 -122 -17 -65 0 -443

FISIM 3e 0 0 0 0 0 0 -3.770 -3.770

Total3f 3.446 14.676 4.337 15.390 8.767 14.944 -3.770

57.789

Contribution of employment by industry in the NAM


Generation of income(value added categories)

Production (NACE-rev. 1 Industries)

TotalNACE A/B

NACE C/D/E NACE F NACE G/H/I NACE J/KNACE

L/M/N/O/PFISIM

codes 2a 2b 2c 2d 2e 2f 2g 2h

Compensations

Male

Primary/lower secondary (ISCED 1-2)

3a-1 467 4.202 2.112 3.967 917 2.259 13.924

Upper or post secondary (ISCED 3-4)

3a-2 20 846 201 947 1.075 1.252 4.342

Tertiary (ISCED 5-6)

3a-3 4 841 164 481 936 3.683 6.109

FemaleISCED 1-2 3a-4 158 2.955 28 1.932 475 2.869 8.417

ISCED 3-4 3a-5 16 435 101 756 602 1.724 3.634

ISCED 5-6 3a-6 2 187 41 328 301 2.147 3.006

Mixed Income

Male

ISCED 1-2 3b-1 1.536 460 1.434 1.959 298 315 6.002

ISCED 3-4 3b-2 27 79 45 295 262 106 814

ISCED 5-6 3b-3 2 36 44 106 328 149 664

Female

ISCED 1-2 3b-4 1.293 151 5 971 82 374 2.875

ISCED 3-4 3b-5 8 19 0 125 63 167 382

ISCED 5-6 3b-6 1 7 0 24 102 111 245 Net operating surplus 3c 85 4.500 187 3.621 3.343 -147 11.589

Other taxes less subsidies on production 3d -173 -40 -25 -122 -17 -65 -443

FISIM -3.770 -3.770

Total 3f 3.446 14.676 4.337 15.390 8.767 14.944 -3.770 57.789

… and in a SAM

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Allocation of primary income

(Institutional sectors)

Generation of income (value added categories)

TotalCompensations

Mixed Income

Net operating surplus

Other taxes less subsidies on production

FISIM

codes3a 3b 3c 3d 3e 3f

Non-financial corporations 4a 10.097 10.097

Financial corporations 4b 1.324 -3770 -2.447

General government 4c -76 10.473 10.398

Households 4d 39.489 10.982 449 50.919

Non-profit institutions serving households

4e -205 -205

Total 4f 39.489 10.982 11.589 10.473 -3.770 68.762

Compensations of employees of Households for providing labour to the economy, in a NAM …

2.Labour oriented SAM, expansion of a NAM

Allocation of primary income

(Institutional sectors)

Generation of income (value added categories) Total

Compensations Mixed Income Net operating surplus

Taxes less

subsidies on

production

FISIM

Male Female Male FemaleISCED

1-2ISCED

3-4ISCED

5-6ISCED

1-2ISCED

3-4ISCED

5-6

cod 3a-1 3a-2 3a-3 3a-4 3a-5 3a-6 3b-1 3b-2 3b-3 3b-4 3b-5 3b-6 3c 3d 3e 3f

Non-financial corporations 4a 10.097 10.097

Financial corporations 4b 1.324 -3770 -2.447

General government 4c -76 10.473 10.398 Ho

useh

old

s classified b

y main

sou

rce of in

com

e

Wages and salaries 4d-1 13.463 4.100 6.003 7.599 3.253 2.848 1.031 297 271 926 220 155 260 40.426 Mixed income

(including property income)

4d-2

235 127 38 515 274 97 4.649 560 268 1.676 298 35 117 8.888

Income in connection with old age (retirement)

4d-3

121 79 17 166 80 66 84 66 13 196 39 4 58 987

Other transfers income (including other households)

4d-4

96 48 45 159 45 13 71 33 8 73 12 0 15 618

Non-profit institutions serving households

4e -205 -205

Total 4f 13.916 4.354 6.103 8.438 3.652 3.025 5.83

5 955 559 2.871 569 194 11.589 10.473 -3.770 68.762

… in a SAM

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Classifications in the pilot-SAM:

NAM/SAM(ESA95 transactions)

Industries: a minimum of 6industries according to NACE

Products: a minimum of 6 productsaccording to CPA.

Institutional sectors: according to ESA95. A minimum of 3 sectors(corporations; general governmentand households including NPISH). Financial transactions

Input labour: status:

employeesself-employed

gendereducational level

lower (ISCED 1-2)medium (ISCED 3-4)higher (ISCED 5-6)

Households:Wages and salaries (S143)Mixed income including property

income (S141+S142; S1441)Income with connection with old age (S1442)Other transfers income (including

other households) (S1443 and S145)

3.Portuguese SAM

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Estimation of compensations of employees-demand side

In the generation of income account, compensations are broken-down by type of labour, by gender and education level. Compensations of employees are estimated with the same procedures used in the National Accounts and respective data sources.

Also Labour input (persons, jobs) is broken-down by type of labour.

Data sources Administrative data source “Quadros de Pessoal” - structures

• Ministry of Labour and Social Security• Every enterprise with at least on employed person answers it

• Labour Force Survey (LFS) - structures

• National Accounts - totals

3.Portuguese SAM -Demand side of the labour market

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Methodology - Part 1

1st Step:

Values of earnings by gender, level of education and activity branch from Quadros de Pessoal. (matrix W*)

2nd Step: Values were adjusted in order to incorporate the employer's actual and imputed social contributions.

Wijg = Wij

l * x (1+ tisc+ tasc),

i refers to the type of labour and j to the branch

Activity branches A B . . . P Q TOTAL

Type of labour 1 2 . . . . . . 17 TOTALG1 - MG1 - F C21 C22 Cij C2.

G2 - MG2 - FG3 - MG3 - FTOTAL C.2 C.j

3.Portuguese SAM-Demand side of the labour market

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Each estimate was also adjusted to an annual scale:

Wijga = 14 * Wij

g

3rd step: Determination of the matrix of hours worked in each branch, by gender and education level, available by the same source Quadros de Pessoal. This matrix, with the general element Hij, was also scaled to an annual basis.

4th step:

Determination of the average hourly earnings:

cij = (Wij / Hij) 5th step:

Determination of the relevant matrix of hours worked using the data from Labour Force Survey: hij

w


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Methodology - Part 2

Reconciliation with NA data through the RAS method, taking into account two constraints:

NA figures of compensations by industry Weights of each kind of labour in the total compensations obtained from the matrix C of the first estimates.

For Mixed Income, the same data sources and methodology was adopted. It was admitted that the hourly earnings of self-

employed were the same as those of the employees.

= Average hourly earnings x Actual hours worked

cij = cij x hijw

First estimates of

compensations Matrix C


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Estimation of compensation

Compensations were previously broken-down by type of labour. For the allocation of the primary income account, compensations and mixed income are further broken-down by type of recipient household group according to the main source of income.

Compensations are estimated through the use of the National Accounts procedures and respective data sources.

Data sources:

• Household Budget Survey (HBS) – structures

• National Accounts (NA) - totals

3.Portuguese SAM-Supply side of the labour market

27

1st step

From HBS a matrix of compensations by type household (rows), gender and education level and productive branch (columns), matrix R:

QG1-M G1-F … G3-F … …

R .1

R .2

R .3

R .4

R .1 R .2 R .j R .17

Total

TotalHou

seho

ld

subs

ecto

r

S1442S1443+S145

AActivity branchesType of labour

S143S141+S142+S1441

2nd step The last row of the above table - row R.j – matches the matrix of compensation associated with the demand side of labour (industry x type of labour, matrix Cij), that has already been reconciled with NA data. Matrix Cij will be considered as constraint for matrix R.


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3rd step

From matrix R, the share of compensations by type household for a certain branch / type of labour can be found. Matrix Rw of relative weights of each cell of R in the total of the respective column. The sum of each column of matrix Rw is 1. The generic element:

rwij = rij / R.j

4th step

There are NA values (matrix C) and the HBS structure (matrix Rw) to respect. Each value of matrix C, cij, is broken-down through the structure of households of matrix Rw.

The result is a matrix R1 with dimension 4x(6x17) compatible with NA. The last row of R1 is now identical to matrix C.


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5th step

Being the objective to have a matrix of compensations of employees by type of labour and type of household, the values of different branches must be aggregated, as if only one industry was considered. The resulting matrix, let us call C*, has a dimension 4 households groups (in row) x 6 types of labour (in column).

3.Portuguese SAM Supply side of the labour market

30

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«4.Main uses

1.Productivity growth of labour input (requires SAM at constant prices)

2.Employment growth

3.Composition of labour among industries in terms of status, gender, educational level

4.Gender cost of labour differential among industries and countries that compile SAM

5.SAM time series: analysis of impacts and changes in the structures of labour (in composition and industries)

31

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Average percentage of compensations by gender (2000-2003)

39%

61%

Men

Women

Total compensations by gender

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

2000 2001 2002 2003

mill

ion

eu

ros

Women

Men

Growth rate of total compensations by gender

0,0

2,5

5,0

7,5

10,0

2001 2002 2003

%

Men

Women

Between 2000 and 2003:

1. Compensations by gender present a structural behaviour

2. On average, 39% of the compensations referred to women and 61% to men

3. Compensations for women had a higher nominal growth rate

4.Main uses: Direct indicators Compensations by gender

1.

3.

2.

32

«

«

Average percentage of compensations by gender (2000-2003)

39%

61%

Men

Women


1. Compensations of women, on average, represent 39%, but

2. women occupy, on average, 47% of jobs

3. Women’s compensations had a higher growth rate

Average jobs by gender (2000-2003)

53%

47%

Men

Women

4. Main uses: Direct indicators

Jobs by gender1.

3.

2.

Growth rate of jobs by gender

-2,5

0,0

2,5

5,0

2001 2002 2003

%

Men

Women

33

«

«


1. Compensations by level of education present a structural behaviour.

2. On average, 67% of the compensations referred to lower level of education, 28% to medium and 17% to the higher level.

3. Compensations of the higher and medium levels of education grow more than the lower level.

Total compensations by educational level

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

2000 2001 2002 2003

mill

ion

eu

ros

Higher

Medium

Lower

Growth rate of total compensations by educational level

-2,5

0,0

2,5

5,0

7,5

10,0

2001 2002 2003

%

Lower

Medium

Higher

4.Main uses: Direct indicators Compensations by level of education

1.

3.

2.Average percentage of compensations by educational level (2000-2003)

57%17%

26%Lower Medium Higher

34

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«


1. Compensations of the highest educ. level represent on average 26% but

2. Only 12% of jobs, on average

3. The number of jobs of the higher and medium levels of education grow more than the lower level,

Average percentage of compensations by educational level (2000-2003)

57%17%

26%Lower Medium Higher

Average percentage of jobs by educational level (2000-2003)

73%

15%

12%

Lower Medium Higher

4.Main uses: Direct indicators Jobs by level of education

1.

3.

2.

Growth rate of jobs by educational level

-5,0

-2,5

0,0

2,5

5,0

7,5

10,0

2001 2002 2003

%

Lower

Medium

Higher

35

«

«4. Main uses: Direct indicators Compensations by gender and level of education

The split of compensations of employees by gender changes according to the level of education:

Women have a higher percentage within the medium and higher levels of education, in relation to the differential men vs women.

Average total compensations by gender and educational level (200-2003) - detail for lower level

17%

26%

37%

20%

57%

Medium Higher Low er H Low er M

Average total compensations by gender and educacional level (2000-2003) - detail for medium level

57%

10%

7%

17%

26%

Low er Higher Medium H Medium M

Average total compensations by gender and education level (2000-2003) - detail for higher level

58%

17%

13%

12%

26%

Low er Medium Higher H Higher M

36

«

«4.Main uses: Direct indicators Yearly average compensations by gender and level of education

For the same education level, women’s yearly average compensations are lower than men’s.

Average compensations of employees for women of the highest level are closer with those of men corresponding to the immediate lower level of education (medium) and those of women for the medium are closer with those of men for the lowest.

Yearly average compensations by gender and eductaion level

0

10.000

20.000

30.000

40.000

50.000

2000 2001 2002 2003

euro

s

Lower M

Lower W

Medium M

Medium W

Higher M

Higher W

Total

37

«

«

4. Main uses: Direct indicators

Average compensations by industry …

Average compensations by industry and gender (2000-2003)

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

A B C D E F G H I J K L M N O P

NACE_A17

mil

lio

n e

uro

s

Women

Men

… gender

… and level of education

Average compensations by industry and educational level (2000-2003)

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

A B C D E F G H I J K L M N O P

NACE_A17

mil

lio

n e

uro

s

Lower Medium Higher

38

«

«4.Main uses: Direct indicators Average compensations in Manufacturing (2000-2003)

Manufacturing is an example of industry with predominance of compensations generated by:

• lower education job’s

• men job’s

Manufacturing - detail for lower level

12%

11%50%

27%

77%

Medium Higher Low er H Low er M Manufacturing - detail for medium level

77%

8%

4%

12%

11%


Manufacturing - detail for higher level

77%

12%

8%

3%

11%


39

«

«4.Main uses: Direct indicators Average jobs in Manufacturing (2000-2003)

Manufacturing is an example of industry with predominance of:

• lower education jobs’

• men job’s

Manufacturing - detail for lower level

10%

4% 46%

40%

86%


Manufacturing - detail for medium level

87%

5%

4%

10%

4%


Manufacturing - detail for higher level

85%

3%

2%

4%

10%


40

«

«4.Main uses: Direct indicators Average compensations in Education (2000-2003)

Education - detail for lower level

8%

72%

6%

14%20%


Education - detail for medium level

20%

3%

5%

8%

72%


Education - detail for higher level

20%

8%23%

49%71%


Education is an example of industry with predominance of compensations generated by:

• higher education job’s

• women job’s

41

«

«4.Main uses: Direct indicators Average jobs in Education (2000-2003)

Education - detail for lower level

10%

57%7%

26%32%


Education - detail for medium level

32%

3%

7%

10%

58%


Education - detail for higher level

32%

14%

44%59%

10%


Education is an example of industry with predominance of:

• higher education job’s

• women job’s

42

«

«4.Main uses

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Documents

sam labouroriented

social accounting matrix

general overviewtypes

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e c o n o

goods andt o t

orientedinvestment oriented

social statistics