1. TREATMENT OF SOCIAL TRANSFERS
IN KIND IN THE HOUSEHOLD
SECTOR OF MEXICO
BY MARTHA TOVAR
Discussant comments
IARIW 33rd General Conference
Rotterdam, the Netherlands, August 24-30, 2014
Jennifer Ribarsky, OECD
2. Overview
• Mexico participated in the OECD-Eurostat
Expert Group on Disparities in National
Accounts (EG DNA)
• Compare micro and macro sources
• Allocate National Accounts (macro) totals
to quintiles
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3. Importance of STiK for Mexico
• On average STiK as a share of GDP is 5.4%
from 2003-2012
– Education services share is 3.4%
– Healthcare services share is 2%
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4. Steps in allocating STiK
A. Allocate households to quintiles
– Using cash or near cash disposable income
– Ranked according to Equivalized Disposable Income
(EDI)
B. Identify relevant variables from household survey
C. Matching household survey information with official
administrative data on education and health
D. Apply distributional breakdown to national accounts
aggregates using a per capita costs for the type of service
provided
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5. Allocation of Education STiK
• Information on actual participation in
different types of education.
• Distinction between participation in
publicly and privately funded education
institutions
• Information available from household
survey then matched to administrative
source
– Results are consistent
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9. Allocation of healthcare STiK
• Number of people receiving health care services
from public institutions, by level of attention
• Average number of times the people go to
receive healthcare services
• Insurance approach?
• Number of times person attends that particular
public healthcare institution times the average
cost from that healthcare institution?
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10. Implications
• Average cost, according to education level or
type of healthcare for any person in any quintile
is the same.
• Therefore, the distinction is the use of the
service (which is implicit in the household
survey data)
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13. Questions / Comments
• What about in-kind transfers other than
healthcare and education in Mexico?
• Interesting to explore the allocation of
healthcare.
– Is there a quality difference between the
healthcare provided by different public
institutions?
– Healthcare access for the lowest quintiles by
public institutions outside the social security
is valued less
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Editor's Notes
Mexico is rather unique in that the share of spending on education services is higher than the share of spending on healthcare services.
If no distinction is available, enrolment in private schools may lead to an underestimation of the poverty impact of public education services if these students are mainly from better-off families and if public subsidies of private schools are lower than the costs of public schools (i.e., too much allocation of STiK to a higher quintile level.)
Each student that participates in a publicly funded education institution is assigned a public education transfer that equals the cost of producing these services in the corresponding level of education, converted to a per student basis based on the number of students enrolled in each level.
Insurance approach providing estimate of average health public spending by age (gender)
A group specific average… allocating spending from a particular institution by number of times of use?
Q3 is receiving more benefits in kind for healthcare than the others. Services provided by institutions belonging to the social security can be more expensive than the services provided by institutions outside this scheme.