Indicator 10.1.1 Growth rates of household expenditure or income per capita among the bottom 40 per cent of the population and the total population

Goal 10: Reduce inequality within and among countries

Target 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average.

10.1.1. Growth rates of household expenditure or income per capita among the bottom 40 per cent of the population and the total population.

November 2021

Indicator: 1.1.1, 1.2.1, 10.2.1

Uganda Bureau of Statistics

Kyewalyanga Simon

Department of Social Surveys and Censuses

Senior Statistician – Survey Operations

+256 772 511682

P.O Box 7186, Kampala

simon.kyewalyanga@ubos.org

Definition:

The growth rate in the welfare aggregate of bottom 40% is computed as the annualized average growth rate in per capita real consumption or income of the bottom 40% of the income distribution in a country from household surveys over a roughly 5-year period. The national average growth rate in the welfare aggregate is computed as the annualized average growth rate in per capita real consumption or income of the total population in a country from household surveys over a roughly 5-year period.

Concepts:

Promoting shared prosperity is defined as fostering income growth of the bottom 40 percent of the welfare distribution in every country and is measured by calculating the annualized growth of mean per capita real income or consumption of the bottom 40 percent. The choice of the bottom 40 percent as the target population is one of practical compromise. The bottom 40 percent differs across countries depending on the welfare distribution, and it can change over time within a country. Because boosting shared prosperity is a country-specific goal, there is no numerical target defined globally.

Percent

None

Uganda National Household Survey

Data collection includes; survey planning, consultative user needs assessment meetings, survey and sampling design, questionnaire development, pretesting and finalization of questionnaires, recruitment and training of field staff, field data collection and capture, data processing, management, checking and analysis, report writing and production. At each stage, the survey conformed to international best practices in survey implementation.

Sample Design:

The sample was designed to allow generation of separate estimates at the national level, for urban and rural areas and for fifteen sub-regions of Uganda. A two-stage stratified sampling design is used. At the first stage, EAs are grouped by districts of similar socio-economic characteristics and by rural-urban location. The EAs were then drawn using Probability Proportional to size.

At the second stage, households which are the ultimate sampling units are drawn using Systematic Random Sampling. The total number of the EAs are selected from the National Population and Housing Census (NPHC) which constituted the sampling frame.

Training and field work:

A team of field supervisors and interviewers are recruited and trained for the main survey. The main approach of the training comprised instructions in relation to interviewing techniques and field procedures, a detailed review of the data collection modules, tests and practice using hand-held Computer Assisted Interviews (CAPI) devices. The training also includes interviews and field practice in selected EAs outside of the main survey sample. Team supervisors are further trained in data quality control procedures and coordination of field activities.

Prior to the main fieldwork, the data collection module are pretested to ensure that the questions are clear, flowing and easily understood by respondents.

Data collection:

The UNHS 2019/20 determined Growth rates of household expenditure. During data collection, the interviewers asked respondents the question about their household expenditure.

Every 3 years

2023

Uganda Bureau of Statistics

Uganda Bureau of Statistics (UBOS) and Economic Policy Research Centre (EPRC)

The Uganda Bureau of Statistics (UBOS) Act, 1998 provides for the development and maintenance of a National Statistical System (NSS) to ensure collection, analysis and publication of integrated, relevant, reliable and timely statistical information. It established the Bureau also as the coordinating, monitoring and supervisory body for the National Statistical System.

Improvements in shared prosperity require both a growing economy and a consideration of equity. Shared prosperity explicitly recognizes that while growth is necessary for improving economic welfare in a society, progress is measured by how those gains are shared with its poorest members. Moreover, in an inclusive society it is not sufficient to raise everyone above an absolute minimum standard of living; it must ensure that economic growth increases prosperity among the poor over time

The decision to measure shared prosperity based on income or consumption was not taken to ignore the many other dimensions of welfare. It is motivated by the need for an indicator that is easy to understand, communicate, and measure—though measurement challenges exist. Indeed, shared prosperity comprises many dimensions of well being of the less well-off, and when analyzing shared prosperity in the context of a country, it is important to consider a wide range of indicators of welfare.

Like for poverty rates (SDG 1.1.1) and growth in household incomes across the distribution (SDG 10.1.1), estimates are based on income or consumption data collected in household surveys, led by Uganda Bureau of Statistics. Many of the same data quality issues applying to those indicators apply here, some of which are summarized below:

Data collected with great heterogeneity and ex-post harmonization will always face limitations. Similar surveys may not be strictly comparable because of differences in timing, sampling frames, or the quality and training of enumerators.

Growth rates are calculated as annualized average growth rates over a three-year period.

Different recall periods were used to capture information on different sub-components of household expenditures. While a 7-day recall period was used for expenditure on food, beverages, and tobacco, a 30-day recall period was used in the case of household consumption expenditure on non-durable goods and frequently purchased services. For the semi-durable and durable goods and services, and non-consumption expenditures a 365-day recall period was used. They were all transformed into monthly household expenditures.

The household consumption expenditure is expressed in 2009/2010 prices.

Quality Management is addressed through a series of activities by the UBOS Top management;

1. The survey implementation is overseen by a Technical Working Group which is constituted using a multi-sectorial approach.
2. The survey report is reviewed by an experienced team at Management level who are in most cases Directors or Heads of departments.

The 2019/20 UNHS underwent several stages before production and sharing of the final findings. During the Survey implementation.

1. Consultative user needs assessment meetings are held with all key stakeholders.
2. The survey and sampling design were generated using scientific methods as recommended by the Census and Survey Rules and Regulations.
3. The questionnaire development follows a multi-stakeholder approach and pretesting helps to establish the relevancy and adequacy of the questions to be used.
4. Senior Supervision is conducted during data collection to ensure that quality data is collected
5. Data editing, cleaning and coding is undertaken before analysis and report writing

Before dissemination, the report is reviewed and quality assured by the Department of Outreach and Quality Assurance at the Bureau.

Data availability:

UNHS

Time series: The database ranges from Uganda National Household Survey (UNHS) 1999/2000, 2002/2003, 2005/2006, 2009/10, 2012/13, 2016/17 and 2019/20

Disaggregation: National, Residence, and 15 statistical sub regions for 2012/13, 2016/17 and 2019/20.

Household consumption expenditure is used rather than the household income.

Appleton, S. (2001a) “Changes in poverty in Uganda, 1992-1997”, chapter in P. Collier and R. Reinnikka (eds.) Firms, households and government in Uganda’s recovery, World Bank: Washington DC. Deaton, A.S. (1997), The Analysis of Household Surveys: A Microeconometric Approach to Development Policy, Washington, DC: The World Bank, for a detailed discussion on income or household consumption for poverty analysis in developing countries. Household consumption is a proxy for long term income A Measured Approach to Ending Poverty and Boosting Shared Prosperity: Concepts, Data, and the Twin Goals. (http://www.worldbank.org/en/research/publication/a

measured-approach-to-ending-povertyand-boosting-shared prosperity) Ferreira, Francisco H. G.; Chen, Shaohua; Dabalen, Andrew L.; Dikhanov, Yuri M.; Hamadeh, Nada; Jolliffe, Dean Mitchell; Narayan, Ambar; Prydz, Espen Beer; Revenga, Ana L.; Sangraula, Prem; Serajuddin, Umar; Yoshida, Nobuo. 2015. A global count of the extreme poor in 2012 : data issues, methodology and initial results (English). Policy Research working paper; no. WPS 7432. Washington, D.C. : World Bank Group.