Indicator 10.2.1 Proportion of people living below 50 per cent of median income, by sex, age and persons with disabilities

Goal 10: Reduce inequality within and among countries

Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status

10.2.1. Proportion of people living below 50 per cent of median income, by sex, age and persons with disabilities

November 2021

Indicator: 1.1.1, 1.2.1, 10.1.1

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 proportion of people living below 50 percent of median income (or consumption) is the share (%) of a country’s population living on less than half of the consumption/income level of the median of the national income/consumption distribution.

Concepts:

The indicator is measured using per capita welfare measure of consumption or income. The indicator is calculated by estimating the share of the population in a country living on less than 50% of median of the national distribution of income or consumption, as estimated from survey data.

Per capita income or consumption is estimated using total household income or consumption divided by the total household size. Total disposable income or total consumption from both market and non-market sources is the desired welfare vector used.

The estimation relies on the same harmonized welfare vectors (distributions) that are used for 10.1.1 and 1.1.1. Using the same data and closely related methodologies ensures internal consistency across these closely related indicators.

The methodology entails measuring the share of people living below 50% of national median. A threshold set at 50% of the median of the income or consumption is used to derive a headcount rate, similar to how monetary poverty is typically measured. The national median is readily available from the distributional data in PovcalNet.

The measurement follows a two-step process of first estimating half of the national median income (or consumption) and then the share of people living below this relative threshold.

The indicator uses the same data on household income and consumption that is used for monitoring SDG indicators 1.1.1 and 10.1.1, which have been classified as Tier 1 indicators. The methodology and data are similar to that used in measuring international poverty, which has been tested and vetted over many years, including for the purpose of monitoring MDG 1. It is also closely related to a large literature of relative poverty measurement.

Percent

Not relevant

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 is pretested to ensure that the questions are clear, flowing and easily understood by respondents.

Data collection:

The UNHS 2019/20 determined household income for persons with disability. During data collection, the interviewers asked respondents the question about Household income as follows; What is your [NAME] monthly income?

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.

Addressing social inclusion and inequality is important on the global development agenda as well as on the national development agenda of many countries.

The share of the population living below 50% of median national income is a measure that is useful for monitoring the level and trends in social inclusion, relative poverty and inequality within a country. The share of people living below 50% of the median is an indicator of relative poverty and inequality of the income distribution within a country. This indicator and similar relative measures are commonly used for poverty measurement in rich countries (including Organization for Economic Cooperation and Development’s (OECD) poverty indicators and Eurostat’s indicators of risk of poverty or social exclusion) and are increasingly also used as a complementary measure of inequality and poverty in low- and middle- income countries.

1. Income is estimated from expenditure

2. The data is not disaggregated by sex, age and disability.

The indicator is measured using the national measure of consumption, as derived from surveys. The indicator is calculated by estimating the share (in percent) of the population living on less than 50% of median of the national distribution of consumption. The median is estimate from the same distribution as the indicator is estimated from, thus the 50% of median threshold will vary over time

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 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. 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:

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 Micro econometric 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.