Zambia

Title: Living Conditions Monitoring Survey 3-2002/2003

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Central Statistical Office (CSO) of P.O.BOX 31908 Lusaka, Zambia, phone: 260 1 25 34 68, fax: 260 1 25 34 68, e-mail: bnsemukila@zamstats.gov.zm.
Data have been collected by household survey since 1991.

2. Purpose and coverage

The following purposes are considered to be very important or of some importance:

• to obtain weights for consumer price index
• to estimate household expenditure for national accounts
• to study the general structure of household incomes/expenditures
• to study income/expenditure patterns of disadvantaged groups, including pensioner households, single parent households, etc
• to study income/expenditure disparities among socio-economic groups
• to study consumer behaviour among socio-economic groups
• for general poverty and/or income distribution studies
• to study effects on income and expenditure of policy changes, especially tax changes
• for market research purposes
• to establish poverty levels and distribution

Geographic coverage: National with the following geographic areas excluded: areas in conflict .

Population coverage:
The following types of household are included in the data collection:

• one person private households
• private households with more than one person
• households of other foreigners in the country
• armed forces residing in private housing within military base
• armed forces residing in private housing outside military base

The following types of household are excluded in the data collection:

• those in collective housing (such as long term hospitals, prisons, monasteries, military quarters)
• non-resident households of nationals (households of nationals located abroad)
• diplomatic households in the country

Units:
Dwelling units are used in the sample selection and are characterised by:

• single structure - detached housing unit
• single unit in a structure containing more than one housing unit
• multiple structures within a compound (e.g. huts)

Data are recorded for the household unit which is characterised by:

• one person units
• two or more people living together:
  • sharing a single dwelling or compound
  • sharing meals
  • sharing a common budget for (at least) food and housing expenditures

Data are recorded for the income unit which is characterised by:

• two or more people:
  • living in the same household
  • sharing a single dwelling or compound

Data are recorded for the consumer unit, expenditure unit or spending unit which is characterised by:

• two or more people:
  • living in the same household
  • sharing a single dwelling or compound
  • sharing meals
  • sharing a common budget for (at least) food and housing expenditures

Unit members: Usual residents temporarily living away from the dwelling are included, if away continuously for less than 6 months. Visitors (not usual residents) temporarily living in the dwelling are included, if staying continuously for more than 6 months. Domestic staff living in same dwelling/compound are included in the unit. Renters living in same dwelling/compound are not included in the unit. Boarders living in same dwelling/compound are not included in the unit.

Head of unit:
The concept of head of household/other unit is used in this survey and is characterised by:

• acknowledged as such by other household/unit members
• responsible for decisions on main expenditures

3. Reference periods

The time period to which income and/or expenditure statistics refer when released/published is from 10/91 to 12/98. These data are collected in the period from 10/91 to 12/98. This survey is conducted every 2 years. The statistics are published every 2 years.

SURVEY METHODOLOGY

4. Sample design

The Primary, Secondary and Ultimate Sampling Units are enumeration area/district, none and household respectively.

Stratification:
Areas/districts were stratified using the following criteria:

• geographical regions
• rural/urban
• administrative districts
• agriculture activity

Households/Consumption Unit, Income Unit, Family Unit were stratified using the following criteria:

• income class
• age group of the head

The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were the list of Census enumeration areas and none respectively. Primary Sampling Units (PSU) were selected using probability proportional to size and Ultimate Sampling Units (USU) were selected using probability proportional to size. The sample size was 10000 households or other units. Errors/biases were minimized by using an updated sampling frame.

Enumeration procedure: Enumeration uses a single round survey design in which each reporting unit is enumerated only once. The sample is divided into 2 representative sub-samples. A smaller set of reporting units is selected from which information on specific issues is gathered or more detailed questions are asked. ¹

The living conditions monitoring survey 3 has a national coverage on a sample basis. It will cover both rural and urban areas in all the mine provin ces Zambia . Analysis of data from the survey will lead to reliable estima te residence,province and natio nal levels. Total of about 10.000 Hhs will be covered during the 12 survey months. For the purpose of the living conditions monitoring survey 3, one survey month has 35 as opposed to 30/31days . In order to meet certain procedural demands associated with household budget survey, a full cycle will have 36 days days. This implies that there are 10 cycles of 36 days each in calendar year. In every cycle 52 standard enumeration areas (SEAS) are covered.

DATA COLLECTION, CONCEPTS, DEFINITIONS AND CLASSIFICATIONS

5. Income data

Income data are collected. Receipts do not have to be regular and recurring to be considered as income. Income includes receipts resulting from the sale or reduction of assets and/or from incurring liabilities are included in income. Income excludes receipts that are not currently available to the unit.

The following receipts are collected separately:

• wages and salaries
• cash bonuses and gratuities
• employee income in-kind provided free or subsidized: housing
• employee income in-kind provided free or subsidized: meals
• employee income in-kind provided free or subsidized: car/transportation
• employee income in-kind provided free or subsidized: goods or services produced by employer
• employee income in-kind provided free or subsidized: other goods or services
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption , net of inputs
• services produced for own consumption , net of inputs
• goods produced for barter , net of inputs
• services produced for barter , net of inputs
• stock consumed from unincorporated enterprise
• services from owner-occupied dwellings
• services from other consumer durables (net)
• interest received
• dividends
• rentals (payment received for produced assets e.g. house) , net of expenses
• rents (payment received for un-produced assets e.g. land)
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular cash gifts
• regular inter-household transfers received from: regular in-kind gifts
• regular inter-household transfers received from: free dwelling

The following receipts are collected but not separately:

• commissions and tips
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• employee social security contributions
• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• survivors benefits
• free government dwelling
• subsidized government dwelling
• food subsidies
• medical reimbursements
• other social insurance benefits
• other social assistance benefits
• regular inter-household transfers received from: regular inheritances or trusts
• regular inter-household transfers received from: subsidized dwelling
• social transfers in kind: medical services
• social transfers in kind: public education
• social transfers in kind: transport subsidies
• social transfers in kind: cultural and recreational services
• social transfers in kind: others

The following receipts are not collected:

• employer social security contributions , excluded due to measurement problems
• royalties
• regular inter-household transfers received from: regular free services

The following receipts are classified as income from paid employment:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• employee social security contributions

The following receipts are classified as property income:

• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• interest received
• dividends
• rentals (payment received for produced assets e.g. house) , net of expenses
• rents (payment received for un-produced assets e.g. land)
• royalties

The following receipts are classified as employment-related transfer income:

• employee income in-kind provided free or subsidized: housing
• employee income in-kind provided free or subsidized: meals
• employee income in-kind provided free or subsidized: car/transportation
• employee income in-kind provided free or subsidized: goods or services produced by employer
• employee income in-kind provided free or subsidized: other goods or services
• retirement pensions from compulsory social security schemes
• other pensions

The following receipts are classified as transfer income but not employment-related:

• regular pensions/annuities from schemes to which employee does not contribute
• old age benefits
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• survivors benefits
• free government dwelling
• subsidized government dwelling
• food subsidies
• medical reimbursements
• other social insurance benefits
• other social assistance benefits
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular inheritances or trusts
• regular inter-household transfers received from: regular cash gifts
• regular inter-household transfers received from: regular in-kind gifts
• regular inter-household transfers received from: free dwelling
• regular inter-household transfers received from: subsidized dwelling
• regular inter-household transfers received from: regular free services
• social transfers in kind: medical services
• social transfers in kind: public education
• social transfers in kind: transport subsidies
• social transfers in kind: cultural and recreational services
• social transfers in kind: others

The following receipts are classified as other income but not employment-related:

• goods produced for own consumption , net of inputs
• services produced for own consumption , net of inputs)
• goods produced for barter , net of inputs)
• services produced for barter , net of inputs
• stock consumed from unincorporated enterprise
• services from owner-occupied dwellings
• services from other consumer durables (net)

The following receipts are excluded due to measurement problems:

• employer social security contributions

The following receipts are collected using the 'last payment' and 'period covered':

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay
• termination and redundancy payments
• employer social security contributions
• employee social security contributions
• employee income in-kind provided free or subsidized: housing
• employee income in-kind provided free or subsidized: meals
• employee income in-kind provided free or subsidized: car/transportation
• employee income in-kind provided free or subsidized: goods or services produced by employer
• employee income in-kind provided free or subsidized: other goods or services
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises
• goods produced for own consumption , net of inputs
• services produced for own consumption , net of inputs
• goods produced for barter , net of inputs
• services produced for barter , net of inputs
• stock consumed from unincorporated enterprise
• services from owner-occupied dwellings
• services from other consumer durables (net)
• interest received
• dividends
• rentals (payment received for produced assets e.g. house) , net of expenses
• rents (payment received for un-produced assets e.g. land)
• royalties
• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• survivors benefits
• free government dwelling
• subsidized government dwelling
• food subsidies
• medical reimbursements
• other social insurance benefits
• other social assistance benefits
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular inheritances or trusts
• regular inter-household transfers received from: regular cash gifts
• regular inter-household transfers received from: regular in-kind gifts
• regular inter-household transfers received from: free dwelling
• regular inter-household transfers received from: subsidized dwelling
• regular inter-household transfers received from: regular free services
• social transfers in kind: medical services
• social transfers in kind: public education
• social transfers in kind: transport subsidies
• social transfers in kind: cultural and recreational services
• social transfers in kind: others

Income data were collected separately for each person receiving income. Components of income for an individual were collected directly from the individual. Negative values (business losses) were excluded when computing self-employment income.

6. Expenditure data

Data collection method:
Diaries are used to collect expenditure data and are maintained for one week.

Diaries are used to collect expenditure on the following items:

• food
• alcohol, tobacco
• other household non-durables (such as newspapers, batteries)
• clothing, footwear
• other personal non-durables (such as perfumes)
• household services (such as plumber)
• personal services (such as driving lessons, haircuts)
• any other household expenses

Interviews are used to collect expenditure data with the respondent completing the interview by a mix of recall and using documentation.

Data for the following expenditure items are collected by referring:

• to the last payment for that expenditure:
  • other household non-durable goods
  • clothing, footwear
  • other personal non-durable goods
  • other durable goods

• to the usual payment for that expenditure:
  • food
  • housing
  • households services
  • personal services

The following types of expenditure items are classified as 'Household consumption expenditure':

• non-durable goods purchased
• durable goods purchased (except housing)
• purchase price of owner-occupied housing
• mortgage repayments, including interest
• services of owner-occupied housing
• major repairs, conversions and extensions to owner-occupied housing
• housing maintenance, minor repairs
• non-regular cash payments to others outside the household
• purchase of gifts of goods and services given to others outside the household
• second hand goods purchased
• expenditure abroad
• valuables

The following types of expenditure items are classified as 'Actual Household consumption':

• income in-kind receipts of goods
• income in-kind receipts of services
• in-kind goods received from other households
• in-kind services received from other households
• social transfers in-kind of goods and services from government and non-profit institutions serving households

The following types of expenditure items are classified as 'Non-consumption household expenditure':

• non-life insurance premiums (e.g. vehicle, housing, other property, medical) , net of claims
• life insurance premiums
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• compulsory transfers to governments (e.g. contributions to government old age and disability insurance program, taxes)

The following types of expenditure items are classified as 'Non-household expenditure':

• regular cash payments to others outside the household
• investment-related expenditures (e.g. purchase of shares/stocks)
• occupational expenditures
• other business-related expenditures

The following types of expenditure items are classified as 'Investment/liability expenditure':

• interest payments (excluding mortgage interest payments)
• financial services (including fees for financial advice, brokerage fees)

The following types of expenditure items are excluded due to measurement problems:

• own produced non-durable goods
• own-produced durable goods
• own-produced services
• services from durables owned (except housing)
• gambling expenditure
• out of pocket health expenditure
• out of pocket education expenditures
• out of pocket transport expenditures

The following types of expenditure items are collected on a 'payments' basis:

• non-durable goods purchased
• durable goods purchased (except housing)
• purchase price of owner-occupied housing
• mortgage repayments, including interest
• services of owner-occupied housing
• major repairs, conversions and extensions to owner-occupied housing
• income in-kind receipts of goods
• income in-kind receipts of services
• own produced non-durable goods
• own-produced durable goods
• own-produced services
• services from durables owned (except housing)
• in-kind goods received from other households
• in-kind services received from other households
• social transfers in-kind of goods and services from government and non-profit institutions serving households
• interest payments (excluding mortgage interest payments)
• financial services (including fees for financial advice, brokerage fees)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical) , net of claims
• life insurance premiums
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure
• out of pocket health expenditure
• out of pocket education expenditures
• out of pocket transport expenditures
• housing maintenance, minor repairs
• regular cash payments to others outside the household
• non-regular cash payments to others outside the household
• purchase of gifts of goods and services given to others outside the household
• second hand goods purchased
• expenditure abroad
• valuables
• compulsory transfers to governments (e.g. contributions to government old age and disability insurance program, taxes)
• investment-related expenditures (e.g. purchase of shares/stocks)
• occupational expenditures
• other business-related expenditures

Classification: COICOP is used for classifying expenditure and has an unspecified number of separate categories at the finest level.

7. Other Data Collection Issues

The following other topics are covered:

• demographic characteristics
• education attainment of members
• employment status of members
• occupation of members
• ownership of selected durable goods
• housing characteristics

Households are not requested to indicate whether durable goods are new or second-hand when their acquisition is recorded.

Non-response: Non-response households (refusals and non-contacts) are substituted.

Non-response is reduced using the following measures:

• more than one repeat visits
• other measures : sensitization of respondents

DATA PROCESSING, ANALYSIS AND DISSEMINATION

Answers are pre-coded on data collection forms to the extent possible.

The responses are edited by the following:

• interviewers, data collectors
• field supervisors
• office staff

Extreme values are amended. In-kind receipts and consumption of own production are included in the estimates. In-kind receipts are valued using:² the respondent's estimate. Consumption of own production is valued using:² the respondent's estimate.

Treatment of owner-occupied housing: Values of owner-occupied housing are included in the total income/expenditure estimates and are valued using the rental equivalent net of housing costs usually paid by owners.

The following information is used in this valuation:

• respondent provides an estimate
• imputed based on housing and rent data

Treatment of selected groups/values in analysis: Some households/units are excluded from analysis because of incomplete response. Missing values are imputed always . Supplementary sources are not used to adjust estimates for under- or over-reporting. Etnic groups are excluded from data analysis.

Weighting:
Weighting factors are used to adjust for:

• sampling
• non-response

Sampling errors: Sampling errors are computed for major aggregates and these sampling errors are available on request.

Tabulation and Analysis: Statistics are presented showing averages per year and statistics are analysed and tabulated for households only.

The following classifications are used for tabulation and analysis of income statistics:

• age of reference person or head of household
• sex of reference person or head of household
• absolute income groups
• principal source of household income
• household size
• structure of household

The following classifications are used for tabulation and analysis of expenditure statistics:

• age of reference person or head of household
• sex of reference person or head of household
• household size
• structure of household

Documentation and Dissemination:
Published survey reports: evolution of poverty in Zambia 91/96,98

Additional statistics (or special tables on request) are available for public use, with charges.³

Separate tables are published for the following special population groups:

• households with wages/salaries as main source of income
• low income households
• other household categories