Spain

Title: Encuesta continua de presupuesto familiares base 1997

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Instituto Nacional de Estadistica of Paseo de la Castellane 183 Madrid, phone: 0034 91 583 9298, fax: 0034 91 583 9529, e-mail: curena@ine.es.
Data have been collected by household survey since 1997. ¹

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

Lesser importance is attached to:

• 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

Geographic coverage: National without any specific geographic areas excluded.

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

• one person private households
• private households with more than one person
• non-resident households of nationals (households of nationals located abroad)
• diplomatic households in the country
• 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
• nomadic and other households difficult to reach: caravans, caves, shacks, etc.

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

• those in collective housing (such as long term hospitals, prisons, monasteries, military quarters)

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

Unit members: Usual residents temporarily living away from the dwelling are not included as unit members. Visitors (not usual residents) temporarily living in the dwelling are included, if staying continuously for more than 45 days. Domestic staff living in same dwelling/compound are not 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: ²
The concept of head of household/other unit is used in this survey and is characterised by:

• responsible for financial maintenance of household/unit

3. Reference periods

SURVEY METHODOLOGY

4. Sample design

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

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

• geographical regions
• size of municipality

The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were the list of Census enumeration areas and a separate listing exercise respectively. Primary Sampling Units (PSU) were selected using probability proportional to size. The sample size was 9835 households or other units and 8221 interviews. The overall response rate for the survey was 83.6 percent. Errors/biases were minimized by using an updated sampling frame.

Enumeration procedure: Enumeration uses a panel design in which each reporting unit is enumerated more than once. The sample is divided into 8 representative sub-samples, some of which are replaced with new ones during the lifetime of the panel. Each sub-sample remains in the panel for 24 months. The survey uses 8 sub-samples at the same time and drops 1 sub-samples each time. The panel has an expected lifetime of 2 years, and each reporting household/unit is enumerated 8 times in total. If a reporting household/unit drops out from the panel, it is replaced. If changes occur in composition of the reporting household/unit during the lifetime of the panel, then it continues in the panel. No action is taken to select a smaller set of reporting units for more detailed questioning.

DATA COLLECTION, CONCEPTS, DEFINITIONS AND CLASSIFICATIONS

5. Income data

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

The following receipts are collected separately:⁶

• 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
• profit/loss from unincorporated enterprises (mixed income)
• goods produced for own consumption , gross of inputs
• services produced for own consumption , gross of inputs
• services from owner-occupied dwellings
• free government dwelling
• subsidized government dwelling
• regular support received from non-profit institutions serving households: free dwelling
• regular support received from non-profit institutions serving households: subsidized dwelling
• regular inter-household transfers received from: free dwelling
• regular inter-household transfers received from: subsidized dwelling

The following receipts are collected but not separately:⁶

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay
• 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)
• royalties⁷
• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• old age benefits⁶
• other pensions⁶
• unemployment benefits⁶
• family-related allowances⁶
• sickness benefits⁶
• invalidity benefits⁶
• education-related allowances
• housing allowances
• survivors benefits⁶
• other social insurance benefits
• other social assistance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular cash gifts

The following receipts are not collected:⁶

• termination and redundancy payments
• employer social security contributions
• employee social security contributions
• drawing for own use from unincorporated enterprises
• goods produced for barter
• services produced for barter
• stock consumed from unincorporated enterprise
• services from other consumer durables (net)
• food subsidies
• medical reimbursements
• regular support received from non-profit institutions serving households: goods and services
• regular inter-household transfers received from: regular inheritances or trusts
• regular inter-household transfers received from: regular in-kind gifts
• 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 income from paid employment:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• 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

The following receipts are classified as income from self-employment:

• profit/loss from unincorporated enterprises (mixed income)
• goods produced for own consumption , gross of inputs
• services produced for own consumption , gross of inputs
• royalties⁷

The following receipts are classified as property income:

• 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)

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

• remuneration for time not worked, e.g. leave pay
• retirement pensions from compulsory social security schemes
• old age benefits⁶
• other pensions⁶
• unemployment benefits⁶
• family-related allowances⁶
• sickness benefits⁶
• invalidity benefits⁶
• survivors benefits⁶

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

• regular pensions/annuities from schemes to which employee does not contribute
• education-related allowances
• housing allowances
• other social insurance benefits
• other social assistance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships
• regular inter-household transfers received from: family, e.g. alimony, child/parental support
• regular inter-household transfers received from: regular cash gifts

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

• services from owner-occupied dwellings
• free government dwelling
• subsidized government dwelling
• regular support received from non-profit institutions serving households: free dwelling
• regular support received from non-profit institutions serving households: subsidized dwelling
• regular inter-household transfers received from: free dwelling
• regular inter-household transfers received from: subsidized dwelling

The following receipts are collected using the last week as the reference period:

• 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
• goods produced for own consumption , gross of inputs
• services produced for own consumption , gross of inputs

The following receipts are collected using the last month as the reference period:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• remuneration for time not worked, e.g. leave pay
• profit/loss from unincorporated enterprises (mixed income)
• services from owner-occupied dwellings
• 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)
• royalties⁷
• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• old age benefits⁶
• other pensions⁶
• unemployment benefits⁶
• family-related allowances⁶
• invalidity benefits⁶
• education-related allowances
• housing allowances
• survivors benefits⁶
• free government dwelling
• subsidized government dwelling
• other social insurance benefits
• other social assistance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships
• regular support received from non-profit institutions serving households: free dwelling
• regular support received from non-profit institutions serving households: subsidized dwelling
• 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: free dwelling
• regular inter-household transfers received from: subsidized dwelling

The following receipts are collected using the last 12 months as the reference period:

• sickness benefits⁶

Income data were collected as an aggregate for the whole unit. Negative values (business losses) were included when computing self-employment income.

6. Expenditure data

Data collection method:
Diaries are used to collect expenditure data and are maintained for one week. ³

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)
• expenditure on health, transport, housing, leisure, culture, hotels

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:⁴

• to expenditures last week:
  • food

• to expenditures in last one month:
  • other household non-durable goods
  • clothing, footwear
  • other personal non-durable goods
  • housing
  • households services
  • personal services

• to expenditures in last 3 months:
  • other durable goods

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

• non-durable goods purchased
• durable goods purchased (except housing)
• 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
• financial services (including fees for financial advice, brokerage fees)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical) , gross of claims
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)⁸
• gambling expenditure , gross of winnings
• out of pocket health expenditure , net of claims
• out of pocket education expenditures , gross of refunds
• out of pocket transport expenditures , gross of refunds
• 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 : Jewels, works of art, yachts, etc..
• occupational expenditures

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

• services of owner-occupied housing
• income in-kind receipts of goods
• income in-kind receipts of services

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

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

The following types of expenditure items are excluded for other reasons:

• purchase price of owner-occupied housing (excessive burden of work for households)
• mortgage repayments, including interest
• major repairs, conversions and extensions to owner-occupied housing (investment is included)
• interest payments (excluding mortgage interest payments) (not considered consumer expenditure)
• life insurance premiums (not considered consumption)
• compulsory transfers to governments (e.g. contributions to government old age and disability insurance program, taxes) (overload of work for informant households)
• investment-related expenditures (e.g. purchase of shares/stocks) (not considered consumption)
• other business-related expenditures (not considered consumption)

The following types of expenditure items are collected on an 'acquisitions' basis:

• non-durable goods purchased
• durable goods purchased (except housing)
• financial services (including fees for financial advice, brokerage fees)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical) , gross of claims
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)⁸
• gambling expenditure , gross of winnings
• out of pocket health expenditure , net of claims
• out of pocket education expenditures , gross of refunds
• out of pocket transport expenditures , gross of refunds
• 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 : Jewels, works of art, yachts, etc..
• occupational expenditures

The following types of expenditure items are collected on some other basis:

• services of owner-occupied housing (the imputed rental for owner-occupied housing (including local taxes).)
• income in-kind receipts of goods (difference between the local retail price and the amount paid)
• income in-kind receipts of services (difference between the local retail price and the amount paid)
• own produced non-durable goods (local retail price)
• own-produced durable goods (local retail price)
• own-produced services (local retail price)
• services from durables owned (except housing) (local retail price)
• in-kind goods received from other households (difference between the local retail price and the amount paid)
• in-kind services received from other households (difference between the local retail price and the amount paid)

Classification: COICOP is used for classifying expenditure and has 280 separate categories at the finest level.

7. Other Data Collection Issues

The following other topics are covered:⁵

• 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 incentives : a gift

Reporting errors are reduced using the following measures:

• bounding interview
• quality control

DATA PROCESSING, ANALYSIS AND DISSEMINATION

Answers are not pre-coded on data collection forms, but are coded by the interviewers (data collectors). ²

The responses are edited by the following:

• interviewers, data collectors
• field supervisors
• office staff

Extreme values are retained without change. In-kind receipts and consumption of own production are included in the estimates. In-kind receipts are valued using: the respondent's estimate. Consumption of own production is valued using: 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 current market value. ( )

Treatment of selected groups/values in analysis: No 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. No groups are excluded from data analysis.

Weighting:
Weighting factors are used to adjust for:

• sampling
• non-response
• bench-marking , estimate population projections are used

Sampling errors: Sampling errors are computed for major aggregates and these sampling errors are published.

Tabulation and Analysis:

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

• income percentiles, deciles
• absolute income groups
• principal source of household income

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
• occupation of reference person or head of household
• other characteristic of reference person or head of household, level of education, occupation, professional situation, etc...
• expenditure percentiles
• expenditure classes in monetary terms
• household size
• structure of household
• other characteristic of household, number of active persons, employed, etc...
• other classification, autonomous community, size of municipality, systemof occupancy of the community

Documentation and Dissemination:
Published survey reports: encuesta Continua de Presupuestos Familiares. Resultados trimestrales y anuales., trimestralmente
Published methodological information: encuesta Continua de Presupuestos Familiares Metodologia, 1998

Additional statistics (or special tables on request) are available for public use, with charges (as requested by users). Separate tables are published for households with wages/salaries as main source of income. Files of unidentifiable unit data are available (or available on request) for public use, with charges.