New Zealand

Title: Household Economic Survey

GENERAL INFORMATION AND BASIC DEFINITIONS

1. Background

Further information is available from Statistics New Zeland of PO Box 2922, Wellington, phone: 64 49314735, fax: 34 49314800, e-mail: caroline.brooking@stats.govt.nz.
Data have been collected by household survey since 1973.

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

Geographic coverage: National with the following geographic areas excluded: remote or inaccessible areas .

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 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
• households of other foreigners in the country
• armed forces residing in private housing within military base
• nomadic and other households difficult to reach: Household of other foreigner included if expect to be resident for more than 12 months.

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

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

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

Head of unit:
The concept of reference person is used in this survey and is characterised by:

• acknowledged as such by other household/unit members
• recognized owner, or responsible for tenancy of dwelling

3. Reference periods

The time period to which income and/or expenditure statistics refer when released/published is from 07/00 to 06/01. These data are collected in the period from 07/00 to 06/01. This survey is conducted every Annually from 1973 to 1998 and every 3 year since 1998.. The statistics are published every Annually from 1973 to 1998 and every 3 year since 1998..

SURVEY METHODOLOGY

4. Sample design

The Primary, Secondary and Ultimate Sampling Units are block, dwelling and dwelling respectively.

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

• geographical regions
• rural/urban

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

• income class

The sampling frames for the Primary Sampling Unit (PSU) and Ultimate Sampling Unit (USU) were the master sample of blocks and a separate listing exercise respectively. Primary Sampling Units (PSU) were selected using simple random sampling and Ultimate Sampling Units (USU) were selected using Use systematic sampling to assign dwellings to panels.Then take a simple random sample.. The sample size was 2808 households or other units. The overall response rate for the survey was 73 percent. Errors/biases were minimized by using an updated sampling frame, Weight of non-response, calibration to auxiliary population totals non-response follow-up..

Enumeration procedure: Enumeration uses a single round survey design in which each reporting unit is enumerated only once. The sample is not divided into representative sub-samples.

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. Exceptions are However collect and publish both regular and irregular 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
• commissions and tips
• termination and redundancy payments
• profit/loss from unincorporated enterprises (mixed income)
• drawing for own use from unincorporated enterprises , excluded for other reasons: Not part of current definition of income.
• interest received
• dividends
• rentals (payment received for produced assets e.g. house) , net of expenses
• royalties
• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• education-related allowances
• housing allowances
• survivors 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

The following receipts are collected but not separately:

• rents (payment received for un-produced assets e.g. land)

The following receipts are not collected:

• remuneration for time not worked, e.g. leave pay , excluded for other reasons
• employer social security contributions , excluded for other reasons: Not part of current definition of income.
• employee social security contributions , excluded for other reasons: Not part of current definition of income.
• employee income in-kind provided free or subsidized: housing , excluded for other reasons: Not part of current definition of income.
• employee income in-kind provided free or subsidized: meals , excluded for other reasons: Not part of current definition of income.
• employee income in-kind provided free or subsidized: car/transportation , excluded for other reasons: Not part of current definition of income.
• employee income in-kind provided free or subsidized: goods or services produced by employer , excluded for other reasons: Not part of current definition of income.
• employee income in-kind provided free or subsidized: other goods or services , excluded for other reasons: Not part of current definition of income.
• goods produced for own consumption , excluded for other reasons: Not part of current definition of income.
• services produced for own consumption , excluded for other reasons: Not part of current definition of income.
• goods produced for barter , excluded for other reasons: Not part of current definition of income.
• services produced for barter , excluded for other reasons: Not part of current definition of income.
• stock consumed from unincorporated enterprise , excluded for other reasons: Not part of current definition of income.
• services from owner-occupied dwellings , excluded for other reasons: Not part of current definition of income.
• services from other consumer durables (net) , excluded for other reasons: Not part of current definition of income.
• regular pensions/annuities from schemes to which employee does not contribute , excluded for other reasons: Not part of current definition of income.
• retirement pensions from compulsory social security schemes , excluded for other reasons: Don't exist.
• free government dwelling , excluded for other reasons: Don't exist.
• subsidized government dwelling , excluded for other reasons: Not part of current definition of income.
• food subsidies , excluded for other reasons: Not part of current definition of income.
• medical reimbursements , excluded for other reasons: Captured as negative expenditure.
• other social insurance benefits , excluded for other reasons: Don't exist.
• regular support received from non-profit institutions serving households: cash, e.g. scholarships , excluded for other reasons: Not part of current definition of income.
• regular support received from non-profit institutions serving households: goods and services , excluded for other reasons: Not part of current definition of income.
• regular support received from non-profit institutions serving households: free dwelling , excluded for other reasons: Not part of current definition of income.
• regular support received from non-profit institutions serving households: subsidized dwelling , excluded for other reasons: Not part of current definition of income.
• regular inter-household transfers received from: regular in-kind gifts , excluded for other reasons: Not part of current definition of income.
• regular inter-household transfers received from: free dwelling , excluded for other reasons: Not part of current definition of income.
• regular inter-household transfers received from: subsidized dwelling , excluded for other reasons: Not part of current definition of income.
• regular inter-household transfers received from: regular free services , excluded for other reasons: Not part of current definition of income.
• social transfers in kind: medical services , excluded for other reasons: Not part of current definition of income.
• social transfers in kind: public education , excluded for other reasons: Not part of current definition of income.
• social transfers in kind: transport subsidies , excluded for other reasons: Not part of current definition of income. Ne fait pas partie de la définition courante du re
• social transfers in kind: cultural and recreational services , excluded for other reasons: Not part of current definition of income. Ne fait pas partie de la définition courante du re
• social transfers in kind: others , excluded for other reasons: Not part of current definition of income. Ne fait pas partie de la définition courante du re

The following receipts are classified as income from paid employment:

• wages and salaries
• cash bonuses and gratuities
• commissions and tips
• termination and redundancy payments

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

• profit/loss from unincorporated enterprises (mixed income)

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)
• royalties

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

• old age benefits
• other pensions
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• housing allowances
• survivors benefits
• other social assistance benefits

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

• education-related allowances
• 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

The following receipts are excluded for other reasons:

• remuneration for time not worked, e.g. leave pay
• 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
• drawing for own use from unincorporated enterprises
• goods produced for own consumption
• services produced for own consumption
• goods produced for barter
• services produced for barter
• stock consumed from unincorporated enterprise
• services from owner-occupied dwellings
• services from other consumer durables (net)
• regular pensions/annuities from schemes to which employee does not contribute
• retirement pensions from compulsory social security schemes
• free government dwelling
• subsidized government dwelling
• food subsidies
• medical reimbursements
• other social insurance benefits
• regular support received from non-profit institutions serving households: cash, e.g. scholarships
• regular support received from non-profit institutions serving households: goods and services
• 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: 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 collected using the last 12 months as the reference period:

• cash bonuses and gratuities
• commissions and tips
• 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
• other pensions
• education-related allowances
• housing allowances
• 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 collected using the 'last payment' and 'period covered':

• wages and salaries
• old age benefits
• unemployment benefits
• family-related allowances
• sickness benefits
• invalidity benefits
• survivors benefits
• other social assistance benefits
• regular inter-household transfers received from: regular inheritances or trusts

The reference period for:

• termination and redundancy payments was Gross amount received.
• profit/loss from unincorporated enterprises (mixed income) was Latest set of accounts.
• drawing for own use from unincorporated enterprises was Latest set of accounts.

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 included when computing self-employment income.

6. Expenditure data

Data collection method:
Diaries are used to collect expenditure data and are maintained for two weeks.

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)

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 expenditures in last 12 months:
  • other household non-durable goods
  • clothing, footwear
  • other personal non-durable goods
  • households services
  • personal services

• to the last payment for that expenditure:
  • housing

• to the usual payment for that expenditure:
  • other durable goods

Data for the following expenditure items are not collected by interview because they are collected by diary:

• food

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

• non-durable goods purchased
• durable goods purchased (except housing)
• mortgage repayments, including interest
• major repairs, conversions and extensions to owner-occupied housing
• 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 , net of claims
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure , net 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

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

• purchase price of owner-occupied housing (Collected but is not classified as part of household expenditure anymore.)
• services of owner-occupied housing (Not part of definition of expenditure.)
• income in-kind receipts of goods (Not part of definition of expenditure.)
• income in-kind receipts of services (Not part of definition of expenditure.)
• own produced non-durable goods (Not part of definition of expenditure.)
• own-produced durable goods (Not part of definition of expenditure.)
• own-produced services (Not part of definition of expenditure.)
• services from durables owned (except housing) (Not part of definition of expenditure.)
• in-kind goods received from other households (Not part of definition of expenditure.)
• in-kind services received from other households (Not part of definition of expenditure.)
• social transfers in-kind of goods and services from government and non-profit institutions serving households (Not part of definition of expenditure.)
• expenditure abroad (Not part of definition of expenditure.)
• valuables (Not part of definition of expenditure.)
• compulsory transfers to governments (e.g. contributions to government old age and disability insurance program, taxes) (Not part of definition of expenditure.)
• investment-related expenditures (e.g. purchase of shares/stocks) (Not part of definition of expenditure.)
• occupational expenditures (Not part of definition of expenditure.)
• other business-related expenditures (Not part of definition of expenditure.)
• others (Not part of definition of expenditure.)

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

• non-durable goods purchased
• durable goods purchased (except housing)
• purchase price of owner-occupied housing

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

• mortgage repayments, including interest
• major repairs, conversions and extensions to owner-occupied housing
• interest payments (excluding mortgage interest payments)
• non-life insurance premiums (e.g. vehicle, housing, other property, medical) , net of claims
• life insurance premiums , net of claims
• licences and fees (e.g. driver's licence, hunting licence, vehicle registration)
• gambling expenditure , net 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

Classification: A national classification that is not consistent with COICOP is used for classifying expenditure and has 2136 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: There is no substitution for non-response, whether by non-contact or by refusal.

Non-response is reduced using the following measures:

• more than one repeat visits
• other measures : Overlap control at the point of selecting the sample.

DATA PROCESSING, ANALYSIS AND DISSEMINATION

Answers are not pre-coded on data collection forms, but are coded by office staff.

The responses are edited by the following:

• field supervisors
• office staff

Extreme values are amended. Neither in-kind receipts nor consumption of own production is included in the estimates.

Treatment of owner-occupied housing: Values of owner-occupied housing are not included in the total income/expenditure estimates.

Treatment of selected groups/values in analysis: Some households/units are excluded from analysis because of incomplete response. Missing values are retained without change .¹ 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:²

• sampling
• non-response
• bench-marking

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

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

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

• income percentiles, Deciles.

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

• age of reference person or head of household
• income percentiles, Deciles.
• principal source of household income
• household size
• structure of household
• other characteristic of household

Documentation and Dissemination:
Published survey reports: 2000/01 Household Economic Survey, Standard Table,and Detailed Expenditure Analysis., October 2001
Published methodological information: 2000/01 Household Economic Survey, Background Notes, October 2001

Additional statistics (or special tables on request) are available for public use, with charges (Charge is based on time taken to do customised request.). 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 (Sauf pour les utilisateur mandaté, les universitaires et les gouvernement.).